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  • Canada Revenue Agency, Tax Planning

How to Save Money this Tax Season (Part 1)

With inflation making headlines, any opportunity to save money is surely welcomed. As you file your taxes for 2021, be sure to take advantage of all the available tax credits that you are eligible for.

Read on to learn more about several key Canadian credits that could save you money.

 

Credit

Benefit

Eligibility

Canada Workers Benefit

·      A refundable tax credit intended to supplement the earnings of low-income workers

 

 

The maximum basic amount is:

·         $1,395 for single individuals
$2,403 for families 

The maximum amount for the disability supplement is:

·         $720 for single individuals

  • $720 for families

 

You may be eligible for the Canada workers benefit (CWB) if you:

·  Earn working income

·  Are a resident of Canada throughout the year

·  Are 19 years of age or older on December 31, or you live with your spouse or common-law partner or your child

Climate Action Incentive

·      Tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing

The amount you receive depends on your family situation and the province you reside in.

The CRA does not charge or give interest on any CAIP overpayments or underpayments.

 

To be eligible, you must be a resident of AB, SK, MB or ON.

You must also meet at least one of these conditions during the same period:

  • You are 19+
  • You have (or previously had) a spouse or common-law partner
  • You are (or previously were) a parent and live (or previously lived) with your child

Home Office Expenses

·      As an employee, you may be able to claim certain home office expenses

Temporary flat rate method – you can claim $2 for each day you worked from home up to a maximum of $500 in 2021

 

Detailed method – you can claim the actual amounts you paid, supported by documents and a signed T2200 from your employer

Eligible employees working from home

 

Medical Expenses

You can claim only eligible medical expenses on your tax return if you, or your spouse or common-law partner:

·       Paid for the medical expenses in any 12-month period ending in 2021

·       Did not claim them in 2020

 

Generally, you can claim all amounts paid, even if they were not paid in Canada. For all expenses, you can only claim the part of the expense that you or someone else have not been and will not be reimbursed for.

Anyone who has eligible claims

Home Buyers Amount

 

Up to $5,000

You can claim up to $5,000 for the purchase of a qualifying home in the year if both of the following apply:

·  You (or your spouse or common-law partner) acquired a qualifying home

·  You did not live in another home owned by you (or your spouse or common-law partner) in the year of acquisition or in any of the four preceding years (first-time home buyer)

 

 Stay tuned for part 2 that will outline some Ontario-specific credits you don’t want to miss!

As always, if you have any questions please feel free to contact us.