Tax Credits you may not Know

With tax season around the corner and two very difficult financial years for many, everyone is looking for ways to save as much money as possible. We work hard for every dollar and want to save as much as possible; whether it is shopping for weekly specials, reducing luxury expenses or with ridiculous prices at the pumps, choose to drive electric. Your income taxes filing should be treated the same way.

Taxes laws and deductions are changing constantly and unfortunately, not always to our benefit. Whether you choose to do your own taxes or seek a credited accountant, you should be aware that there are many new credits you may not be aware of. Since I strongly believe in sharing the knowledge, here are a few I discovered.

Did you know....

Adoption Expenses

In Quebec, if you chose to adoption a child under the age of 18 years of age, you may claim some of your expenses incurred for the process, up to $10 000,00 . Some of these deductions can be for fees paid to a licensed agency, travel expenses, fees for translating documents.

Caregivers

Many people are the primary caregiver to a relative of 70 years of age. If this relative lived with you for 365 consecutive days (183 days in 2021). If this relative suffers from certain prolonged mental or physical functions issues, the caregiver may be eligible to a 30% tax credit of the costs of services. (maximum of $5200,00 in expenses, maximum $1560 tax credit/pp)

Gluten Free

Before everyone runs out to by Gluten Free food, because they think they will deduct their entire grocery bill, not so fast. If you have a Medical Diagnosis of Celiac, you may deduct some of your costs for the gluten free foods you are forced to buy. Only the person with the medical issue can deduct their food costs.

Family Trust Exemptions

For people that have Family trusts, know that you are eligible to one lifetime capital gains exemption. The current exemption has been set at $835,000.00 per individual. (inquire rules and exceptions with accountant)

Children Activities

If your family income is less that $142,685.00 , you may be edible to a 20% tax credit for registration or membership fee to a maximum of $500,00. Excluded are Sport Etudes or Art study programs.

Changes in Child Tax Credit

According to the Quebec Revenu site, the children tax credit has increase to up to $3600,00 per year/pc under 5 years of age and $3000,00 /py pc for children between the ages of 6 to 17.

Working from Home

Canadian tax credits for work from home, has increased from $400 to $500. If you worked from home during covid, you may wish to use the $2.00 / pd flat rate tax credit.

Changes to the Federal Income Tax brackets for 2021:

• $0 - $49,020 (15%)

• $49,021- $98,040 (20.5%)

• $98,041- $151,978 (26%)

• $151,978 - $216,511 (29%)

• $216,512 are higher (33%)

These are only a few tax credits that I came across and found important to share. Laws, especially tax credit laws are constantly changing , they might have already changed as I am writing this, so you always need to double check. It is important to note that everyones financial status is different, so some of these tax credit may or may not apply to you but, the difference between one person savings and another, is a GREAT ACCOUNTANT. Like I always say, " We all know we have to pay taxes, but why pay more than you need to."

Good Luck !