The deadline to file personal income taxes for the 2016 calendar year is April 30.
Here are five common deductions that you may claim this year:
1. Charitable Donations
Giving back to charity helps those in need and offers financial benefits for the donor. Donations over $10 are eligible for a tax receipt and can be claimed on a personal income tax return. Please keep track of fundraising and donations to registered charities throughout the year.
2. Medical Expenses
If you incur out-of-pocket medical expenses throughout the year, you can claim the amount on your income taxes for a partial refund up to a maximum amount. If you have private health insurance individually or through a group plan with your employer, you can claim any medical expense amounts that were not refunded by the insurance company.
3. Childcare Expenses
Every little bit of savings helps when you’re a parent. If you have children, you can claim expenses that were incurred for child care services provided in 2016 on the tax form. If you receive a refund for these expenses, they can invest the money in a Registered Education Savings Plan(RESP) for your child’s education and receive Government Grants.
4. Investment Contributions
Although saving for retirement benefits you in the long term, it can also have a short-term impact on your taxes, in the form of a lower taxable income and a potential tax refund. If you contribute to an employee pension, you can take advantage of pension income credits. Contributors to a personal or group RRSP plan can also claim those contributions to lessen their tax bill.
5. Disability Credits
If you are disabled or care for someone who is disabled, you may be eligible to claim disability tax credits. Please use form T2201 to apply for the Disability Tax Credit and receive the benefits. If you are eligible, you can also take advantage of a Registered Disability Savings Plan(RDSP) to help save for the financial well-being of the disabled person.
Mackenzie Investments Post March 7 2017