Canada Tax Credit

Property Tax Credit Ontario Canada

admin — Thu, 16 Sep 2010 19:51:10 +0000

The refundable property tax credit provides assistance for people with low to moderate incomes who own or rent a principal residence in Ontario.

Property Tax Credit:

Based on occupancy cost – property tax paid, or 20% of rent paid.
The basic property tax credit for individuals under age 65 is $250.
The basic property tax credit for individuals age 65 or older is $625.
Credit would not exceed occupancy cost, and would be subject to a maximum of $900 for non-seniors and $1,025 for seniors.
Adjusted by 2% of adjusted family net income over $20,000 for single people and over $25,000 for families.
Refundable, and claimed on the personal income tax return, beginning with the 2010 return.

You cannot claim a Property Tax Credit for more than one Ontario residence, such as a house and a cottage, for the same period. However, you can claim more than one principal residence if you have lived in more than one at different times in the year, and your total period of principal residence occupancy does not exceed 12 months. If you rent out part or all of your principal residence, you can claim a property tax credit only for the part of the residence in which you live and for the time you actually lived in the residence.

Child Fitness Tax Credit Canada

admin — Thu, 16 Sep 2010 19:50:47 +0000

Child Fitness Tax Credit Canada

Starting with the 2007 tax year, the Government of Canada allows a non-refundable tax credit based on eligible child fitness expenses paid up to $500 per child by parents to register a child in a prescribed program of physical activity.

The children’s fitness tax credit lets parents claim up to $500 per year for eligible fitness expenses paid for each child who is under 16 years of age at the beginning of the year in which the expenses are paid.

If a child qualifies for the disability tax credit, parents can claim up to $500 per year in eligible fitness expenses paid for the child who is under 18 years of age at the beginning of the year. Also, if at least $100 in eligible fitness expenses has been paid for the child, an additional amount of $500 can be added to the eligible fitness expenses actually incurred.

Please note that the child fitness tax credit will be calculated using the lowest tax rate (15% for 2008), so the maximum tax credit per child for 2008 will be $75.

GST Payment Dates 2012 | GST/HST Payment Schedule

admin — Thu, 16 Sep 2010 19:42:43 +0000

The GST Tax credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.

GST Payment Dates 2012: (if you qualify based on the information on your 2011 income tax return.)

January 5, 2012
April 5, 2012
July 5, 2012
October 5, 2012

Please note that GST payment schedule are generally issued on the 5th day of each quarter.

To be eligible for GST/HST Tax Credit benefits:

GST/HST payments are calculated based on the recipient’s net income added to the net income of his or her spouse or common-law partner, if applicable, minus any amount the recipient, his or her spouse or common-law partner reported for the Universal Child Care Benefit on your tax return.
The applicant must be 19 years of age or older, have (or previously had) a spouse or common-law partner, or be (or previously was) a parent and live (or previously lived) with their child.
To apply for the GST Tax credit, you must file a personal income tax return. Simply tick the GST/HST credit check box on the first page of your return. If you have a spouse, your tax return must provide information on your spouse’s social insurance number, first name, and net income amount (even if it is zero).

Low Income Tax Credit | Working Income Tax Benefit

admin — Thu, 16 Sep 2010 17:54:21 +0000

Working Income Tax Benefit for Low Income Tax Credit:

The working Income Tax Benefit (WITB) is a refundable low income tax credit intended to provide tax relief for eligible working low income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce. You can claim the WITB on line 453 of your Income Tax and Benefit Return.

You can receive the working Income Tax Benefit (WITB) if you are:

19 years of age or older on December 31, 2010
a resident of Canada throughout the year
a single individual without dependants who earns $3,000 to $12,833 per year, or a family (including couples with or without children, and single parents) that earns $3,000 to $21,167 per year

Visit here for more detail information.

Working Income Tax Benefit (WITB) Payments Dates:

April 5, 2010
July 5, 2010
October 5, 2010
January 5, 2011

Please note that The 2009 Federal Budget will increase funding for the WITB. However, advance payments for 2010 will be based on the 2009 rates.

Child Care Tax Credit | Day Care Tax Credit Canada

admin — Thu, 16 Sep 2010 17:51:15 +0000

Child Care Tax Credit | Day Care Tax Credit Canada

Child care costs are not claimed as a non-refundable tax credit, but as a deduction from income on line 214 of the personal tax return. A non-refundable tax credit is always at the lowest tax rate (except in Québec), but a reduction of income would save tax at the taxpayer’s marginal tax rate.

Eligible Child Care Expenses include day-care centres and day nursery schools, some individuals providing child care services, day camps and day sports schools, educational institutions such as private schools (the portion of tuition costs relating to child care services), boarding schools, and overnight sports schools and camps.

Other Child Care Tax Credit and Benefit Programs:

Canada Child Tax Benefit (CCTB): The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.
National Child Benefit Supplement (NCBS): The National Child Benefit is a joint initiative of the federal, provincial, and territorial governments.
Child Disability Benefit (CDB): a tax-free benefit for families who care for a child under age 18 who qualifies for the disability amount.
Universal Child Care Benefit (UCCB): The UCCB is designed to help Canadian families, as they try to balance work and family life, by supporting their child care choices through direct financial support. The UCCB is for children under the age of 6 years and is paid in instalments of $100 per month per child.

