Tax Tips
Amounts that are not taxed
You do not have to report certain amount in your income, including the following:
- any GST/HST credit and Canada Child Benefit payments, including those from related provincial or territorial programs;
- child assistance payments and the supplement for handicapped children paid by the province of Quebec;
- compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
- most lottery winnings;
- most gifts and inheritances;
- amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
- most amounts received from a life insurance policy following someone’s death;
- most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership;
Note Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.
Adoption Expenses
As a parent, you can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $15,453. You can only claim these incurred expenses in the tax year including the end of the adoption period for the child.
First-time Home Buyer’s Tax Credit
A First-time Home buyers can claim a non-refundable tax credit of $750 for the purchase of a qualifying home.
Tradesperson’s Tools Deduction
Tradespersons can deduct from their income part of the cost of tools purchased throughout the year.
Canada Caregiver Credit
This non-refundable tax credit replaces the family caregiver credit, the credit for infirm dependants age 18 or older, and the caregiver credit. It gives tax relief to eligible individuals who have a spouse or common-law partner or a dependant, with an impairment in physical or mental functions.
Charitable Donations
Giving is a great way to support your community, favourite cause or mission and feel good about yourself… but also a savings in tax dollars for you!
Universal Child Care Benefit
The universal child care benefit currently provides all families with up to $1,200 per year for each child under the age of 6. The UCCB is paid monthly to help eligible families provide child care for their children under six years of age.
Home Accessibility Tax Credit
Seniors and individuals with disabilities who are eligible for the Disability Tax Credit are considered qualified on this tax relief of 15% on up to $10,000 of eligible expenses which were incurred for renovations to allow for better mobility and functionality or reducing the risk of harm.
Pension Income Splitting
Pensioners can split up to 50% of eligible pension income with their spouse or common-law partner and reduce their overall tax paid.
Volunteer Firefighter Tax Credit
You can claim $3,000 for the volunteer firefighters amount (VFA) or the search and rescue volunteers amount (SRVA), but not both, if you meet the following conditions: