There’s no doubt that raising a family is getting increasingly expensive, and we wanted to help, so we teamed up with our good friends at H&R Block to give away three sets of online tax return software.
Cleo Hamel, senior tax analyst at H&R Block Canada, offers the following tax tips for families who wish to reduce their 2012 tax bill:
For the active child:
The Children’s Fitness Amount is a federal non-refundable credit worth up to $75 in tax savings for children younger than 16 who are enrolled in an eligible program of physical activity. Manitoba, Ontario, Yukon, Nova Scotia and British Columbia also have provincial credits for more tax savings. But not every program meets the eligibility guidelines, so do your homework.
For the artistic child:
The Children’s Art Credit is another federal non-refundable credit worth up to $75 for children younger than 16 enrolled in an eligible program such as language classes, Girl Guides or Scouts, art classes or ballet lessons. The organization should provide a receipt.
Start saving for school today:
Parents can open a Registered Education Saving Plan (RESP) as soon as their child has a Social Insurance Number. Designed to help save for post-secondary education, parents can make up to $50,000 in lifetime contributions and receive additional benefits from the government as part of the Canada Education Savings Grant (CESG).
Claim childcare:
Keep all your receipts for childcare expenses or you cannot make the claim. From daycare to nannies to babysitters, childcare expenses are claimed by the lower-income spouse. Unfortunately, any unused amount cannot be transferred to the higher-income earner unless there was a period of separation of 90 days or more or the other spouse was in school, prison or the hospital.
There are a number of ways for families to reduce your tax bill.
Do your homework and avoid missing out on any money-saving credits by using tax preparation software, like H&R Block At Home, which guides Canadians through step-by-step tips to identify every possible deduction or credit, calculates your return as you go, and ensures you get your maximum refund. Worried you missed something using another software program? Bring it into an H&R Block office and a tax professional will do a Second Look review for free.
Information provided by H&R Block (www.hrblock.ca)
Don’t forget to enter our contest to win free tax return software from H&R Block!
Image credit: kenteegardin/flickr
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