By Riki Unrau

The season is upon us again. That’s right, it is time to do our taxes. While this time of year is a necessary evil that most of us dread it can still be an excellent opportunity to save some cash. Let’s go over some commonly forgotten ways to deduct expenses and take advantage of the credits out there.

Public Transportation Passes

If you utilize public transport by way of a monthly or annual pass (no single tickets) then you can add that into your tax deductions. Just be sure to keep your receipts throughout the year.

Moving Expenses

Did you move to go to school or so that you could be closer to your work? Then you could qualify to deduct those expenses. Keep in mind that they can only be deducted off of the income you earned after you moved. For more details on this program visit the Canada Revenue Agency’s website.

Charitable Giving

If you are such a wonderful person as to give a little of what you have so that others can have a little more then you will be rewarded by way of tax credits. As an added bonus, if you are donating for the first time in five years then you qualify for the first time super donor’s credit which entitles you to even more.

First Time Home Buyers

If you just purchased a home and haven’t been on title for five years previously then you can qualify for up to a $750 credit on your return. You don’t even have to do anything to acquire this as the tax information will come to you in the mail.

Interest on your Loans

If you have taken out a loan or line of credit to purchase an income generating asset (rental property, business, dividend stock) then you can deduct that interest. Same thing goes for the interest on student loans.

RRSP Contributions

Most are aware that you can deduct RRSP contributions. They count by subtracting against your income making your taxes owed less than they would otherwise be. You can also save them for the next year if you anticipate a higher income thus pushing you into a higher tax bracket.

Children’s Activities

If your kids are enrolled in sporting or arts programs be sure to keep your receipts. The Child Fitness Tax credit is $1,000 per child and the Child Arts Tax Credit is $500 per child. That’s a lot of savings for a lot of fun.

Family Tax Credit

If you live in a household where one parent earns a much higher income than the other you can take advantage of income splitting which can give you up to a $2,000 tax credit. You must have at least one child under the age of 18 though.

While there are many more ways to save on your taxes this is a great list to get you started. For more details on the above and more deductions and credits be sure to consult a tax professional.

– Riki Unrau is a Mortgage Broker with Invis Williams and Associates, located at 828C Baker Street, Cranbrook, BC V1C 1A2 – 250-919-6402. For more try: rikiunrau.com

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