3 Tax Breaks You Don't Know About
There are thousands of different expenses that you can declare on your taxes, however these are the three most commonly missed.
Tax season is upon us, and a lot of the time this means feeling completely overwhelmed by how confusing filing for taxes can be. The Canadian tax system can be quite puzzling, and this causes a lot of people to overlook some key deductions. When it’s time for you to do your taxes, it’s important to take advantage of every expense that you can claim.
There are thousands of different expenses that you can declare on your taxes, however these are the three most commonly missed:
1) Self-Employment Expenses
If you’re self-employed, the expenses that you’ve made for your personal business can be claimed. Things like office supplies, travel costs, tool expenses and exams for professional certifications are all fully deductible. If you work from home and a part of your house is dedicated to your business, you can claim a percentage of your mortgage interest, property tax, some utilities and any maintenance fees used towards the business area of your home. If you’re not a homeowner but you rent, a portion of your monthly living expense can be claimed.
2) Childcare Expenses
If your wallet is drowning in your kids’ extracurricular activities, you can get some money back on your tax return for it. Art programs and recreational or development classes can be claimed from an income where both spouses, or in the case of a single parent household just one parent, are working. In an attempt to keep kids active and social, activities like youth groups, sports lessons, language and music classes and summer camps can all be filed on your tax return.
3) Moving Expenses
If you’re an employed Canadian who moved within the last year, you may be able to get a tax deduction. In order to file for moving expenses, your new location must be 40 kilometers closer to your work, unless you’re self-employed. Filing your most current move as an expense on your tax return isn’t something that a lot of people are aware of, however if you meet this criterion, money spent on movers, van rentals, moving supplies, furniture storage, traveling and even real estate commissions can be claimed.
Canada’s tax system is always changing, so ensure that you’re not missing any important claims by keeping an eye on what’s new – this could save you thousands of dollars in tax deductions. If you’ve already submitted for the year, Canada Revenue Agency (CRA) allows corrections to be made for a 10-year period, so you can claim it in the future. Until then, keep receipts that you’ve acquired throughout the year! You never know what you could get money back for in the future.
