Tax Credits and Deductions for taxpayers in Pickering

The personal tax return T1 has over 25 different tax credits and deductions allowable to reduce your personal tax bill.    How do you keep track of them all and ensure you properly qualify?

Personal Income Tax in Canada is not simple nor straightforward.   Each successive government has tinkered with the Income Tax Act in their own way, particularly when it comes to allowable tax credits and deductions.    Some policies were designed to raise or lower the income tax rate but the majority were meant to reward or tax specific groups or activities in the tax base.  At its most partisan, tax credits and deductions were laser focused to benefit the governing party’s electoral base such as the middle class or people of a certain area.

It’s useful to think of the Income tax Act as a one room schoolhouse that has grown through successive additions to become a sprawling university with different divisions for personal, self-employed, payroll, HST and Corporate Taxes.    Each successive Canadian government has added to the tax regulations through tiers, credits and benefits.

25 Tax Credits and Deductions Available

We’ve put together the following 25 most common tax credits and deductions to provide a starting point for discussion.  Taxpayers should be advised that the CRA regularly conducts integrity and matching programs; sometime post or pre-assessment, CRA will give you 30 days to provide adequate documentation to support your claim.    Your claim for the credit will be automatically denied if you don’t respond, don’t provide exactly what was required or cannot explain your claim.    In most cases, we can provide the CRA with the required back up for you before you’ve picked up your copy of the letter from CRA.

The list of all deductions and credits available is long and this list should not be considered exhaustive.

  1. Deduction for Business Use of Home
  2. Automobile used for Business
  3. Child Care
  4. Moving expenses
  5. HST Tax Credit
  6. Child Tax Benefit
  7. Universal Child Care Benefit
  8. Spousal and Children’s Tax Credits
  9. Tuition Credits transferred from your children
  10. Working Income Tax Benefit
  11. Union Dues
  12. RRSP Contributions
  13. RPP Deductions
  14. Children’s Fitness Tax Credit
  15. Arts Tax Credits
  16. Ontario Trillium Benefit
  17. Disability Tax Credit
  18. Adoption Tax Credit
  19. Caregiver Tax Credit
  20. Alimony Deduction
  21. Professional Fees
  22. Interest Paid to Earn Income or Invest
  23. Clergy Residence
  24. Home Relocation Loans
  25. Allowable Business Investment Losses

Speak to us about whether your business and family may qualify for the above.

You can reach us by calling (905)-430-8000 or use our confidential Contact Form or visit us!

 

James Abbott, CPA and Associates

1730 McPherson Court, Unit 1
Pickering, Ontario L1W 3E6
Phone: 905-831-6383
Email: james@jacpa.ca

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