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This year, visit H&R Block and see if you qualify for the This year, visit H&R Block andcould see you the This year, visit H&R Block see ifif youqualify qualify for the new Family Tax Breaks. You claim up to anfor new FamilyTax TaxBreaks. Breaks. You could totoanan additional $2,000* whichYou could giveclaim you aup bigger refund. new Family could claim up additional $2,000* which could give bigger refund. With over$2,000* 50 years’ experience, we you don’t a thing. additional which could give youaamiss bigger refund. With over50 50years’ years’experience, experience, we With over wedon’t don’tmiss missa athing. thing. © H&R Block Canada, Inc. *Availability and amounts will vary according to each family’s specific circumstances. See an H&R Block tax specialist for details. © H&R Block Canada, Inc. *Availability and amounts will vary according to each family’s specific circumstances. See an H&R Block tax specialist for details. © H&R Block Canada, Inc.
*Availability and amounts will vary according to each family’s specific circumstances. See an H&R Block tax specialist for details.
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Disability may qualify for tax relief Canadians living with disabilities are eligible for a number of tax breaks designed to compensate for the extra expenses incurred. Even if you haven’t claimed your disability in the past, you may want to check if you qualify now. The guidelines have recently been modified to include more Canadians and we are able to adjust tax returns from 2005 – 2014 if necessary. While some firms charge an outrageous amount to help with the disability tax credit, H&R Block never charges a percentage fee to change a tax return, please see us first! What does ‘disabled’ mean? A disability is a severe impairment which makes it extremely difficult or time-consuming for you to carry out basic activities of daily living, even if you are undergoing therapy and using appropriate devices and medications. The impairment must last or be expected to last 12 months and severely restrict
your ability to see, walk, speak, hear or perform personal care activities or seriously affect your mental capacity to manage your personal affairs.
Tax Tip$ Tax Tips For Canadians Over 65 *Income split and save: Seniors are allowed to split up to half of their eligible pension income with a spouse or common-law partner. Income splitting allows some seniors to enjoy a significant tax reduction. In the situation where the lower-income spouse has very little income, the tax savings are substantial.
The definition also allows for the cumulative effect of multiple impairments that individually would not be severe enough to qualify. For example, a taxpayer with multiple sclerosis who constantly experiences fatigue, depressed mood and balance problems will probably now qualify. Additional modifications also make it easier for sufferers of Type 1 juvenile diabetes to claim the disability credit. Generally, diabetics only qualify if their condition requires “life-sustaining therapy” for at least three times a weeks
for a total of at least 14 hours. In the past, taxpayers who controlled their condition with a syringe generally did not qualify under this provision. This is because Canada Revenue Agency took into account only the time administering the insulin when determining if the 14hour requirement was met. However, the government has added the monitoring of blood sugar levels and dosage requirements to the types of activities that constitute therapy. As a result, more diabetics should now qualify. But before you start adding up your expenses, you must first file Form T2201 – the Disability Tax Credit Certificate – with your return. The form has to be completed by a doctor, optometrist, audiologist, occupational therapist, psychologist, physiotherapist or speech language pathologist and is used by the CRA to determine if your disability meets the prescribed requirements. What credits are available? For 2014, the basic federal disability claim is $7,766, which translates into a credit of roughly $1540 in BC. Because it is a non-refundable credit, it only works to reduce your tax payable – it is not refunded if you don’t have any tax owing. If you don’t use the entire
credit, you may be able to transfer it to someone else, such as a spouse or parent. For disabled children under 18, there is also a $4,530 supplement, which will increase the maximum federal claim to $12,296. However, this amount is reduced by child care expenses and attendant care expenses in excess of $2,654 that were claimed for the child. There are cases when taxpayers support a relative who does not meet the strict definition of “disabled,” but is still dependant by reason of an infirmity. Additional credits are available. Check the government’s guidelines on these deductions to make sure yours qualify.
A tax professional at H&R Block can talk about other credits and deductions that may affect you. We answer your tax questions for free. We have an office near you. This article provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this bulletin can be accepted by H&R Block Canada, Inc.
What’s new for your 2014 tax return There are changes that affect your tax return every year, and this year is no different. There are now more credits and deductions available to many Canadians.
equal to the tax savings realized from up to $50,000 worth of income being transferred from the higher income to the lower income spouse. The tax savings are capped, however, at a maximum of $2,000.
The Children’s Fitness Credit has doubled, so parents can now claim up to $1,000 per child. So if you have active kids under 16 in qualifying programs, you can claim more of their registration fees.
monthly Universal Child Care Benefit. The amount for children under the age of six will increase from $100 to $160 per month, and for children between six and 18, parents will start receiving $60 per month. Although the increases take effect in January 2015, parents will receive the increases for the first six months of the year as a lump sum payment in July. Make sure your children are registered for the Child Tax Benefit to start receiving the new, increased payment.
