Are you looking for tips for filing 2014 personal tax return They include maximizing eligible personal tax credits, filing a tax return despite having low or zero income, reporting all T-Slips, and transferring all unused credits to your spouse.
It’s that time of the year again, personal tax filing season. Hi my name is Allan Madan, your trusted accountant. In this article I will reveal the four best advices for filing your personal tax return in 2014 and help you save money.
Tax Tip Number One – Maximise Personal Tax Credits:
The first of these suggestions for filing your personal tax return in 2014 is to make sure that you take full advantage of all of the personal tax credits that you may be eligible for. There are a wide range of, both, federal and provincial credits that you may qualify for, such as credits for disability, tuition, children fitness or arts, first time home buyer, family care giver amount, and medical expenses. While these can seem minimal by themselves, they can add up to a substantial amount.
Tax Tip Number Two – File a Tax Return Even if You Have a Low or Zero Income:
Many people with low or zero income assume that they don’t have to file a tax return. This is a big mistake; it can lead to thousands of dollars of lost benefits and credits. This includes, for example, Canada child tax benefit and the GST and HST credit which can only be received if a tax return is filed in the first place.
Additionally, low income groups like teenagers should consider filing a tax return in any case. This will create RRSP room which could be used in the future for tax deductions and retirement savings.
Tax Tip Number Three – Make Sure That You Report All of Your T Slips:
It’s essential to report all of your T Slips on your personal tax return. This includes T3s, T4s, and T5s. If you fail to report your income in the current year as well as in any of the three previous years, the CRA will hit you with, what’s known as, the repeated failure to report income penalty. This penalty is equal to 20 percent of the amount that you fail to report in the current year.
Tax Tip Number Four – Transferring Unused Credits:
The fourth of these strategies for filing your 2014 tax return concerns your partner’s taxes. If your spouse or common law partner cannot claim all federal tax credits, you can claim the unused portion. The unused credits that can be transferred to your spouse include tuition fees, education and textbook credit, pension credit, disability tax credit, and the age credit. However, you cannot claim these credits if you were separated at the end of the year.
Lastly, make sure you file your tax return on time this year. The deadline is April 30th. However if you or your spouse are self employed then the deadline is extended to June 15th. If you have taxes due, late filing will trigger a penalty of 5 percent on the balance that you owe.
Thanks for reading this article about tips for filing your personal tax return in 2014. Please comment because it helps me come up with more relevant content. In addition, you can get access to a free report, ‘20 Tax Secrets on How to Beat the Tax Man’, when you visit my website.
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.