Tax laws changes always cause concern and confusion and sometimes frustration. It’s best to keep on top of what the new tax laws are so that you can maximize your write offs. The following tax write offs are often missed.
1. Employment Expenses
If you are salaried or commissioned and you are required to pay for expenses during the course of your employment, you may be able to deduct these costs. Some of the expenses that qualify are:
Office rent or work space in the home
You must receive a signed form T2200 Declaration of Conditions of Employment in order to claim these expenses on your personal income tax return.
2. Union or Professional Dues
If you are required to pay annual fees to a professional association or union, these are deductible against income earned.
In cases of medical or legal professions, a deduction can be made for malpractice or professional insurance.
3. Interest Paid on Student Loans
In order for interest on a student loan to qualify as a deduction, the loan must have been received under the Canada Student Loans Act or the Canada Student Financial Assistance Act.
If a personal loan or line of credit was used to pay for tuition, the interest incurred is not deductible. You can choose not to claim the interest in the year it was incurred if you don’t have enough income. It can be carried forward for up to five years.
4. Child Disability Benefit
If your child qualifies for the disability tax credit and you are already receiving the Canada child tax benefit, you may also be eligible to receive the child disability benefit. This benefit is dependent on total family income and the child must be under 18 years of age.
5. Medical Expenses
There has been an increase in gluten intolerance and the Canada Revenue Agency has included this as part of what qualifies for a medical expense.
The allowable amount is the difference between the cost of the gluten free item and the cost of the non-gluten free item. In order to claim this you must have the following documentation should CRA request it.
A doctor’s note confirming celiac disease and that gluten free food is required.
Receipts for the purchase of each product.
Summary of each item purchased during the 12 months claimed.
6. Tutoring Services
The tutoring expenses provided for a child with a learning disability may be tax deductible. A doctor’s letter stating that the tutoring is required must be provided to CRA. It is important to note that the tutor cannot be related to the child.
Arrange a free consultation with me, Carmela CPA!
Please email or call me to make an appointment.