Household Tax Tips 2014

Transcription

1 Household Tax Tips 2014 Christine Moore MP for Abitibi Témiscamingue Deputy critic for Health 33-A Gamble Street West, Suite RC-15, Rouyn-Noranda, QC J9X 2R3 Phone:

2 Contents 3 A message from Christine 6 Tax Tips for Students 7 Tax Tips for Home Owners 8 Tax Tips for Workers and Small Businesses 10 Tax Tips for You and Your Family 12 Tax Tips for Senior citizens 13 More Tax Tips 14 Important Phone Numbers 15 List of offices that help you complete your tax return Contact Christine Rouyn-Noranda 33A Gamble West Street Room RC-15 Rouyn-Noranda, QC J9X 2R3 Tel: Fax: La Sarre 29 route 111 East La Sarre, QC J9Z 1R8 Tel: Ville-Marie Centre Amitié-Témis 3 Industrielle Street, Room 7 Ville-Marie, QC J9V 1S3 Tel: Amos st Avenue West Suite 210 Amos, QC J9T 1V3 Tel: christine.moore@parl.gc.ca 2 Christine Moore

3 A Message From Christine It s that time of year again time for Canadians to sit down and file their taxes. Whether you do this job yourself, or have professional assistance, these tax tips may be of use to you. We ve consulted Revenue Canada to ensure they are accurate and up-to-date. Tax season is already stressful enough. But Conservative service cuts and sweeping changes at the Canada Revenue Agency (CRA) are only making matters worse. Some of these changes have left Canadians confused about how to access the basic information they need to file their taxes. At the same time, service counters have closed across the country and outreach sessions have been discontinued. Many of these changes target our most vulnerable citizens, including seniors, those with limited Internet access and people in remote areas. And this is just the latest example of Conservative cuts weakening the frontline services Canadians rely on. New Democrats strongly opposed these cuts. And we re here to help you navigate these confusing changes during tax season. In order to receive your refund as soon as possible, Revenue Canada suggests that the tax credits outlined in this booklet be claimed through their online filing system. This, coupled with the direct deposit option will, in most cases, help individuals receive their refund in as little as eight days, compared to four to six weeks for a paper return. 3

4 As mentioned above, the CRA is no longer automatically sending T1 General or Special Income Tax packages to people who do a paper return these are often available at Canada Post outlets. Alternatively, you can order your package online or by telephone. For more information, please call If you need further assistance and would like to speak to me or my staff, please call or christine.moore@parl.gc.ca. I look forward to hearing from you. Best wishes, Christine Moore, MP 4 Christine Moore

5 Getting Started I m happy to provide these helpful tips to ensure you maximize your tax return and put money back into your wallet. (Please keep in mind that these are only summaries. For more detailed information, please follow the links listed below.) Canada Revenue Agency (CRA) / Taxpayers Ombudsman The Taxpayers Ombudsman s role is to conduct impartial and independent reviews of servicerelated complaints about the CRA and facilitate taxpayer access to assistance within the CRA. Please remember that your 2014 tax return must be filed on or before April 30, In order to make use of all the various tax benefits, it s strongly advised that you file your tax return on time. Goods & Services Tax (GST) Credit The GST credit is a tax-free quarterly payment that helps individuals and families with low incomes offset all or part of the GST that they pay. Don t forget: to receive this credit you have to apply for it every year come tax time. Tax-Free Savings Account (TFSA) A Tax-Free Savings Account (TFSA) can help you while you work towards your short and long-term financial goals. A TFSA is a flexible, registered savings account: investment income, including capital gains, earned within the account is not taxed; and withdrawals are tax-free. Canadians who are 18 and older can contribute up to $5,500 each year. It s important to remember that withdrawn money can only be re-contributed in future years. It cannot be re-contributed in the same year without penalty. Contact your local bank or credit union or visit to learn more about this savings tool. Public Transit Tax Credit People across Canada who choose public transit are making the right choice for the environment and their wallet. Transit users can claim a nonrefundable tax credit of 15 per cent of the cost of their monthly or yearly passes. Any annual or monthly public transit passes that permit unlimited travel on local buses and trains qualify. For more details, please visit 5

