The largest single expense many Canadian consumers pay every year is their taxes
TORONTO, ONT, April 21, 2016 – It is tax time and for some consumers, this time of year can be a costly one especially when many Canadian consumers fail to take advantage of the common deductions and credits available to them.
When someone is strapped for cash, and they end up owing the government money, it can create some financial strain. In order to cope, some Canadians may have to steal from Peter to pay Paul to keep their finances in order. In 2012 alone, the average Canadian family with two or more individuals earned $74,113 and paid a total amount of $31,615 in taxes according to Stats Canada.
“Every year many Canadians do not take advantage of the discounts available to them when they are filing their taxes,” says Jeffrey Schwartz, Consolidated Credit Counseling Services of Canada. “And when a consumer fails to file common deductions they will end up paying more than they need to,” says Schwartz.
For Canadians looking to avoid over-paying their taxes this year, Consolidated Credit Counseling Services of Canada recommends the following tips:
1. Keep a running record of income and expenses throughout the year. Self-employed Canadians should write down tax deductible expenses as soon as they incur them. This way, when it is tax time, deductible expenses will not be missed.
2. Choose a charity and make a donation. For the first $200 of charitable donations, a consumer will receive a 15 per cent credit.
3. Childcare expenses are deductible. These expenses include daycare fees, boarding school, recreational activity fees etc. These can be deducted when either both spouses and/or a single parent are working on a full-time basis or when one spouse is in school for part or all of the year.
4. Self-employment expenses. If someone works from home, a consumer can claim a part of the expenses of the home where they conduct their business. This applies to homeowners and renters. A consumer just has to calculate the percentage of their living space they use for their business.
5. Moving expenses. If a consumer is employed and they move 40 kilometres closer to their place of work and incur such expenses as renting a van to move furniture, breaking a lease, meals and lodging – they may qualify for this deduction.
“Although many Canadian consumers end up over paying on their taxes – there are options available to them to lessen the burden on their wallets,” says Schwartz.
About Consolidated Credit Counseling Services of Canada, Inc.:
Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.
For more information or to request an interview with Jeffrey Schwartz, please contact:
Manager of Community and Public Relations
Consolidated Credit Counseling Services of Canada, Inc.
T: 416-915-7283 ext 1041