There are hidden and secret tax credits for Canadians that can reduce your tax bill significantly. This short video and article reveals the top secret tax credits that the government doesn’t want you to find out about. Continue reading to find out more.
We all want to know how to increase our savings with tax credits. Hi, my name is Allan Madan, your trusted accountant, and today I will talk about Secret Tax Credits for Canadians that the government would rather you not know about.
Education Tax Credit
If you’ve studied in college and university in Canada you could end up paying fewer taxes. Whether you’re a full time student taking classes daily, or a part time student taking classes on the internet, you can save up to $1,000 per year.
Your first Canadian secret tax credit would be the tuition tax credit which takes into account the fee you pay for courses, laboratory, and so on. Secondly, we have the textbook tax credit which allows you to claim 15% of every $65 you spend on textbooks.
The next good news is for parents of university and college going kids. These savings are actually transferrable. By signing and completing form T2202, a parent can receive up to $5,000 in transferred credit from his child.
The Ontario Energy and Property Tax Credit
This particular secret tax credit for Canadians is paid as part of the Ontario Trillium Benefit, created to help you increase your savings and pay less in tax. Rent and property sales tax can be burdensome and this recent tax credit can actually help immensely. The amount of money that can be claimed can go up to $1,000 per year. Better yet, if you’re a senior your savings would increase to $1,097. As a senior citizen, if you’re living in a public care home and paying an accommodation cost your savings would increase even more.
Donations and Gift Tax Credit, Secret Tax Credit for Canadians
Giving can be even more rewarding given the donations and gift tax credit. Not only will your donation make a massive difference it will also lower the amount that you pay in tax. If you or your spouse made a charitable donation then you can claim a federal as well as a provincial tax credit. Under most circumstances you can claim the entire amount of your donation if the donations made are less than 75% of your income.
Public Transit Tax Credit
In the hustle-bustle of downtown Toronto and other surrounding areas, local transportation is a must. Luckily, we have the efficient TTC and other assistance that can help us get around with ease. However, the best part is not the efficiency of the public transport but the hefty savings that come with it. The last of these secret tax credits for Canadians, is the public transport credit which allows you to pay a lot less in taxes.
Just remember to keep the receipts of your monthly and daily passes with you and then claim a large portion of their cost when filing your tax return. This is applicable for unlimited transport within Canada on buses, streetcars, subways, and even commuter trains. Commuting to work might just have gotten a lot more fun.
I hope this article gave you a better idea of the hidden tax credits that you can use to help save more. If you like this article please do comment, like, and subscribe; it really helps me produce better and greater articles for you. You can also get access to a free report titled, ‘20 tax secrets on how to beat the tax man’ when you visit my blog.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.