Tips To Get The Most Out Of Your Tax Return
Filing prompt tax returns is the duty of every citizen in the country to stay on the right side of the Canada Revenue Agency (CRA). It can also help to gain refunds if too much tax is deducted from an employees’ salary. However, many employees are unaware of the benefits they can take advantage of when filing returns, which usually ends up with them paying unnecessary tax.
At Saklas & Co., CPAs, we understand the challenges people face when filing their taxes, and this is why we want to guide you through the process. We have compiled a list of six ways to get the most out of a tax return.
#Tip 1: Maximize childcare expenses and family benefits
Child care benefits can save families thousands of dollars. The savings will be determined by the family income from the previous year, the number of children, and their age.
#Tip 2: Registered Retirement Savings Plan (RRSP) Contribution
The RRSP saving and investment vehicle enable employees to put away money tax-free. At withdrawal, the fund gets taxed at a marginal rate.
#Tip 3: Vehicle Expenses claim
The vehicle expenses that can get deducted include fuel, repairs, insurance, license, and registration fees. But, the vehicle deductions are only for employment use and not personal use.
#Tip 4: Medical Expenses
In Canada, medical expenses are a non-refundable tax credit. It is the lower of the portion over three percent of net income or $2,397 that becomes a tax credit vs a deduction.
#Tip 5: Simplified home office deduction
Employees can claim a temporary flat rate method deduction if they have worked from home during COVID-19. The simplified home office deduction is two dollars for every day working at home.
#Tip 6: Interest paid on student loans
Interest paid on student loans can be claimed when filing. The interest can also be carried forward and applied to any tax return submitted over the next five years.
We hope these six tips help you save money when filing your taxes. If you need assistance putting your books in order, contact Saklas & Co., CPAs today! We are an experienced Chartered Professional Accounting firm in Surrey, BC, committed to customer service.
Our team is approachable, friendly, and enjoys listening to clients’. It makes them feel comfortable to call or email us whenever they require. We also make sure our clients’ businesses succeed by using our financial services. Our services include business succession planning, compilation and reviews, and Quickbooks advisor. We also offer business consulting, estate and trust tax planning, and Canadian tax returns and certificates of compliance for non-residents. We serve clients across Surrey, Langley, White Rock, Delta, Vancouver, Richmond, Burnaby, Fort Langley, and Cloverdale.
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