Saving Money
Taxes: Save Money, Solve Problems
Medical Expenses – Non-reimbursed medical expenses can be claimed as a non-refundable tax credit. Medical expenses may also be claimed for dependants other than a spouse or common-law partner. There is a lengthy list of expenses that qualify under the medical expense category. A few examples include attendant care for the disabled, medical devices to assist with persons with impaired sight or hearing, and reasonable travel expenses incurred to obtain medical care. A full list can be found at the CRA website (www.cra-arc.gc.ca).Dividend Income – The dividend income deduction allows couples with such income to transfer the income to the higher earning spouse to avoid the taxation on the lower income in the household.
Disability Credits- A federal tax credit of 16% on $6,279, or $1,005, is available for taxpayers with severe and prolonged mental or physical infirmity.
Pension Income Credit – If you receive a pension income, a 16% federal tax credit and a 6.05% Ontario provincial tax credit on up to $1000 of eligible pension income is available. If the pension is from an employer’s plan, you are eligible regardless of age; otherwise, in the case of an RRSP or RRIF withdrawal or an annuity, you must be at least 65. If you can’t use the credit, it can be transferred to your spouse.
Carrying Charges – These include a variety of expenses associated with finance charges and investment expenses, such as interest on loans for investment purposes, interest charged on the purchase of Canada Savings Bonds through your employer’s payroll deduction plans, the cost of renting out a safety deposit box, and fees paid to financial planners and investment advisors.
Moving Expenses - If you moved within Canada, your moving expenses may be tax deductible. You must be employed and your new location must be at 40 kilometres closer to your place of work. Expenses that can be claimed include hiring movers, renting a van to move yourself, breaking a lease, furniture storage, meals and lodging for you and your family while traveling and legal fees and real estate commissions if you have to sell your home.
Self-employment Expenses – If you are using your house as part of your business, you can claim a deduction for the part of your home that is so used to conduct business activities. This applies if you own or rent your home and should be calculated based on the percentage of your living space that utilized for your business.
