Thursday, 11 October 2012

Mom's Tax Advice

Welcome to Cadman Accounting Services!
Soon to be Dalcourt Accounting Services - July 2012.

I own and operate a fairly successful accounting firm, I don't advertise, I'm purely word-of-mouth.  I prepare about 1200 tax returns a year from Corporate returns and statements to Personal returns.  I love my work, it keeps me busy and I love the social aspect with clients.

It's October and even though it's early, I thought I would toss out a couple of family-related tax hints for the 2012 tax year.

1. Medical Expenses
  • Travel expenses - often we a unfortunitely required to travel more than 40kms out of our home town to seek specialized medical attention.  This is particularily necessary for a lot of young children needing care at the nearest children's hospital.  As long as it's more than 40kms one way and is the closest practioner available for the services needed, you are eligible for travel expenses.  This includes meals, gas, parking and can really make a difference on your taxes. 
  • Premiums you pay on your medical insurance plan above what your employer pays is also a tax deduction!
  • Weight-loss clinics -  fees paid to a weight-loss clinic by an individual in respect of a weight-loss program for the treatment of obesity would qualify as a medical expense where the services are provided by a medical practitioner who is authorized to act as such in the province in which the services are rendered.
2. Tuition and Education Expenses
  • Tuition, education and textbook tax credits are available to students enrolled at a “designated educational institution” in a “qualifying educational program”.
  • Children can transfer unused tuition tax credits to their parents for additional tax benefits, they can also carry them over to future years (Hint: Transfer to the higher income parent for the most tax benefit)
3.Moving Expenses
  • If you move more than 40kms for work or school, you can claim certain moving expenses
4. Child Care Expenses
  • While most people know of this, there are some key factors.
  • The maximum is $7,000 for each child under seven and $4,000 for each child over that age
  • To qualify for this deduction, you need a tax receipt from your day care provider.
  • Summer camps are also considered child care.

5. Arts and Fitness Tax Credits
  • You can claim to a maximum of $500 per child the fees paid relating to the cost of registering your or your spouse's or common-law partner's child in a prescribed program of physical activity.
  • You can also claim to a maximum of $500 per child the fees paid relating to the cost of arts programs now, this includes: literary arts, visual arts, performing arts, music, media, languages, customs and heritage - girl guides, beavers, tutoring, etc
Just two more happy clients of Cadman Accounting Services - well at least this pair didn't complain when I took their photo!


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