Saturday, March 28, 2015

Tax Return Filing Tips for 2014 Taxes

Filing a tax return isn't always an easy task. You want to ensure you claim every credit and deduction that you are entitled to, whether you do it yourself or give it to a tax preparer.
The following notes are designed to highlight some federal deductions and credits that may be of interest.  
  • Home buyers' amount: Did you buy a home in 2014? You may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750.
  • Medical expenses threshold: For the 2014 tax year, the maximum is 3% of net income or $2,171, whichever is less. NOTE: If your medical expenses exceed 4% of your household's combined net income and are due to a medical condition, you may want to check out the Ontario Government Trillium Drug Program 
  • Donation tax credits: after March 20, 2013, the first-time donor super credit is 25% for up to $1,000 in donations, for one tax year between 2013 and 2017
  • Lifetime capital gains exemption:The lifetime capital gains exemption is $813,600 in 2015.
  • Low-interest loans: The current family loan rate is 1%.
  • Children's Fitness Amount - Is now $1000 (it was $500) for children under 18 enrolled in a prescribed fitness program.
  • Maximum RRSP contribution:The maximum contribution for 2016 is $25,370, and for 2015 is $24,930.  However, you should check your Notice of Assessment from your 2013 taxes
  • TFSA limit: The TFSA limit for 2015 is $5,500, for a total of $36,500 in room available for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009.      
  • Maximum pensionable earnings: For 2015, the maximum pensionable earnings is $53,600, and the basic exemption amount is $3,500.
  • Maximum EI insurable earnings: The maximum annual insurance earnings (federal) for 2015 is $49,500.
  • Turning 65 this year? - There are a number of credits that take effect.
  • Turning 71 this year? -In the year you turn 71, you must convert your RRSP to a RRIF
  • Did your children turn 18? - Many credits and deductions may no longer be available to the parents
For more information, the Canada Revenue Agency web site can be found here.