Get extra refund for vacation after filing this year Income Tax Return?

Income Tax Return (Extra Refund)

This is my third article on personal income tax information. In the last article you see the best free personal tax software to use.

For the last 7 years I am filing my tax return using free software. There are 4 benefits of doing this.

1. Saving of $150 when I could do it myself

2. I didn’t have my own business so I couldn’t deduct my accountant expenses

3. You care about your own money the most (using an accountant is kind of akin to hiring a financial adviser, right?)

4. This is good challenge

In this article you will find how to get more money on your tax return in 2014.

Tip 1-If you contribute to Charity (wait until you amount $200)

Did you know that the rate at which you're able to claim your charitable donations nearly doubles for amounts over $200? For that reason, you should not claim less than $200 in charitable donations in any year. Instead, if you want to optimize your tax situation, carry forward charitable donations (for a maximum of 5 years) and claim them all in a year where your income is higher. You can even combine your donations together with your spouse/common-law partner and claim them all on the return of the higher-income spouse, maximizing the credit.

 

Tip 2-If you have Transit Passes

Keep your Transit Passes: You can get a tax credit of 15%.  If you’re a student, keep your monthly pass because you can deduct the cost you pay for it on your taxes.  If you have a monthly transit pass you can claim those as well (don’t lose them or throw them away! They’re worth something even after the transit pass expires).  The transit passes have to provide detailed information (e.g duration of use, transit authority, amount paid) and are good for a Federal Tax Credit.

 

 

Tip 3-If you have extra money contribute to RRSP

On your Notice of Assessment, you'll find your maximum contribution limit for your RRSP. To maximize your tax advantages, it's usually best to contribute the full amount (for yourself and/or your spouse/partner). But beware! Contributing over your allowed amount may result in actually owing taxes. If you over-contribute, you'll likely need to complete a T1-OVP to calculate the excess contributions and to determine whether you'll pay a 1% tax on those excess contributions.

Do you know when to carry forward RRSP contributions and when to claim them?

Just because you contribute to an RRSP in 2008 does not mean that you need to deduct those contributions on your 2008 taxes. If your income in a tax year is low, consider carrying forward your contributions to a future year when your income may be higher.

During low-income years, it's a good practice to contribute to your RRSPs - even if you're not going to deduct them - because any investment income you earn is sheltered from taxation.

Contribute to your RRSP before March 1: The RRSP deadline is March 1– so hurry up fill yours! You can find how much you’re allowed to contribute on your Notice of Assessment (you know, that form that sent with that cheque?

Tip 4-If you have medical expenses

 

Most people know they can claim payments to a doctor, dentist, nurse, hospital and prescription medications and medical devices. But did you know you can claim:

•Laser eye surgery

•Batteries for a hearing aid

•Incremental costs of special foods for those with Celiac disease

•Certain amounts for attendant care/care in an establishment for a spouse or dependant

•Certain expenses for modifications to your home to accommodate a person with a disability

Did you know...?

•To claim medical expenses, they must exceed 3% of your net income

•To maximize your family's claim, you should claim all medical expenses for yourself, your spouse or common-law partner and your dependants (under 18) on one tax return

•It's usually better for the spouse with the lower income to claim medical expenses - but, if the lower-income spouse already has enough tax credits/deductions, claim them on the higher-income spouse's return or carry them forward

•If you have to travel more than 40km to get medical treatment not available locally, you can claim your travel costs as medical expenses - and more than 80km of travel lets you claim accommodation costs, too

 

Tip 5-If you have family (getting tax credit)

If you are supporting one or more individuals, you may be eligible to claim tax credits for them. You can often claim credits for your spouse/partner, children, infirm adults (if you are the caregiver) or certain other relatives living with you. Plus, you may also be eligible to receive a transfer of any unused credits they have on their personal income tax returns.

Tip 6-If you have RESP

Contributions to a Registered Education Savings Plan (RESP) are not tax deductible. However, any earnings on that investment are sheltered from taxation and not subject to tax until withdrawn when the recipient begins post-secondary education.

Limits for contributing to RESP’s

•There is no annual limit for RESP contributions (prior to 2007, the annual limit was $4000)

•The lifetime RESP contribution limit is $50,000

 

Tip 7-.If You Plan your borrowing (business & investments)

Because interest paid on a business or investment asset loan is tax deductible, use borrowed money to purchase business & investment assets, and use your personal cash to purchase personal use assets, such as a house or vehicle. In order to deduct the interest cost, the direct use of the borrowed funds must be to purchase business or investment assets. If you are self-employed, borrow to invest in your business, not to purchase investment assets such as stocks or bonds.

