When it comes to filing your taxes in Canada, you’ve got to be smart. This is not the place to cut corners or try to minimize details. You’ll need to be completely honest while also being quick to take advantage of potential breaks. Here are 5 handy tips for filing your taxes and getting as much money as possible back.
1. File Your Taxes on the Web
The first thing you should be aware of is the fact that you can file your taxes straight over the world wide web. You can take advantage of an electronic Canada tax filing system to do so. This will enable you to quickly calculate the amount of your taxes as well as your refund if you are subject to one.
This is by far the best way to file your taxes from the year. Doing so will allow you to complete this tax without ever having to leave the comfort and safety of your home or office. You won’t have to risk being out and about during the time of a global pandemic. You can also be assured of a much quicker refund on your taxes.
2. You Can Use a Tax Calculator
Being able to make use of a Canadian tax calculator is a major innovation that you should definitely take full advantage of. This is a convenience that will allow you to tabulate the exact amount of the tax that you owe for the year. It’s quick and easy to use and will enable you to plan your reaction accordingly.
3. Deduct Your Child Care Expenses
Were you aware that you will be able to deduct all of the expenses you have incurred through the care of your children? This is a figure that could save you a very significant amount of money on your next tax return. The limit that you will be able to claim for eligible children born in the year 2012 or after will be $8,000.
You should also be aware that the limit you are eligible to claim for children born between 2002 and 2011 will be $5,000. This can include the amount of money you have spent on overnight and summer camps. It can also include the total figure you have spent for daycare, in-home providers, and a number of other child care conveniences.
4. Deduct Your Moving Expenses
Another key way in which you can help to maximize your tax return is to deduct all of your moving expenses. Doing so could save you a very sizable chunk of change. There are any number of circumstances that you should pay attention to while moving. These may entail expenses that you may be able to deduct at tax time.
Some of these expenses may include the cost of meals and overnight hotel or motel accommodations for you and your family. You may also be able to deduct other types of expenses including the total cost of the title transfer for your new home. You may even be able to deduct the cost of changing your address on various documents.
5. Deduct Your Home Office Costs
As of 2021, millions of people all around the world are having to adjust to the reality of working from home. This means that you may well have had to establish an office in your home. You should be aware that there are a number of expenses you have incurred that will be deductible at tax time.
These expenses used to be calculated using a standard T2200 form. However, there is now a flat rate that will allow people who have worked from home 50 percent of the time for four consecutive weeks to claim $2 per day up to a maximum of $400.
The Time to Save on Your Taxes is Now
The deadline to file your taxes in Canada is coming soon. It will be up to you to be fully prepared to meet this crucial deadline. If you play your cards right, there are a great many advantages that you can use to maximize your return. Filing taxes on the web will be the best way to ensure that you receive your refund in a timely manner.