Birds and the Bees

Ok, so this time I think spring is on the way for real.  The sun over the last couple of days has been nice and getting everyone giddy after a long, long, long Calgary winter.  Here at Henderson Campeau we are putting in the time to ensure you are getting your tax refunds back in your pocket and ensuring you are not overpaying for fun things like elections.

We are still managing to enjoy life amongst all the busy office hours. Paul got out with his brother's family to do some cross country skiing at the Canmore Nordic Centre.  I have much more respect for those cross country skiing athletes.

Will has been enjoying the spring thaw right here in Calgary and Kensington getting out and enjoying the city.

Seeing it's spring it's a good time to talk about children and dependents.

The CRA has several tax credits in place for children and dependents. Here is a brief description of them:

Eligible dependent amount:  If at any time in the year you were single and cared for a dependent in your home you would be eligible for this tax credit.  This credit can be up to $10,382 federally.

Child amount tax credit : For each child under the age of 18, one person can claim a child amount for $2,101.

Caregiver and amount for infirm dependents : If you maintain a dwelling for a infirm dependent or a parent over the age of 65, you may qualify for the caregiver tax credit.  If you care for a dependent over the age of 18 and is infirm there is also an amount for infirm dependents.

Disability amounts and medical expenses : If you care for a dependent and they qualify for the disability tax credit you can transfer that amount to you. Also if you incur certain medical expenses to care for a dependent some of those medical expenses may be deductible on your return.

Childcare Expenses and fitness amount: I discussed these in a previous posting, check out the archives for more specifics. If at any time you paid for child care or fitness for your children these expenses may be deductible on your return.

Universal Child Care Benefit and Canadian Child Tax Benefit :  Once you have your child please fill out the Child Benefits Application to ensure you are not missing out on any child benefit payments. The UCCB is for any child under 6 years of age and the CCTB is a benefit for lower income families.  Here is a link to the application to ensure you are not missing out: Child Tax Benefits.

Having an accountant to advise and ensure you are taking advantage of all your available tax credits in regards to children or dependents can save you a lot of hard earned money.

Enjoy the start to April.

Family fun

So we are now in mid March, the snow is melting and the sun is shining.  We are getting very busy at the office and looking forward to having you come in and get another year of taxes completed.
It was a week to celebrate the Irish, March Madness and spring time.

Also we have now started a facebook account check it out the name is of course, Henderson Campeau Chartered Accoutnants.

This week to build on the tax credit posting last week. I'll inform you that if you have a spouse,common law partner or dependants; and they don't use all of their tax credits, certain amounts can be transfered to you.

These credits include:

• Tuition credits (up to $5,000 federal and provincial)
• Disability credit
• Personal credit of $10,382
• Child amount (can be used by either parent)
• Age amount if you are over 64
• Pension amount (If you are receiving a pension the income can be split between spouses)
• Donations (the amount of donations between spouses can all be used by one individual)
• Medical expenses (family medical expenses can be optimized on one return)

These are a few examples of tax credits that can be strategically used to reduce a family's overall tax.
Therefore it is in your best interest to file the entire family's returns at the same time to ensure all the credits are optimized.

Additionally if you are single and have children, infirm dependants, elderly parents and maintain a dwelling for these dependants you may qualify for additional credits, such as eligible dependant amount or the caregiver tax credit.

Another confirmation that discussing your entire family situation with your accountant and for accountants getting to know their clients personal situation is very important.

Tax credits

So things at the office have been good.  Lots of activity lately in the office, we have seen many new as well as familiar faces dropping by, very nice.  Good ole taxes are getting done.  It is time to come on by to see us and join in the fun.

This week's posting is a quick discussion on non refundable tax credits available to taxpayers.

Non refundable tax credits are personal tax credits available, these credits are calculated by adding up the total of credits that you qualify for and multiplying them by 15% (lowest federal tax rate, provincial rates differ). 

The following is a list of a few of these credits

Personal  ($10,382)

Over age 64 (max $6,446)

Transfers from spouse/dependant

Amount for children born after 1993

CPP/EI

Pension income

Disability/Caregiver

Tuition/education/student loan interest

Canada Employment Credit

Public Transit

Children’s Fitness amount

Home Buyers’ amount

Adoption expenses

Medical

Donations

Dividend tax credit

Overseas employment

So if you think you qualify for any of the above credits let your accountant know when getting your personal taxes prepared.

Have a great weekend and let the spring shine in.  Remember to set your clocks ahead one hour on Sunday.  Day light savings already.

For federal tax purposes you add up all the credits you qualify for and multiply the result by 15% to determine the amount you can deduct from your taxes owing.

Tax season is here.

Well it is official.  It is March 1, 2011.  Get those RRSPs topped up today.  It also means all T slips should be filed and the personal tax season is here.  Will had a great week off to prepare and I enjoyed a weekend of skiing before the craziness begins.

It is truly beautiful in Calgary's backdoor.

So for the next few months I'll try to keep the discussion relating to personal taxes to help you all out.  This week I'll discuss employment expenses.

In 2010 if you were a salaried employee or commissioned employee and you were required to incur certain expenses to conduct your job, you may be eligible to deduct those expenses on your personal return.

The first step is to have your employer file and sign a for T2200.  This form is a statement from your employer that declares your employment conditions.  For example if you were required to work away from your regular place of business and had to incur vehicle expenses, purchase you own supplies as well as work from home, this declaration would allow you to deduct those specific employment expenses on your tax return.

Here is a link to the form T2200

Now if you qualify and your employer has signed the T2200, on your return we can deduct expenses such as:

Professional fees, Travelling expenses, Supplies, Office Rent, Allowable motor vehicle expenses, Parking, Salary expenses, and work space in the home expenses.

As a commissioned employee you can deduct the above expenses and additionally:

Advertising, Food and beverage, Entertainment, Lodging, Licenses, Training costs and few more expenses.

Keep in mind that the qualifying expense must meet certain criteria, such as time away from your regular place of business, home office qualifications, and hours worked to qualify for meal expenses.

So if you regularly have to incur expenses to earn your employment income you may qualify to deduct those expenses on your personal tax return.  As mentioned this requires certain forms to be completed and certain criteria to be met.  Contact your accountant to discuss your options. 

Have a great week, stay warm and bring on the spring already.