 

Tip 8-If you Move to another province

The provincial tax rates you are subject to are based on those of the province where you live as of December 31 of that calendar year. If you are moving to a lower provincial tax rate province, move before the calendar year is up in order to be eligible for the lower rates in the year of filing. Likewise, if you are moving to a province with higher tax rates, wait - if you can - until after December 31 to qualify for one more year of lower tax rates.

Remember that it is the province in which you reside on December 31, not necessarily the province where you are employed, that determines your provincial tax rates.

 

Tip 9-If you have Student Loan

If you are repaying your student loans, you are likely paying interest. But there's good news: You can claim your interest paid on those loans. (Wouldn't getting a bigger refund be a great way to pay down your loans?) Also, you can carry forward student loan interest for up to 5 years. So, if you paid student loan interest in 2004 or in subsequent years and did not claim it on a previous tax return, you can claim it on your 2010 taxes.

Tip 10-.If you paid tuition

If you paid tuition to a specified educational or training institution during the tax year, you are eligible to claim a credit for your tuition fees paid. This not only applies to post-secondary education taken towards earning a degree but also to employment training courses not provided by your employer. Taxpayers are also eligible to claim an education credit for each month spent as a full-or part-time student.

If you’re a recent you can wait to claim your tuition credits for later on, when you’re earning the big bucks.

You can claim:

•Tuition fees for post-secondary education

•Lab expenses

•Library fees

•Examination fees

•Mandatory computer service fees

•Transit passes

•Some textbooks & books included in fees for correspondence courses

•Any GST, HST or PST included with the above

You cannot claim:

•Private tutoring

•Summer school programs

•Supply & equipment costs

•Student association fees

•Social or athletic fees

•Parking fees

•Board & lodging expenses

•Driver's education

•Music, art, drama or dance lessons not associated with a post-secondary educational program

•Camp fees

•Pre-school or play school fees

Carry Forward or Transfer Tuition & Education Credits

If you're a student, you may carry forward unused tuition & education credits to a year when your income may be higher - or you can transfer them to a supporting person (e.g., spouse, common-law partner, parent, and grandparent). NOTE: You can only transfer current-year education & tuition amounts, not balances that you carried forward from a previous year.

Tip 11-If you are working from home

If you work from home more than 50% of the time, there are a large number of deductions that you can account for.  You can deduct your internet expenses and stationary bought provided that you use these to obtain income.  If you rent, you can deduct the portion of rent and any other maintenance costs you would pay for your office space.  Per the CRA “Work space in the home expenses” site, you can also deduct:

You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, maintenance, property taxes, and home insurance. However, you cannot deduct mortgage interest or capital cost allowance.

 

 

Tip 12-If you have capital losses

Did you know that capital losses can be carried back 3 years to recover tax paid on capital gains? If you had no capital gains in 2010 but you did have losses, you could use your capital loss to offset a capital gain in any of the 3 previous years (i.e., 2007, 2008 or 2009 taxes).

 Tip 13-If you have a pension income

As of 2007, Canadian pensioners became able to split their pension income - whether from a corporate/other pension plan or certain annuities from an RRIF or RRSP - with their resident spouses or common law partners. If you have eligible pension income, you can use this tax opportunity to split up to one half of your pension with your partner, which may mean significant tax savings for you both.

 

Tip 14-If you want to earn without paying tax

The Government of Canada has called it the single most important personal savings vehicle since the introduction of the RRSP. Have you heard about the tax free savings account (TFSA)?

The TFSA became available on January 1, 2009. It allows Canadians aged 18+ to save up to $5,000CDN every year in a TFSA and to withdraw funds and/or investment income - including capital gains - without being taxed. You can also put back the money you've withdrawn without reducing your allowable contributions.

Although there is no tax credit for contributions to a TFSA, Canadians can realize significant savings in using a TFSA to earn interest without paying taxes on that interest.

Tip 15-If you not file a return

Even if you are certain that you have no balance owing or refund due in a given year, file a tax return for that year. Why? Because filing:

•Reduces the ability of the CRA to subsequently make arbitrary adjustments to your income and taxes owing for that tax year

•Determines your eligibility for government programs, like the Canada Child Tax Benefit (CCTB), GST/HST credit or any new tax rebates that may be announced

•Reports earned income, which increases your future RRSP contribution room - and we all know the value of RRSP as tax reduction tools

 

Free Tips to do Mantal Math Questions easy in 2011

Please find some tips to math questions easy. These tricks are easy to remember to do all match calculations.

Everybody knows that if we want to multiply with any number with 10 or 100 you just add one or two 0 after that number. E.g. if you multiply 39 with 10, you just add one 0 to 39 to become 390.

Here goes, the first one is easy.

1. To multiply any number by 4 all you do is double it, and then double it again.

Example: 16 X 4.

