Your Child’s Exercise Could Save You Tax Money
There isn’t much good that can be said about having to get your taxes done, except that perhaps when doing them it will bring to light some of the potential tax credits that may be available to you, that you are as of yet not taking advantage of. This is where using a tax accountant can often be beneficial to you. For example, you may be claiming children on your tax return, and your accountant will ask you if they were in any type of activity during the tax year that could be used towards the children’s fitness tax credit or perhaps the children’s arts tax credit.
There are times when the various government departments do try to get on the same page and serve a dual purpose which can be advantageous to both of them and the tax payer as well. These two potential tax credits may be one of those instances.
For example, Health Canada has become concerned about the obesity in children and is encouraging parents to get the kids involved in more physical activity. With the CRA offering a tax incentive for this it gives a little extra boost to the encouragement. Not to mention that it is a way of looking into the future by the government on cutting down health care costs for obese related illnesses that could occur as these young ones enter into adulthood.
Then in addition to this there is the children’s arts tax credit. This too may have an additional governmental purpose to it other than giving you a tax break. The arts is something that the government is keen on promoting.
All too often many tax payers become so frustrated with the complexity of having to fill out their tax returns that they just want to get it done and over with as quick as possible. As a result they don’t take the time to really study all of the potential tax credits that may be available to them. They may be familiar with one or two of them and feel that they offer such small amounts and are not refundable credits so why bother.
If you were to take all the potential tax credits that may be applicable to you and combine them all together for your tax return, you may discover that they do in fact add up to a substantial amount and can reduce your tax rate.
This is one of the many reasons that many tax payers rely on Sam Seidman as their Toronto Accountant because he is intent on getting his clients as many tax breaks as possible.