Sales Tax Credit Ontario Canada

admin — Thu, 16 Sep 2010 17:44:32 +0000

Sales Tax Credit:

The basic sales tax credit is $100.
The additional credit for your spouse or common-law partner is $100.
Reduced by 4% of adjusted family net income over $20,000 for single people, and over $25,000 for families.
Refundable and paid quarterly, starting July 2010.

The Sales Tax Credit for each dependent child under age 19 on December 31 is $50. Only one person can claim a sales tax credit for a dependent child.

In cases of separation or divorce, the credit must be claimed by the primary caregiver (generally the recipient of the Canada Child Tax Benefit).

Medical Expenses Tax Credit Canada

admin — Thu, 16 Sep 2010 17:21:14 +0000

The medical expense tax credit applies to individuals who have sustained significant medical expenses for themselves or certain of their dependants.

To qualify for the medical expense tax credit, the medical expenses must have been paid or deemed to have been paid by either the individual or his or her legal representative for qualifying medical expenses as provided for in subsection 118.2(2) Furthermore, the medical expenses used in calculating a medical expense tax credit for a particular taxation year:

Must have been paid within any 12-month period ending in the calendar year, unless the individual died in the year; in which case, the medical expenses must have been paid within any 24-month period that includes the date of death
Must be proven by filing supporting receipts (except for certain vehicle and meal expenses)
Must not have been used in calculating a previous year’s medical expense tax credit and must not have been reimbursed or be reimbursable

Please note that you should claim the total medical expenses for both you and your spouse or common-law partner on one tax return. You can claim the medical expenses on either spouse’s tax return. If both spouses have taxable income, it is usually better to claim the medical expenses on the return with the lower net income.

This is because the lesser of $1,925 (federal, for the year – see the tables of non-refundable tax credits for provincial/territorial amounts) or 3% of net income is deducted from the medical expenses to determine the amount to be used for the tax credit. However, if the lower income spouse does not have enough tax payable to offset the medical expense tax credit, it may be beneficial to move the expenses to the higher income spouse.

Family Tax Credit and Family Tax Benefit Canada

admin — Thu, 16 Sep 2010 16:54:02 +0000

The federal and provincial governments have family tax credit and benefit programs which provide additional income for families, and for low-income individuals. These programs include

Canada Child Tax Benefit (CCTB)
Universal Child Care Benefit (UCCB)
National child Benefit (NCB)
Child Disability Benefit (CDB)
GST/HST credit

For more information on these programs, see the Canada Revenue Agency (CRA) Child and Family Benefits web page.

Education Tax Credit Canada

admin — Thu, 16 Sep 2010 16:46:33 +0000

Education Tax Credit Canada

Starting with the taxation year, scholarship, bursary and fellowship income is fully exempt from tax when the income is received in connection with a program for which the student will get an Education Tax Credit. The income is not reported on the tax return.

If you are not eligible to claim the education tax credit, then only the first $500 of awards is tax free. Amounts received in excess of $500 are reported on line 130 of your tax return.

Prior to 2006, if you were eligible to claim the education amount, then the first $3,000 of scholarships, fellowships, bursaries, study grants and artists’ project grants were not taxable. Your T4A slips reported the total scholarships or awards. You totalled the T4A slips, then reported this total less $3,000 (or zero if your awards total less than $3,000) on the tax return.

The education amount tax credit can be claimed for each whole or part month in which you were enrolled in a qualifying program at a designated educational institution. The educational institution must provide either a T2202 Education and Textbook Amounts Certificate, or a T2202A Tuition, Education and Textbook Amounts Certificate. The certificate will show the number of months you were enrolled in a qualifying educational program or a specified educational program. The amount that can be claimed is $400 per month for full time enrollment, or $120 per month for part time enrollment.

Tuition Tax Credit Canada

admin — Thu, 16 Sep 2010 16:39:39 +0000

The Tuition Tax Credits for tuition, education amounts and textbooks are non-refundable tax credits. There is a Federal tax credit as well as a provincial or territorial tax credit for tuition, education and textbook amounts. For this reason, to claim these amounts, or to transfer them to another person, you must complete both the Federal Schedule 11 of your tax return, and the provincial S(11) schedule. Québec uses Schedule T for tuition or examination fees being claimed or carried forward.

To claim the tuition tax credit, you must have received from the educational institution either an official tax receipt or a completed form T2202A, Tuition, Education and Textbook Amounts Certificate. If you paid less than $100 for the year to any particular educational institution, that amount is not claimable. Otherwise, the total tuition fees paid in the year are claimable. The costs of books, room and board, or student association fees cannot be claimed. If the fees were paid by your employer or the employer of one of your parents, then the costs are not deductible unless the reimbursed amount is included in your income or your parent’s income. Private school tuition fees for elementary and secondary students are generally not tax deductible.

The textbooks tax credit is an additional tax credit starting in 2006, similar to the education tax credit, for textbooks. This non-refundable tax credit is based on $65/month for full-time attendance or $20/month for part-time attendance.

If you do not have enough income to utilize your total tuition costs, education amount or textbooks amount, you can either carry forward these amounts to future years (no limit to carry-forward period), or you can transfer the costs to your spouse, common law partner, or to a parent or grandparent of you or your spouse or common law partner. The maximum amount that can be transferred to a parent or grandparent is $5,000, less the costs claimed by the student. This may still result in costs remaining that can be carried forward. The transfer of costs to another person should not be more than can be utilized on their tax return. Then any excess costs can still be carried forward.

Once unused costs have been carried forward, they cannot be transferred to anyone in a future year.