It’s that time of the year again — tax time. The goal of taxes for you is to get the highest refund possible and get your hard-earned money back. To accomplish that, you have to use tax credits. Here are seven overlooked tax credits you might have forgotten to claim:
You can get a non-refundable tax credit of 15% for your transit passes, whether they are monthly or for a period of 20 out of 28 days. Do not throw them away because you must have physical copies of the passes or tickets. If you’re a student, this overlooked tax credit is even more important because you may be able to receive a credit based on the cost you paid. While it won’t give you a ton of money back, it might be a good reason to stay a little bit more organized throughout the year.
If you’re a student or a recent graduate, it doesn’t matter if you are or were full time or part time. You can get credit for the tuition you paid. Once again, make sure you keep copies of everything. A T2202A form from your school is necessary to claim this non-refundable tax credit.
Student Loan Interest Credit
Many people have student loans, and you have to work hard to pay them off, so you might as well make them work for you. You can claim the interest charged on your student loan to get money back. Only student loans paid back to the National Student Loans or Provincial student loans qualify for this credit.
Keep receipts for medical, dental, or prescription expenses that you had to pay out of pocket because they weren’t covered by your plan. If you don’t have all your prescription receipts, your pharmacist should be able to give them to you. And if you travelled more than 40 kilometers one way to receive medical care, you may also be able to deduct your travelling costs.
Dividend Tax Credit
The dividend tax credit helps offset taxes on your personal return. Since dividends are issued by corporations from their post-tax dollars, when you report the dividend you received, the dividend tax credit allows a deduction for the tax already paid by the corporation.
Many charitable donations are tax deductible, providing the charity is registered with CRA and is in good standing with them. Whether you donated a car, a few dollars, or property, you might be able to get a credit for that gift. A charitable donation receipt is required. To increase the credit you receive, you can save charitable donation receipts for up to five years before claiming. This is a useful strategy for those who don’t have taxable income or donate a little bit each year.
The government wants to encourage people to get out there and support their favourite political candidates. If you give a federal or provincial political party money, there are tax credits for that as well.
Tax credits are everywhere; you just have to know where to look for them. For more information or help with your taxes, contact Liberty Tax directly at 1-866-290-2222, or visit a conveniently located Liberty Tax office near you. For real-time updates, follow Liberty Tax on Facebook and Twitter.