Tax software programs, like UFile, are great tools to help you calculate your tax return and ensure you receive the tax refund you are entitled to. It can find you tax-saving deductions, credits, and transfers, but you need to give it something to work with – no computer program can read your mind…yet.
So, how do you know you aren’t missing out on great tax credits? We’ve made a list of the most commonly forgotten tax credits that will help you keep more cash in your pockets:
- Tax Credit for Public Transit: Are you a Public Transit user? Hold on to your weekly or monthly passes and receipts and be sure to claim the Public Transit amount for the entire year. This amount may be claimed for transit used by you, your spouse, or children under the age of 19. This non-refundable credit is worth up to 15 per cent of the total claimed.
- Self Employment Business Expenses: Working from home can mean substantial tax savings. When you have a home office that is clearly set apart from the rest of your home, and you have no office space dedicated to you by your employer, you may claim home office expenses such as electricity and heating according to the space used by your office.
- Interest Paid on Student Loans: Get a receipt for the interest charged on approved provincial and federal student loans. If you can’t use the deduction on this year’s tax return, tax software like UFile is designed to carry forward and use the balance of interest in future years.
- Children’s Fitness Tax Credit: If your child is enrolled in sports or other physical activity programs, you may be entitled to a non-refundable tax credit of up to $500.00. Children under 16 and disabled children under 18 years are eligible.
- Children’s Arts Tax Credit: Starting in tax year 2011, you also may be entitled to a non-refundable tax credit of up to $500.00 per child if your children are enrolled in arts and creative programs including wilderness, nature and educational programs.
In case you miss something, tax software can also help find additional deductions and credits for you. UFile’s MaxBack Refund Analyzer will automatically find your credits related to your age, your employment and your pension income.
Quality tax software will even carry forward amounts that you can use in the future. Specifically, your RRSP balance, refundable tax credits, and tuition or student loan amounts are valuable items that can reduce tax in future years if you cannot claim them in the current one.
This post was provided by UFile, if you would like to see what your return will look like, log on to www.drtax.ca/ufile and plug in your information. You will be shown what your return will be, and then you can choose to pay and file. It’s just that easy. It won’t read your mind, but it won’t make it work very hard, either.