It is no secret that in order to make money you have to spend money. The complaint that going to work to try and earn income costs money is common, and sometimes these costs put a big bite into the take home pay cheque. A Toronto accountant can help you to determine if you qualify for the Working Income Tax Benefit (WITB).
Many times the tax credits that are available to us are not refundable. In other words it means that the credits we are eligible for will reduce our tax responsibilities but don’t actually put money in our pockets. The WITB credit is a refundable tax credit. It’s main purpose is to assist those who have a low income, or to entice those currently not working to enter into the workforce.
The amount you receive will depend on your particular circumstance and it varies in each province. You do have to be able to qualify for this credit. It will depend on the amount of income you are receiving as well as some other criteria. It is also available for couples provided they also meet the criteria. Only one of the couple may apply for the couple’s WITB credit.
You have to be earning a specific amount of income to also qualify and in most cases this is above $3,000.
Many individuals especially those that are just entering back into the work force or have a low income tend to want to try and save money by doing their own tax returns. All too often what ends up happening is they lose out on the potential tax credits such as this. It can happen simply because people are not aware of them, or they just find it too complex to determine if they are eligible and how to claim for them. This is just one of many reasons why making use of a Toronto tax accountant is so important.
Each tax credit that is available to Canadians may not seem much on their own, but if you can qualify for several they do add up. They can make a significant difference to how tax you have to pay, and in a case like this with the WITB you can actually get a few extra dollars in hand to help offset the costs of working.
Also, if you are coping with a disability as well, then your accountant may be able to advise you as to whether you can additionally qualify for the disability supplement.
Fill out our consultation form and let’s see if this is a tax credit that may be applicable to you.
