Tax time is here, which means it is time to figure out how much you owe, or hopefully, you are receiving a refund. But, before filing your taxes, here are 12 ways to minimize your liability.
1. Write off Childcare Expenses
You may deduct the expenses if you pay for someone to care for your child while you work. The rules are that your child must be under 16, and the spouse with the lowest income must claim the deduction.
2. Medical Expenses
If you have many medical expenses, you may be able to use them to reduce your tax liability.
3. Claim Property Taxes
If you are a landlord with rental property, you can claim property taxes while the property is available as a rental.
4. Home Office
If you work from home and rent, you may claim a portion of your rent as a home office expense.
5. Employee Expenses
Just because you work for someone does not mean you can’t write off certain expenses. For example, you can write off the expenses if you are expected to pay for your cell phone or office supplies meant for work.
6. Teacher Expenses
If you are a teacher and buy supplies for the classroom, you can write off up to $1,000 of the expenses per year.
7. First-Home Purchase
If you bought your first home (or have not owned a home in the last four years), you might be eligible for a $5,000 tax credit.
8. Self-Employed Expenses
If you own your own business, you can write off most expenses to run your business, such as office supplies, advertising, and other administrative fees. You may also write off some of the expenses to run your home office, such as utility and maintenance costs.
9. Contribute to your RRSP
Find out your maximum RRSP contributions for the year, and try to maximize them. Most people can contribute up to 18% of their annual income. However, you may have carryover if you didn’t contribute the full amount last year. Click here to see what you can contribute.
10. Union Dues
If you belong to a union for work and pay union dues, you may be able to deduct them on your tax returns.
11. Tuition Costs
If you paid for post-secondary schooling, you might deduct the cost of tuition. Your educational institution should supply a form stating how much you paid.
12. Charitable Donations
You may be able to deduct any charitable deductions made throughout the year. Consider making them with your spouse to maximize your deductions.
Take advantage of all the tax deductions you are eligible to receive. This will lower your tax liability and possibly help you get a refund.
If you are not sure what to do with your refund or need help getting control of your budget so you can take advantage of tax credits, such as the RRSP credit, contact us today for a free consultation. Our professionals can help you get back on track.