There are a number of ways to reduce the amount of taxes you owe, and keep more money in your pocket at tax time. The Canada Revenue Agency (CRA) can help you learn more about the various credits and deductions you may be entitled to and that can save you money when you file your 2013 Income Tax Return.
1. Any income you earn in a registered retirement savings plan (RRSP) is usually exempt from tax as long as the funds remain in the plan. RRSPs, you save for your retirement and get a break at tax time too.
2. As long as you stay within your contribution room limit, you will not pay tax on any income you earn from investments in your tax-free savings account.
3. Does someone in your family regularly take the bus to work? You may be able to get a non-refundable tax credit for the cost of the transit passes by claiming the public transit amount.
4. Have you retired and now receive a pension? You can split up to 50% of eligible pension income with your spouse or common-law partner to reduce the overall taxes you pay. See pension income splitting for more information.
5. Do you work in the trades? Tradespeople can deduct part of the cost of eligible tools purchased throughout the year.
6. Did you buy your first home in 2013? Check out the home buyers’ amount to see if you qualify.
For people who are self-employed
8. Did your business employ an apprentice? A salary paid to an employee registered in a prescribed trade in the first two years of his or her apprenticeship contract qualifies for a non-refundable tax credit for the employer.
9. Did your business (which is not a primarily child care services business) create licensed child care spaces for the children of your employees? If so, you may be eligible for the investment tax credit for child care spaces for each new child care space you created.
For more information on income tax deductions and credits that are available visit the CRA website for the latest updates.
By Andrew W Bradley a licensed Insurance Broker and Financial Services Advisor helping Orleans families since 2011. Combining this with his previous working experience with the Canada Revenue Agency enables him to help a wide range of individuals, families and businesses. As an Independent Broker he devotes time to educating the consumer and implementing comprehensive financial plans for both individuals and businesses in areas including insurance and investments.
The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. I recommend that you obtain your own independent professional advice (preferably me) before making any decision in relation to your particular requirements or circumstances.