6 Tax Tips for Students Interest paid on student loans can be eligible for a 15 per cent non-refundable tax credit. You can also carry the interest forward and apply it to a return for any of the next five years. This measure can offer relief to new graduates for several years. Lines of credit, personal loans, student loans that have been combined with another kind of loan, or student loans from another country are not eligible for this credit. Make sure you claim your tuition fees and education amounts. The education amount enables students to claim a nonrefundable credit of $400 per month of full-time study and $120 per month of part-time study. The student needs to be enrolled in a qualifying program at a designated educational institution. Additionally, eligible tuition fees can be claimed as a non-refundable credit. Make sure you get your tuition form from your educational institution. The amount for textbooks may be claimed by those who also claim the amount for education. Be sure to get the full benefit out of your credits. If you have used the amount for tuition fees, education and textbooks to reduce your own taxes, the unused part of your credit could be carried forward to a future year. 6 Christine Moore

7 Tax Tips for Home Owners You can deduct eligible moving expenses if you moved and established a new home to work or carry on a business at a new location, or if you move to study courses as a student in full-time attendance at a university, college or other educational institution that offers courses at a post-secondary school level. To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or educational institution. A comprehensive list of eligible expenses is available from the CRA, but includes travel expenses (e.g. vehicle and meal expenses), storage and transportation of household goods, temporary living expenses for up to 15 days, the cost to cancel a lease and the cost to sell your old residence (e.g., real estate commission) or purchase a new one. The home buyer s tax credit amounts to $750 and can be claimed by certain buyers who acquired a qualifying home. You can claim this amount only if you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years. To qualify, the home must be registered in your name and/ or your spouse s or common-law partner s name and be located in Canada. Single-family houses, semi-detached houses, townhouses, mobile homes, condominium units and apartments in duplexes, triplexes, fourplexes or apartment buildings can qualify. 7

8 Tax Tips for Workers and Small Businesses Working Income Tax Benefit The working income tax benefit is a refundable 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. Eligible individuals can apply for advance payments for this credit. Credits for Artists Artists can also deduct expenses they paid to earn employment income for artistic activities they engaged in. You could be eligible for this deduction if you composed a dramatic, musical or literary work; performed as an actor, dancer, singer or musician in a dramatic or musical work; or created an original painting, print, etching, drawing, sculpture or similar work of art. The amounts and types of expenses employed artists can deduct are listed on the CRA website. 8 Christine Moore

9 Credits for Tradespersons Employed tradespersons may be able to deduct the cost of eligible tools purchased in An eligible tool is a tool that (1) you bought to use in your job as a tradesperson and was not used for any purpose before you bought it; (2) your employer certified as being necessary for you to provide as a condition of, and for use in, your job as a tradesperson; and (3) is not an electronic communication device (like a cell phone) or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating or calculating). Apprentice mechanics can qualify for this deduction. Lower Taxes for Small Business Owners When a small business passes from one generation to the next, the property or shares are subject to Capital Gains Tax. The gross allowable lifetime limit is $750,000. Hiring Credit for Small Businesses Small businesses are a vital part of our economy, and crucial for job creation. The Hiring Credit for Small Businesses is a temporary credit of up to $1,000 against an increase in EI premiums over the previous year, to help small businesses expand and hire more workers. Apprenticeship Job Creation Tax Credit Employers who employ an eligible apprentice in a skilled trade in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government) can be eligible to receive a non-refundable tax credit equivalent to 10 per cent of the salaries and wages paid to the apprentice. This can translate into tax savings for an employer of up to $2,000 per eligible apprentice. 9

10 Tax Tips for You and Your Family Child care Tax Credit Taking care of a child is a rewarding and important responsibility. To make it a little easier on parents, they have the ability to deduct child care expenses from their income. These are amounts either you or another person paid to have someone look after an eligible child so that you or the other person can earn income from employment. The same applies when you or your partner is self-employed, attend school or do research work. Children s Art Tax Credit Kids are creative and full of ideas. To help tap into their talents, parents can claim expenses related to the cost of their child s registration or membership in an eligible artistic, cultural, recreational or developmental activity. Parents can claim a tax credit on up to $500 per child under the age of 16 against the fees for activities like art or music lessons. 10 Christine Moore

11 Children s Fitness Tax Credit Kids that participate in sports and team activities learn how to thrive together and live a healthy lifestyle. You can claim up to $500 per child under 16 for programs of physical activity, e.g. fees for sports and programs like ballet, hockey and soccer. These programs must be supervised, ongoing and suitable for children. Child Disability Benefit This annual benefit helps families with children with disabilities in a very tangible way. The annual maximum benefit is $2,650 for lowand moderate-income families. Registered Disability Savings Program The Registered Disability Savings Plan (RDSP) works essentially like a Registered Education Savings Plan (RESP). It s a great tool for families to save for their children s future. Canada Child Tax Benefit and National Child Benefit Supplement Low-and middle-income families can benefit from the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS). Information you provide on your income tax and benefit return is used to calculate your payments. Make sure you file your income tax and benefit return on time every year, even if you have no income to report. If you have a spouse or common-law partner, they also have to file an income tax and benefit return each year. 11