Parents will also get a bump in their
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The biggest winner from these changes will be Canadian families. The federal government announced a number of changes near the end of 2014 that will mean more money in the pockets of most families. The Family Tax Cut, which is a form of limited income splitting, provides a tax credit to families with children under the age of 18 that is
Get the be±t refund possible. refund possible. Maximum Refund Guarantee* Our Maximum Refund Guarantee* Our Maximum Refund Guarantee* ensures ensures you get all the deductions get all the deductions and credits you’re and credits you’re entitled to.
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rescue volunteers which is similar to the Volunteer Firefighters Tax Credit. The $3,000 personal amount translates into a $450 savings for search and rescue volunteers who work 200 hours or more. Unfortunately, you will no longer be able to claim safety deposit boxes as an investment expense in 2014. No one wants to pay more tax than they have to, so don’t miss a savings opportunity on your 2014 return.
Tax Tip$ Child Amount: Families will benefit from a $2,255 child amount for each child under the age of 18 for the last time in 2014. This will result in a federal tax saving of $338 per child. And if one parent cannot use the entire amount to lower their tax payable, the unused amount can be transferred to a spouse or common-law partner.
Tax Tip$ Artistic credit: The Children’s Arts Credit is another non-refundable credit worth up to $500 for children under the age of 16 enrolled in an eligible program. This could include language classes, Girl Guides or Scouts, art classes or ballet lessons. Again, keep your receipts to make the claim.
Keeping CRA Refund up to date on marital Our Maximum Guarantee* ensuresstatus you © H&R Block Canada, Inc. At participating offices. Some restrictions may apply. See office for details.*If H&R Block makes an error in the preparation of your tax return, that costs you any interest or penalties on additional taxes due, although we do not assume the liability for the additional taxes, we will reimburse you for the interest and penalties.
Once married, taxpayers can never file as There is no waiting period for married hrblock.ca |you’re 800-HRBLOCK (472-5625) get all the deductions and credits single again. If they separate or divorce people to be considered separated, but during hrblock.ca the year, their marital status is common-law partners must be apart for | 800-HRBLOCK (472-5625) entitled to. determined on December 31, even at least 90 days. Again, the December 31 more information, come in toif speak
A change in marital status can affect the benefits and credits that can be claimed on a tax return. Failing to keep the Canada Revenue Agency up to date can result in For a hefty tax bill.
© H&R Block Canada, Inc. At participating offices. Some restrictions may apply. See office for details.*If H&R Block makes an error in the preparation of your tax return, that costs you any interest or penalties on additional taxes due, although we do not assume the liability for the additional taxes, we will reimburse you for the interest and penalties.
they were married for most of the year.
rule applies in this situation. Common-
with an H&R Tax Professional today. For more information, comeBlock in to speak Taxpayers filing as separated or divorced law partners who separate after October Those who married inwith 2014an can breathe H&R Block Tax Professional today.
© H&R Block Canada, Inc. do not need to include their spouses’ net 1, 2014, have to wait for the 90 days to a sigh of relief: wedding gifts notfor details.*If At participating offices. Some restrictions may apply.are See office H&R Block makes an error in the preparation of your tax return, that costs you any interest or penalties on additional taxes although we do income ordue, social insurance number on expire before knowing for sure that they considered dotaxes, not need to you for not assume the income liability for theand additional we will reimburse the interest and penalties. file as separated at the end of the year. be reported. Marital status is determined their tax returns. on December 31 of the tax year; even common- The| CRA must be kept up to date on marital 800-HRBLOCK (472-5625) newlyweds file as married. Couples may The rules are slightly different forhrblock.ca law couples. A couple that has lived status, as it can affect benefits like the be able to pool receipts, like charitable together for 12 continuous months is Canada Child Tax Benefit (CCTB) and the donations and medical expenses, to considered common-law for tax purposes. GST/HST quarterly payment. The RC65 maximize deductions. For the firstFor timemore information, come in to speak you have children together, you are Form – Marital Status Change must be in 2014, the new Family Tax Cutwith allowsanIfH&R Block Tax Professional today. qualifying families to save when one spouse considered common-law as soon as you submitted to the CRA by the end of the month following a marital status change if earns considerably more than the other. begin living together.
you are receiving either of those benefits (except in the case of separation, in which case the 90-day waiting period applies). Those who receive benefits based on an incorrect status will be asked for repayment. It is important to note that the guidelines for marital status are specific, and the designation is not debatable. The CRA may consider a couple common-law even if other organizations or government bodies do not. The status is determined for tax purposes based on a set of rules, and Canadian taxpayers get no wiggle room in the decision.
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