What Do Many People Miss Out on For Tax Credits?
Now that tax season is over at least for filing, some people wonder what may they have missed out in respect to potential tax credits that they may have met the criteria for. Then there are others who simply do not want to take the time to research what may be available to them as they don’t feel that these types of credits really make any significant difference in their favour. Others are not even aware that they may be ways that they can reduce their tax obligations.
One very common tax credit that is forgotten about is the equivalent to spouse credit. This is a non refundable tax credit that can end up helping to reduce the taxes that you owed. It is in place for those that are single, divorced or are separated. It is used the same way as the spousal credit but it does come with some restrictions. Basically it allows the tax payer to claim one of their dependents as an equivalent to spouse credit.
There are tons of people with kind hearts that throughout the year make various charitable donations. When these are done spread out over a period of time, it is often forgotten that they be eligible as a tax credit, according to the criteria set out by the CRA regarding these. What some don’t realize is that spouses may be able to combine their contributions so they can get the maximum tax break, plus these contribution claims can be carried forward five years if they are not needed for the current tax year.
Claiming child care expenses can sometimes become a little confusing and rather than try and sort it out the taxpayer will just forget about adding this expense to their tax return. This combined with other potential credits can make a real difference to your tax situation, and it should not just be forgotten about. Some parents who have gone back to school don’t realize that they also may be eligible for this expense thinking that it is only applicable for working parents.
The biggest problem with tax credits is they often come with restrictions which many people don’t understand and they just want to get their taxes filed and done with. More people are now utilizing the services of an accountant now because they are beginning to realize that there are so many potential tax breaks that may be available to them that it justifies having a professional tax preparer complete their tax return for them.