It’s tax time and ALL Accounting Services has some tax tips!

March 10, 2016

Yup it’s that time of year again. Time to file your income tax return before the April 30 deadline and to answer the always fearful question, am I getting a refund? Or do I, gulp, owe the government more money?? As if us moms don’t already have enough on our plate.

The good news…. we can help lessen the burden and make sure you are maximizing all of the tax claims that are available to you and your family. Income tax filing has become much more complex as changes continue to happen every year. If you are not up to date with all these changes you could be missing out on some pretty significant tax credits.

Here is a summary of some information families should be aware of before filing their income tax returns:

Marital Status: It is very important to understand Canada Revenue Agency’s definitions in regards to marital status. Some of the child benefits available to families are calculated based on family net income, so whether or not you have a spouse or common-law partner can drastically affect your benefit entitlement.

By definition, a spouse applies only to a person to whom you are legally married.

A common-law partner applies to a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situation applies. He or she:has been living with you in a conjugal relationship, and this current relationship has lasted at least 12 continuous months; is the parent of your child by birth or adoption. This means if you already live together but have not met the previous definition of common law, you will be considered common law by CRA definition the day your child is born. If you have a child but still do not live together, you do not meet the definition of common law ; has custody and control of your child and your child is wholly dependent on that person for support. In other words, if you have a child from a previous relationship but have since entered a new relationship and are living with this person you are considered common-law.

Note: in this definition, 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in the relationship.

Separated: You are separated when you start living separate and apart from your spouse or common law partner because of a breakdown in the relationship for a period of at least 90 days and you have not reconciled. A separation of less than 90 days is not considered a separation for the purpose of child and family benefits.

Family Tax Cut: A non refundable federal tax credit which enables a “qualifying individual” in certain situations, to transfer taxable income to a spouse/partner in a lower tax bracket.

UCCB Income: If you receive The Universal Child Care Benefit it is taxable income and you must report this amount on your income tax return. The amount you received that needs to be reported can be found on form RC62. If you have a spouse or common law partner this amount is taxable to the person with the lowest income regardless of who actually received the payments. If you are a single parent you have the option of reporting the amount received as income to your child instead of yourself.

Working Income Tax Benefit: A refundable tax credit intended to provide tax relief for eligible working low-income individuals and families. You may be eligible if your working income is over $3,000 and you meet all the eligibility criteria.

Eligible Dependant: If you are a single parent and lived with and supported a dependant in 2015 you may be eligible to claim the amount for an eligible dependant. There is certain criteria that needs to be met and you must be able to prove your situation. Additional information can be found here:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/305/lgbl-eng.html

Home Buyers’ Amount: You can claim an amount of $5,000 for the purchase of a new home acquired in 2015, If both of the following apply:
- You or your spouse or common-law partner acquired a qualifying home; and you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

Moving Expenses: You may be able to claim moving expenses if you moved to work or run a business at a new location, or you moved to take courses as a student in full time attendance enrolled in a post secondary program. To qualify, your new home must be at least 40 km closer to the new place of work or school.

Disability Tax Credit: A non refundable tax credit that helps persons with disabilities reduce the amount of income tax they may have to pay. If you or a family member have an impairment that causes you to be restricted all or substantially all of the time you may be eligible. Please speak with an accountant for further information regarding how to apply.

Medical Expenses: You may be able to claim a deduction for medical expenses that you paid during the year for yourself and your family. Some examples of eligible medical expenses include: Premiums paid to an insurance provider for a medical or dental insurance plan, prescriptions, eye care, fees paid for doctors notes, medical travel expenses.

ALL Accounting Services Ltd is located at 496 New Maryland Highway, New Maryland NB, just 5 minutes from Regent Mall. We are locally owned and have been operating for more than 40 years. Our small size enables us to create lasting relationships with our clients and offer competitive rates without sacrificing quality. We are always available to meet with Canada Revenue Agency representatives with you in the event of a review or audit. We provide all accounting services for individuals, small businesses, and corporations. Phone us today 452-7687 to speak with an accountant. hours