Recently updated on October 25th, 2022 at 11:42 am
Tax season is almost upon us and there is nothing worse than finding the time to fill out your taxes and realizing you are completely unprepared. Thus, keeping records of how much you spent during the year can help you take advantage of any Canada tax credits.
When you next file your taxes, you should take advantage of the Canadian tax credits you are entitled to, as long as you qualify for them.
What are some tax breaks available to Canadian taxpayers? How can they help you? These are some of the Canada taxes tips you need to know about.
1. Canada Child Benefit
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This special credit, which replaced the Canada Child Tax Benefit in 2016, can really help parents save money on taxes while raising children. This tax credit is issued to the couple as a monthly payment adding up to an annual amount of about $6,400.
There are other tax credits available to Canadian parents depending on their situation. These include a child care deduction and child disability benefit (if your child has a mental or physical disability).
2. Age Amount Tax Credit
This particular tax can help seniors out. To qualify, you must be 65 years of age or older at the end of the tax year and have a net income of less than $83,427.
What you can claim federally depends on your net income. For example, if you are over age 65 and have an income of less than $33,174, you can claim the full $4,457. If you can get the federal level of the credit, there is a chance you could receive the corresponding provincial age amount.
If you need more information about important tax information for seniors, check out this article.
3. Credits Based on Regions
Depending on where your company or employer is based, there may be some tax benefits that can help you write off expenses. In certain regions of Canada, a 10% federal ITC is available for various forms of capital investment. Capital investments that qualify for the ITC include
- new buildings
- machinery and equipment
- clean energy generation equipment for use in manufacturing or processing, logging, farming, or fishing
There can also be incentives in those regions to encourage corporations to locate in a specific region of Canada.
4. Digital News Subscription Credit
Yes, you can get a Canada tax break for reading the news! Readers of a qualified Canadian journalism organization can receive a 15% tax credit on amounts up to $500 spent on a digital news subscription.
Keep in mind, this credit will only be available from 2020 to 2024, so take advantage of these years.
Take Advantage of These Canada Tax Credits
If you don’t want to find yourself paying a large tax bill at tax time, Canada tax breaks can be the help you need to bring that dollar amount down. Some people may not know these credits exist, so knowing ways to save money on taxes can help you in the long run.
Go take advantage of the above Canada tax credits the next time you file and see the refund amount grow larger, placing money back in your pocket.
We hope this article about Canadian tax breaks helped you out. For more business and finance articles, take a look around our site.