It is not easy being a single parent, and yet they too have the same tax obligations as any tax payer. It is just as important for the single Mom or Dad to know what these responsibilities are, and if the other parent is involved with the children, then who gets what tax credit concerning the young ones.
Ideally both parents should use an experienced accountant to assist them with their tax preparation to be sure that all of the potential benefits are maximized.
Financially it can be tough raising kids especially if there is only one income and no other financial assistance. The kids want to be involved in activities aside from school and these do cost money. The Canada government has recognized this, and has put in place some help for paying for these via potential credits. For example, enrolling a child in sports even if it is community supported often comes with some types of fees. You as the parent may be able to claim a maximum of $500. under the sports and fitness credit. There are certain rules that must be met in order to qualify for this credit, but it just may be the answer to finding those extra dollars that may be needed.
If both parents are involved with the children and there is shared custody, it may come down to deciding who is going to be able to claim this amount. There is an option that either one of the parents to agree on who is going to claim it, or it can be split, however the maximum amount of $500. in total remains in place.
This is just one example of how you can make your taxes work for you as a single parent. Another big concern is day care costs. One benefit you have is being able to claim your child care expenses as a deduction against your taxed income, and not just apply it as a credit. Again there are maximum amounts in place that you can claim, and it may not seem like you are going to realize any significant tax savings, but when you add them all of then it does make a difference.
Rather than lose out on any potential savings that you can enjoy from having your taxes done properly, it is better to invest in the small price it costs to have your taxes prepared by a qualified tax accountant. Be sure to give Sam Seidman a call here at Toronto Accountant who will be glad to assist you with your single parent taxes.
