You are always hearing about tax credits which could make you feel a little better about having to pay taxes. The problem is you are only aware of maybe a few basic ones and you aren’t quite sure if there are any others that would be of benefit to you. The first thing you need to know is that there are two levels of credits. There are the Federal tax credits and then your Provincial tax credits. When it comes to the provincial ones they can be different for each province.
For those living in Toronto then the Ontario tax credits are the ones that should be reviewed to see what applies to you.
Many times the tax credits you are given are non refundable tax credits. This means you are not going to get them by way of a tax return. What they do is reduce your taxable income so you are paying less tax.
First take a look at the common ones which you are probably somewhat familiar with if you have ever attempted to do your own taxes. These are…
Basic exemption or your basic personal amount:
Everyone who has to file taxes is entitled to this credit.
Age Amount:
If you are over the age of 65 then you can claim this amount as well
Spouse or common-law partner amount:
If you are married or living common law and this individual makes less than a specified amount of money then you can claim this credit as well.
So as you can see by these more common tax credits most of them depend on your particular circumstances. There are many more depending on your situation.
Then there are the credits that you may not be aware of or have given much thought to.
Adoption expenses:
If you adopted a child then a certain amount of the expenses may be claimed as a credit
Ontario tax reduction:
If you fall into a lower income bracket you may be entitled for this credit.
All of the credits mentioned here are just a few of what may be available to you. There are many more of them and as mentioned they are all based on your personal circumstance. Many times if you are eligible for a Federal tax credit, then you will be eligible for it at a Provincial level, but will be required to do some calculations to determine the amount.
Another mistake that many people often make with their taxes is that they just assume that the potential credits that they may be eligible for each year remain the same. As said, your tax preparation is based on your circumstances for the applicable tax year, and situations change each year.
Utilizing my services as your Toronto Accountant will ensure that you are going to get all of the tax credits that apply to you, and your taxes will be completed in a professional manner, which means no hassles by the tax man.
