If you bought a new home or had a baby or got married in 2017 – it could qualify you for new tax credits and deductions. Life’s milestones are something to celebrate but it also means qualifying for tax credits when you file your tax return this year.
Did Your Relationship Status Change?
Whether you married your high school sweetheart in 2017 or you started living common law with your partner (you have to have lived at the same address for 12 consecutive months to be considered common law), your relationship status can have an impact on your tax return and the amount of your refund. Don’t keep your relationship status a secret. Tell a TAXplan TAXpro and we’ll make sure to keep the Canadian Revenue Agency (CRA) up to date on your current relationship status.
If your status changed in 2017 or you became a parent there are certain credits and deductions you may qualify for and they will be based on your household income as opposed to your personal income. Credits such as the GST/HST credit and the Canada Child Benefit (CCB) are an example of what you may be eligible for. A TAXplan TAXprofile ensures you never have to miss another credit or deduction.
You can also max out your tax savings by pooling your charitable and medical expenses with your spouse or commonlaw partner. It’s win-win!
Your Bundle of Joy!
Babies are such a welcome addition to our lives and if you’re a first time parent there are so many “firsts”that thinking of your taxes may not be top of mind. No worries – at TAXplan we know what young families are going through. We have them ourselves! If you adopted a child or were expecting or you went through fertility treatments there are a few things you should be aware of when it comes to your taxes:
- New eligible medical expenses – If you undertook fertility treatments or assisted reproductive technologies over the past ten years you’re in for a new tax break. Furthermore, you no longer need to be diagnosed as infertile in order to claim this as a medical expense.
- Parental leave – Whether it’s maternity or paternity leave in order to be eligible for Employment Insurance (EI) benefits you or your spouse/partner need to have worked 600 insurable hours (about 16 full-time weeks) the year prior to claim them. Your normal weekly earnings must also be reduced by more than 40 per cent to receive EI benefits. Remember, EI is considered taxable income and should be reported on your income tax. As of December 1, 2017, Canadian parents working in federally regulated sectors including banking, telecom, transportation and the public service can spread 12 months of EI benefits over 18 months as a part of their parental leave.
- Tax benefits – Most parents in Canada are eligible to apply for the CCB, a tax-free monthly payment to assist with the cost of raising children. Simply fill out form RC66 and send it to the CRA or contact TAXplan and we’ll gladly do it for you.
- Your child’s education – Save for your little one’s college or University education by opening a Registered Education Savings Plan (RESP). Furthermore, whatever you deposit into an RESP can qualify for matched dollars through the Canadian education savings grant.
Did you buy a home?
If you purchased a new home for the first time ever in 2017 you’re looking at some new tax credits this year. Take advantage of the First-Time Home Buyers’ Tax Credit (FTHB), a $5,000 credit, which works out to $750 in tax savings.
2017 could prove to be a big tax year for you with new credits and deductions that add up to a bigger refund. If you’re unsure what you’re eligible for let the TAXplan TAXprofile assist you with a customized checklist of tax documents. TAXplan makes filing your taxes easy, convenient and affordable. Check us out!