Tips you Should know about your Taxes

Did you know?

The Canada Revenue Agency (CRA) is here to help you during tax season. Here is a list of tips you should know about your taxes, including many ways to help you save money at tax time.

For individuals

1. Plan ahead  – Register for My Account and sign up for direct deposit so you’ll be ready when you file your return. Also be sure to file on time to avoid late-filing penalties and fees and to make sure there are no interruptions to your benefit and credit payments.
2. Tax-free savings account (TFSA) – Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not subject to tax—either while held in the account or when withdrawn.
3. Registered retirement savings plan (RRSP) – You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan.
4. Charitable donations – Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donees may be eligible for a charitable tax credit.
5. Families – There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes—save those receipts! If you care for dependants with a physical or mental impairment, you may be able to claim up to an additional $2,000 in the calculation of certain non-refundable tax credits related to the new family caregiver amount.
6. Students – Were you a student during 2012? You may be able to claim tuition, textbook, and education amounts, as well as the interest you paid on your student loan.
7. Public transit amount – If you use public transit, you may be able to save by claiming the cost of your transit passes.
8. Seniors – If you receive a pension, you may be able to split up to 50% of eligible pension income with your spouse or common-law partner to reduce the taxes that you pay. You may also be eligible to claim the age amount, medical expenses, and the disability amount.
9. Homebuyers – You may be able to save up to $750 if you bought your first home in 2012.

For more information, visit our Web site at www.cra.gc.ca.

Fast facts about filing your income tax return online

• Filing your return online means receiving your refund faster.
• Filing online is easy. Certified software packages and Web applications (some of which are free to use) guide you through the process, ensuring you don’t miss out on credits and benefits you may be eligible for.
• If you are already filing online, you no longer need a web access code. Now, all you need to file online is your social insurance number and date of birth.
• Filing online is secure. The CRA uses the same high level of online security used by Canadian financial institutions.
• Go to www.cra.gc.ca/getready and let us walk you through it step by step.
• If you need help filing your return, you can contact the Community Volunteer Income Tax Program. To find a volunteer tax preparation clinic, go to www.cra.gc.ca/volunteer.

For more information please visit the Canada Revenue Agency website: http://www.cra-arc.gc.ca/menu-eng.html