12 Tax Tips for Senior Citizens Age Tax Credit Seniors aged 65 or older with a net income less than $80,256 can claim up to $6,854. Seniors who earned more may still be eligible by transferring all or some of their age amount to their spouse. Attendant Care Tax Credit Seniors can claim attendant care or care in a nursing home as a medical expense. Eligible expenses include ones paid for yourself, your spouse or a dependant. Pension Income Splitting Pension Income Splitting allows any Canadian resident who receives qualifying pension income to allocate to their spouse (or commonlaw partner) with whom they reside up to one-half of that income. This way pensioners can reduce the taxes that they owe. Converting RRSPs to RRIFs Registered Retirement Savings Plans (RRSPs) are a great way to save for retirement as contributions are not taxable. You can wait till you are 71 before converting your RRSP into a Registered Retirement Income Fund (RRIF) and begin making withdrawals. Pension Income Amount The maximum amount of eligible pension income that can be claimed is $2,000. This non-refundable tax credit can help make a real difference for pensioners. Age Amount If you were 65 or older on December 31, 2014, and your net income for the year from all sources was $34,562 or less, enter $6,854. If your net income for the year was between $34,562 and $80,256, you will want to calculate a partial claim. 12 Christine Moore

13 More Tax Tips Disability Tax Credit If you have a serious and prolonged (at least 12 months) impairment in physical or mental functions, you can make use of the Disability Tax Credit, worth $7,697. A qualified practitioner needs to certify that your impairment qualifies and must complete Form T2201, Disability Tax Credit Certificate. If you are eligible for this credit but are unable to use all or part of it because you have no taxable income, you can transfer it to your spouse, common-law partner, or other supporting person. Amounts transferred from a dependant - if your dependant will not use all of his or her disability amount on his or her income tax return, enter the unused amount. Find the definition of a disabled person here: Family Caregiver Amount (FCA) This is a 15 per cent non-refundable tax credit in the amount of $2,058 that provides tax relief to caregivers of infirm dependant relatives. This includes: infirm spouses, common-law partners, and minor children. For more information, visit: The Volunteer Firefighters Tax Credit ($3,000) Available to any volunteer firefighter who serves at least 200 hours per year at one or more fire departments in their community. Caregiver Amount You may qualify for a Caregiver Amount of $4,530 for each dependant with a physical or mental impairment who lived with you. There are several conditions for qualifying caregivers and dependants. For more information, see: E/pub/tg/5000-g/5000-g-04-14e.html#P1211_

14 More Tax Tips Medical Expenses Tax Credit You can claim a long list of eligible medical expenses e.g. contact lenses, orthopaedics or prescription drugs which were paid for in 2014 and not claimed in You can claim any health care expenses that are in excess of $2,171 or 3 per cent of your personal income (whichever is smaller). There is no limit on the amount of expenses a taxpayer can claim for himor herself, a spouse or common-law partner, or a child under 18. There is also no claim limit for those who care for an aging parent, sibling or other relative. You can claim medical expenses paid in any 12-month period ending in 2014 and not claimed in Important Phone Numbers Tax-Related Phone Numbers Tax Information Phone Service (TIPS): Income Tax Enquiries: Taxpayers Ombudsman: Telerefund: Business and self-employed individuals: GST/HST credit for individuals: Canada Child Tax Benefit: Federal Offices Service Canada: Passport Canada: Immigration & Citizenship: Employment Insurance: Canada Pension Plan: Veterans Affairs: Christine Moore

15 List of offices that help you complete your tax return AMOS Accueil Amos 11 Mgr du Domaine boulevard Amos QC J9T 1S3 From March 11 to April 23, 2015 Each Wednesday and Thursday From 9:30 to 11:30AM and from 1 to 4PM Info : Gaby Tétreault / VILLE-MARIE Carrefour Jeunesse Emploi du Témiscamingue 4 St-Michel St., Ville-Marie QC J9V 2B5 From Feb. 27 to April 24, 2015 Each Friday from 9AM to 4PM Info : Alexandra Fortier-Demers ext. 242 ROUYN-NORANDA R.E.P.A.S 380 Richard Avenue Rouyn-Noranda QC J9X 4L3 From March 2 to April 30, 2015 Tuesday to Friday From 8:30 to 11:45AM and From 1 to 4:30PM Info : Chrystyan Jacques LA SARRE (info not available at the time of printing) Notes 15

16 Tom Mulcair and his wife Catherine Pinhas Tom Mulcair and MP Christine Moore