5 Overlooked Tips on How to Save Money While on VacationFebruary 15, 2018
Tax Deductions for Uber Drivers in TorontoApril 3, 2018
Whether you have what is classified a ‘low income’ or your partner does, knowing how to file your taxes properly can add up. Here are some tax tips for low income earners.
You may be thinking that your income was so low last year that you could easily skip filing your taxes. Or you might be so stressed out over the ordeal you will fill out the required parts of the form and nothing else. The best advice the experts give is always: file your return and claim everything possible. It could add up to extra dollars in your pocket.
The Canadian government offers various types of credits that you can only get if you file your tax return. You could be eligible for these credits even if you have no income to declare or you are not expecting a refund. Your tax return is used to calculate the amount of benefits you receive for items such as:
- Child Benefit
- Old Age Security
- Ontario Trillium Benefit
- Any type of provincial/federal benefit
Look into applying for as many credits as possible. For example, you may qualify for the Working Income Tax Benefit (WITB) that was established to encourage low income families to remain in or enter into the workforce.
In your haste to get through the paperwork, you could miss some important deductions. For example, when you have dependent children, even if the amount of child care you paid out won’t affect the amount of your return, it could lower your income enough to increase your monthly Ontario child benefit. Take time to go through your receipts and claim every deduction possible.
Carry a Deduction Forward
In the case where you would be wasting deductions for education and moving expenses, charitable donations and so on, you can defer the claim to a time in the future. What matters is that you record them on your return now, but don’t use them until you really need them.
Assign Credits to the Household’s Higher Earner
Did your spouse or common-law partner earn more than you last year? There are certain expenses that can be claimed by either of you, such as medical. In this instance, you would combine all of your medical expenses and claim them on your partner’s return.
If you have any questions, we recommend that you take time to peruse the Canada Revenue Agency website to get more information. However, we will always do our best to answer your questions, especially regarding our financial services.
If your tax return not what you expected and now your plans to fix your long-awaited car problems are ruined, we can help. Find a Pay2Day store near you for a timely, manageable solution to your temporary financial crisis.