2015 Tax Return Preparation Tips - Canadian Tax Lawyer Help


If you have foreign assets with a cost in excess of $100,000 you are required to report them on form T1135. Failure to report offshore assets can result in fines and prosecution.
Hair transplant costs paid to a doctor will generally qualify for a medical expense credit, subject to the normal 3% of net income qualification for all medical tax credits.
If you move 40 kms or more for work or school you can deduct your moving expenses including storage costs, meals and up to 15 days of temporary accommodations.
If your employer requires that you incur expenses that are not reimbursed you can claim an income tax deduction for those expenses provided that you employer has provided you with a form T2200.
The cost of vitamins, even if prescribed by a physican, are not eligible for a medical tax credit.
Many tax benefits are being distributed through the tax system as tax credits through the personal T1 tax return. So, if no income tax return is filed, no benefits are available, for example the GST/HST credit. Some benefits, like the Working Income Tax Benefit, have to be applied for every year. Furthermore some provinces for example Ontario, offer sales tax credits and property tax credits for low income earners. but only through the income tax return.
Taxpayers can apply to share their CPP (Canada Pension Plan) pension income with their spouse if they are both aged 60 or over. Pension sharing is not the same as pension income splitting, which we discussed in a previous tax return preparation tip, sharing a CPP pension accomplishes income splitting by putting taxable income into the hands of the lower-income partner and thereby reducing taxes owing by the couple.
Students who are apprentices in a designated Red Seal trade program are allowed a income tax deduction for interest on their government student loans.
The new Family Tax Cut is available for 2015 and allows spouses (legal or common-law) who have children less than 18 years of age to carry out income splitting to reduce their total tax burden. The higher-earning spouse can transfer up to $50,000 of income to the lower-earning partner, for an income tax credit of up to $2,000.
Starting with 2015 the CRA will accept a T1 tax return with a disability tax credit claim but will not be processing it until the form T2201 has been received.
T-slips are available on-line if you have registered for MyAccount access on the Canada Revenue Agency (CRA) website. To view the slips click on the “tax returns” tab and then on the“tax information slips.” Tab. T4, T4A and T5 tax slips should have been available since early March. The filing deadline for T3 and T5013 tax slips is March 30th
The child care expense deduction dollar limits have increased by $1,000 for the 2015 tax year. so that the maximum claim is $8,000 for each child under seven at the end of the year; $5,000 for each child aged seven through 16 and $11,000 for each child eligible for the Disability Tax Credit.
For dispositions of qualified small business corporation shares in 2015 or for qualified farm or fishing property before April 21, 2015 the lifetime capital gains exemption has increased to $813,600 and for qualified farm or fishing property $1,000,000 for dispositions after April 20, 2015.
Interest paid in 2015 or the preceding five years on qualifying student loans can generally be claimed as a non-refundable income tax credit.
If you and your spouse donate more than $200 per year to registered charities, the couple can get a larger donation tax credit by pooling the donations. One partner claims all of the donations on his or her return.
If a student pays someone to look after a child while attending school, they may be able to deduct child care expenses.
A full-time student (or a part-time student with a certified mental or physical impairment), can claim $400/month they were enrolled in a qualified educational program in a designated educational institution. A part-time student can claim $120/ month they were enrolled. You may also be able to transfer the unused amount to a parent or grandparent.
Spouses can pool their medical expenses and claim them on one of the tax returns to reduce the overall amount the couple pays on their income taxes.
If you do not pay the balance owing on your taxes by April 30 you will be charged interest by CRA. The rate changes every quarter and is presently 5%.
If you do not file your T1 tax return by the due date you will be charged a late filing penalty. The penalty is 5% of your 2015 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
The maximum limit that can be claimed per child has increased by $1,000. See Form T778, Child Care Expenses Deduction for 2015 at http://www.cra-arc.gc.ca/E/pbg/tf/t778/README.htmlfor more information.
To more easily fill out your tax return, auto-fill my return is a secure Canada Revenue Agency (CRA) data service that allows individuals and their authorized tax representatives to automatically fill in parts of the 2015 income tax return. Go to http://www.cra-arc.gc.ca/esrvc-srvce/tfllmyrtn-eng.html for more information.

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