Life Circumstances May Lead To Tax breaks

One guarantee we all have in life is “change”. Depending on the change, some circumstances could significantly affect your tax outcome.

The following list relates to Canadian Federal Taxes as each province has their own set of tax rules that may affect each category differently.

You got Married!

For some, marriage comes with a few significant tax breaks. When you and your spouse jointly file, you may both benefit from;

  • A lower tax rate
  • Higher deductions
  • A few exemptions

In some circumstances, your taxes may increase. Check with your CPA (Chartered Professional Accountant) what is currently best for you and your spouse.

Here is a Canada Revenue Agency (CRA) link to update your marital status

Children

Children are expensive to raise. CRA recognizes this and helps families by providing tax breaks to help reduce their tax rates. For 2019 childcare expenses you can claim;

  • Child care expenses
  • Child disability benefit
  • Working income tax benefit

Each tax break has certain criteria a family needs to meet for each benefit, credit, or deduction.

To learn more click here CRA link child tax breaks

Eligible Dependent

The CRA offers a caregiver amount or caregiver tax credit when you have a dependent living in your home. The dependent(s) may be related to you, your spouse or common-law partner. The dependent(s) must be 18 years or older with a physical or mental impairment. This also applies if you have a parent or grandparent living with you and requires special care.

It is important to point out there are specific criteria CRA requires you to meet to claim a dependent living in your home.

CRA link eligible dependent  

Educational Expenses

The cost associated with a higher education is an investment to opening doors towards job opportunities, career advancement, and to increase your bottom line.

In the CRA rules for 2019 a student can transfer tuition to a parent or grandparent. A student can also transfer to a spouse or common-law partner.

Each situation has specific criteria to meet. One criteria is only one person is able to claim transfer from a student.

CRA link claim transfer  

Moving Expense

Moving expenses can be claimed when your new location meets CRA requirements.

  • Moving closer to your place of employment
  • To run a business
  • Business relocation
  • Full time post-secondary studies

CRA allows you to claim when selling your home

  • Moving and storage fees
  • Renting a truck
  • Hiring movers
  • Meals an hotel charges

If you are an employee, self-employed, or a student, CRA has specific criteria for each circumstance.

CRA link Moving Expense

There are many other potential tax benefits you may qualify to claim on your income tax return. Contact us if you have any questions regarding the possibility CRA may provide tax breaks for other life circumstances.

If you have any questions or would like to schedule a complimentary appointment, please contact us at info@bankaco.com or phone 250-763-4528.



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