 As the countdown to the dreaded income tax deadline of April 30, 2007
continues in Canada, there is still time to review your entire return
before e-filing or mailing it off to the Canadian taxman. It's always a
good idea to completely check over your tax returns ... and then recheck
them one more time to maximize your deductions. Canadian tax tips can minimize your tax bill.
Tax Questions to Ask to Maximize Canadian Tax Deductions
Every Canadian wants to minimize the amount of money paid to Ottawa for their annual federal and provincial taxes. So how do you know if you are entitled to additional tax deductions? If you answer yes to the following questions, there is a good chance you may be able reduce your tax bill in Canada:
Tax tips buried in questions and answers
1. Do you have any "carry-over deductions" from prior tax years such as Registered Retirement Savings Plans, charitable donations, unused tuition fees or student loan interest, home office expenses, LSVC credits, net capital losses or non-capital losses?
2. Did you contribute towards an RRSP in 2006 or within first 60 days of 2007?
3. Did you pay any fees to a union or professional organization?
4. Did you make any payments for childcare?
5. Did you make any attendant care expenses?
6. Did you invest in any companies that have gone bankrupt?
7. Did you sell any investments at a loss?
8. Did you move more than 60 kilometres to change employment or self-employment?
9. Did you pay for a bank or credit union safe deposit box in Canada?
10. Did you pay interest on any loan taken out for investment purposes?
11. Did you pay for investment accounting?
12. Did you pay court-mandated alimony or support payments?
13. Did you use your vehicle to travel for your work or buy monthly or annual transit passes?
14. Did you have an office at home?
15. Did you pay legal fees to enforce payment of alimony or maintenance?
16. Did you pay legal fees to enforce payment of wages?
17. Did you repay any Employment Insurance payments?
18. Did you receive an allowance for a clergyman's residence?
19. Did you receive an allowance from your employer for auto expenses?
20. Did you live in a remote northern location in Canada and receive travel allowances?
21. Are you a partner in a same sex relationship?
22. Are you married or living common law?
23. Are you single and did you support a dependent?
24. Are you or your spouse/partner over 65?
25. Did you or your spouse/partner receive pension income?
26. Are you or your spouse/partner disabled?
27. Are any of your dependents disabled?
28. Did you pay interest on your student loan?
29. Did you or your spouse/partner or dependents pay tuition fees?
30. Did you have any medical expenses?
31. Did you make payments to a health plan at work or privately?
32. Did you make any donations to a registered Canadian charity?
33. Did you make any donations to a registered political party in Canada?
34. Did you make any labour-sponsored funds?
35. Did you have any self-employed income?
36. Did you hire an assistant?
37. Did you pay for supplies used in your work
38. Were you paid in part by commissions?
Answers to These Questions May Minimize Your Canadian Tax Bill
If you answered yes to one or more of these questions, you want to investigate the possible deductions more fully. The Canada Revenue Agency (CRA-ARC) Agence du Revenu du Canada has complete outlines on each available tax deduction to Canadians. Dr. Tax also helps Canadian taxpayers maximize their deductions and minimize their taxes by preparing and filing your tax return online through uFile (English) or Impotweb (Francais). For a very small fee of just $15.95 for individual returns or $24.95 for family returns, you may discover tax savings that exceed that small cost of e-filing electronically. Check it out as soon as possible!
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