First Double the 16: 16 X 2 = 32

Then Double the 32: 36 X 2 = 64

2. To multiply any number by 5, just divide the number by 2, and then re-affix any necessary decimal points or zeroes.

Example: 56 X 5.

First Divide: 56 ÷ 2 = 28.

Then Make sense? 18 is obviously too small to be the answer to 56 X 5. It's clear that the answer is somewhere in the 100s. So you add a zero to the 18 and you have the correct answer – 280.

 

3. To multiply by 9

An easy one - Simply multiply the number by 10, and then subtract the number itself from the result.

Example: 18 X 9

First Multiply: 18 X 10 = 180.

Then Subtract: 180 - 18 = 162

4. To multiply any two-digit number by 11.

First, write the number, leaving a space in between the two digits. Then insert the sum of the two digits in between the two digits themselves.

Example: 54 X 11.

First Write down the two digit number, leaving a gap between the two digits: 5 _4.

Then add the two digits: 5+4 = 9.

Then Insert the sum between the 3 and the 4, which gives you the answer – 594.

You will have to ‘carry’ when the sum of the two digits exceeds 9.

Example:  48 X 11.

First Write 4 _8.

Then add the two digits: 4 + 8 = 12.

Then because the two digits total more than 9, you must insert the 2, which gives you 428,

Then ‘carry’ the 1 (add it to the 4), giving the answer - 528.

5. To multiply any number by 25,

To do this, just divide the number by 4, and then add any necessary decimal points or zeroes.

Example: 36 X 25.

First. 36 ÷ 4 = 9

Then. 9 and 90 both seem too small to be the correct answer to 36 X 25.

Then. Add two 0 to the 9 giving the correct answer - 900.

 

6. Divide number by 25

Here, you multiply the number by 4, and then add any necessary decimal points or zeroes.

Example:  500 ÷ 25.

First ignore the zeroes and multiply 5 X 4 = 20.

7. To multiply any two-digit number by 99

First, subtract 1 from the number to obtain the left hand part of the answer. Then, subtract the number from 100 to get the right hand part. Sounds a bit complicated, I know. Look at the example below and it will become clear.

Example: 15 x 99.

First Subtract: 15 – 1 =14. (Left- hand part of the answer).

Then Subtract. 100 – 15 = 85. (Right-hand part of the answer).

Then Put both parts together: 1,485 is the answer.

8. To multiply any two-digit numbers from 11 to 19.

Example. – 18 x 16.

First Take the whole of the higher number: (18) and add to the second digit in the smaller number: 18 + 6 = 24.

Then Add a zero to the end of the answer (multiply by 10): 240.

Then Multiply the second digits of the original sum: 8 X 6 = 48 and add it to the answer from step 2: 240 + 48 = 288

Example 2. – 430 X 9

First Ignore the zero and multiply: 43 X 10 = 430.

Then Subtract: 430 - 43 = 387

Then Make sense? It's obvious that 387 cannot be the answer as it's lower than the number you are multiplying. Add a nought and you have the correct answer - 3,870

Tips to Save more money in 2011

1. To do this you need a separate bank account for your savings. I have chosen TD bank where I can withdraw the money at any time if I need, but you can use whatever bank you want. I’m not an expert and I accept feedback. Anyway, the point is that you should have a separate bank account for your savings, otherwise you’ll be tempted to spend them and it’ll be difficult to keep track.

2. When your bank account is set up properly, put your first investment in it. It can be as little as $10-$20, or whatever you can afford. Those will be the first money toward your financial independence.

3. After you made your first investment, decide in advance a day when each month you’ll put some money into your saving account. You can start with $10 a month if you want, but make sure that you put something each month. My advice is to choose a day just after you receive your paycheck in order for you to make less excuse.

4. Month after month, as you begin to save more and more money and you feel comfortable doing it, increase the amount that you put into your savings account each month. For example, if you were previously saving $10 a month, you can increase to $20 or $30.

5. When you receive extra money like CRA or bonus or you feel comfortable doing it, put what you can into your savings account. By the law of accumulation, even if you decide to save $100 a month, after one year you’ll have more like $2,000 rather than just $1,200.
6. Finally, figure out how much money you need to live comfortable one month, including all the expenses that you currently have, and make a goal of saving the equivalent of six months worth of your expenses as soon as possible. It’ll probably take you one year or more to do this, but when that time will come you’ll be glad you started today.

7. If you follow this system, I’ll guarantee that you’ll feel better, have less stress, and eventually reach financial independence in the long term.

8. If for some reason during one month you have lots of expenses and you feel like you would not be able to save your usual amount of money, cut it in half, but save something anyway, even if it’s just $10. The process of doing it is always more important than the amount that you decide to save.