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Important Tax Facts

Tax Solutions Allowing Families to Reduce Taxes

Date: February 2014

There are a lot of tax solutions allowing families to reduce taxes they pay during tax season like credits, benefits, deductions, etc. There are some facts about taxes you and your family should know:

  1. Working income tax benefit (WITB) – Families and private persons receiving poor income have the right to claim WITB, which also suggests additional tax credit for people entitled to disability benefit. The amount of credit varies in different regions and areas reaching up to $1,797.

  2. Children’s arts tax credit – If your children are engaged in different kinds of art or are involved in various cultural programs, you are eligible for a tax credit of up to $500 for each child and a supplement of $500 as well for each child qualifying for disability benefit, if the initiation fee you’ve paid for them amounted to at least $100.
  3. Children’s fitness tax credit – If your children were engaged in special sports programs, took football lessons or attended sports clubs in 2013, then you have the right to claim a tax credit of up to $500 for each child and a supplement of $500 as well for each child qualifying for disability benefit, if the initiation fee you’ve paid for them amounted to at least $100.

  4. Child care expenses – Parents, whose children visited daycare centers or participated in different child care day programs in 2013 may apply for the cost of eligible child care.

  5. Family caregiver amount – Families taking care of a person with mental or physical disabilities may claim extra $2,040 of tax benefit.

  6. Goods and services tax/harmonized sales tax (GST/HST) credit – These credits enable families receiving very poor incomes to reduce their GST/HST taxes.

  7. Child and adult disability credit – If you have to take care of a child under 18 suffering from mental or physical disabilities you are eligible for a child disability credit. If an adult member of your family has serious mental or physical impairments, you may be entitled to a disability tax credit (DTC). In order to claim DTC fill out Form T2201, Disability Tax Credit Certificate, make sure it’s verified and send it to your tax centre.

  8. Medical expenses – You have the right to claim a tax benefit, which is calculated according to amounts paid for your and your family medical treatment.

  9. Canada child tax benefit is given to families raising children under 18 on a monthly basis. Proceed to online benefit calculator to make sure you are eligible for this tax credit.

  10. You may claim Universal child care benefit, if you raise a child under 6, who attends a child care center. You are qualified for this tax credit if you are entitled to the Canada child tax benefit. There are two ways to claim: use My Account to fill out the online form or mail a downloaded version of Form RC66, Canada Child Benefits Application to CRA.

  11. Home buyer – If you purchased a house in 2013, than you are eligible to claim up to $750 of tax credit.

  12. You may use Registered retirement savings plan (RRSP) to save money for your retirement by making constant payments to the plan, which will be deducted from your income.