Tax Benefits for Having Children
Of course no parent decides to bring children into their lives just because there may be some tax benefits from having kids. Also, these tax incentives for families with children should not go unclaimed. Yet in many cases some families do miss out on the potential tax credits that they are eligible for.
This can happen because they have prepared their own tax returns, and are not familiar with the tax laws as they pertain to them. Or they may have used a tax preparer that is not up to date with all of the potential tax credits that are available to families with children.
It all begins with the birth of the youngster. If you gave birth during the given tax year you may have had some medical expenses that were not covered by your health insurance. If you utilized pre-natal care these costs may have been out of the scope of your insurance, but you may be able to claim them as a medical expense on your tax return.
When you register the birth of your child, check to see if you can apply for the child benefits at this time, and don’t forget about the family tax cut.
While these are the most common incentives that most people are aware of then are a few other incentives that you need to keep in mind. You need to apply for a social insurance number for your youngster. Contrary to the belief that this should only be done when the child is ready to work, there are other needs for it. It is needed if you are going to become active as a contributor for a RESP.
Don’t forget to take advantage of both the Federal and Provincial tax credits. Each on their own may not see that substantial, but combined they can give you some really good tax savings.
Something else that you may not be giving much thought to is the children’s fitness tax credit, and the children’s art credit.
Also, be sure to check out if you are eligible for the national child benefit supplement. This tops up the child tax benefit for low income families with children under 18.
If the Canada tax system were not so complex and intricate it really would be much easier to be aware of what tax benefits may be available to you. Unfortunately it’s not and it is so frustrating for parents trying to look for all the potential breaks it’s like looking for a needle in a haystack. For this reason many families just give up trying to utilize everything in the tax arena that might be beneficial t them, and they just go with the ones that are the easiest and most recognizable.
Using a tax accountant to prepare your taxes for you is one of the best stress tax relievers that you could possible take advantage of. Most everyone hates having to do taxes, but the thought of possibly missing out on potential tax breaks makes it even more frustrating.