Know your Tax Credits

Today we discuss the tax credits that you should be discussing with your accountant before you finalize your 2016 taxes. The rule is simple. The more you know about tax credits means that discuss more with your tax professional and thus pay less in taxes.

Here are the credits that you may be eligible to claim this tax season:

Moving Expenses

If you moved this year for a new job, make sure tor take a record of all your expenses to your accountant as he can claim moving expenses on your tax return.

Medical Expenses:

While it is common knowledge that Canadian taxpayers can claim medical expenses on their returns but it is important to know what expenses you can claim. A lot of people miss out on the travellers’ medical insurance that they buy when travelling abroad.

You can also claim expenses incurred on fertility treatments that are otherwise not covered by any insurance plan.

Home Renovation Expenses for Seniors and People with Disability:

If you are a senior or already approved for disability tax credit, you can claim any expenses incurred for increasing the accessibility in your house. This includes expenses like stair lifts.

Credits for Teachers

Starting 2016, teachers can claim expenses incurred on supplies for school up to $1000. So, if you are a certified teacher or early childhood educator, make sure you take advantage of this tax credit.

We at Softron, have trained our professional staff to ensure that we do not miss any tax credits for all our clients. It is always more expensive to miss out on tax credits than paying a professional who can save you the most on taxes

Call 905-273-4444 or visit www.softrontax.com/location to finalize your taxes.

Did you file yet ?

The tax season is coming to an end. The deadline is May 2nd and here is why you should never miss the deadline:

  • The CRA charges interest and late filing penalties to taxpayers who owe money to CRA on their taxes at the end of the year. So filing late means paying lots of extra money to the taxman just for being lazy.
  • The CRA does not pay any interest on the refund it owes you. So file your taxes at the earliest and put “your” money to good use. You can use your refunds for paying off debts or invest it for future savings.
  • If you qualify for receiving benefits like HST credit, Ontario Trillium benefit or the Canada child benefit , it is in your interest to file on time and and ensure that your benefit payments are not delayed

A lot of tax payers struggle until the last moment because of missing slips. Professionals at Softron tax are authorized to access the information slips from the Canada Revenue Agency.

So Do not wait for:

  1. Missing T4 slips from your employers
  2. Missing RRSP contribution receipts
  3. Missing T3 or T5 slips from your financial institutions

So what should you bring to your tax consultant when filing your taxes?

  1. Medical expense receipts
  2. Moving expenses claims
  3. Donation receipts
  4. Public transit passes or presto usage reports
  5. Rent receipts
  6. Receipts for money paid for Arts or fitness/sports activities for your children
  7. Documents relating to purchase of a new home in the last year

Just bring what you wish to claim and leave the rest to us! File today to avoid any potential financial or legal problems later.

Let’s do it right! Let’s do it now

Ontario Budget 2015: Promises, Few good steps and a Mountain of Debt

The Ontario 2015 budget was presented last week and while a few new projects were announced, the highlight of the budget remained the high deficit which currently sits at $8.5 billion. While the projections have been made for a balanced budget by 2018, the government plans to achieve most of it through spending cuts. However the budget proposes increase in spending in some key areas like infrastructure and public transit.

Following are the key points of the 2015 provincial budget:

  • OSAP Reforms for Students: The students will not have to deduct the value of their car or the part time work income when they apply for the Student loan. Also the maximum OSAP cap will be indexed to inflation for the future. The government will also be allowing to apply for OSAP grants and loan separately. This means that students can apply for grants while still having a choice of not taking on the debt for their education
  • Winning with winter tires: The government will make it mandatory for the insurance companies to give a discount to the drivers that use winter tires. Also the insurance companies will not be allowed to increase the premium for minor accidents that do not cause any serious injury
  • In the works….: The new projects that were announced in the budget include building of 8 new schools (six elementary and 2 secondary) and a new mega court for the GTA merging the provincial court houses which will consolidate operations for Ontario court of Justice and Superior court of justice The government will also be spending $11.9 billion on infrastructure development which is part of the $130 billion spending plan over 10 years.
  • The Promises: A few measures were announced in the budget where the details were limited. The Ontario Pension Plan will be established in January 2017 but the details on how it will work are yet to be announced. Similarly a plan to build a high speed train between Toronto and Windsor was announced with no time line or commitment.
  • Caring for the Sharing economy: The government renewed its commitment to support and help business like UBER which promote the sharing economy by helping them comply with the regulations
  • Power to the Nurses: A major step was announced where the nurse practitioners would be able to refer patients to the specialists. This is great news for Northern Ontario and some rural areas where primary care is provided by nurse practitioners as opposed to general physicians.

The government will also continue with the wage freeze in the public sector. However it remains to be seen that how the government will achieve the $4 billion deficit reduction projected for this fiscal year. A $2.8 billion “other programs cut” has been announced with no details and some revenue will be generated by selling off assets.