What is new for Canada's Federal Tax Filing for 2009?
What is new for Canada's Federal Tax Filing for Tax Year 2009?
Tax Cuts at your Fingertips, Reach out and Claim Yours!!
Claim the new home renovation tax credit (HRTC) administered by the Canada Revenue Agency. Keep all your receipts to prove it! That will give you a a home renovation maximum tax credit of one thousand, three hundred, and fifty dollars ($1,350).
And that's just for starters.
The new maximum for the HBP (Home Buyers Plan), one is able to withdraw twenty-five thousand dollars ($25,000) from your RRSP under the Home Buyers' Plan to put towards the purchase of a new home.
That's good news for the housing market.
And, with the new Home Buyer's Tax Credit, you are also eligible to claim another non-refundable tax credit of $750!
And then, of course, there are increases to many of the non-refundable tax credits that all of us may be able to claim.
For instance, amounts relating to dependents, and spouses or common-law partners.
The site has a ton of information. Just click on "Individuals" and get info that's specific to your tax situation, no matter who you are! Or, click on "Online services" to get all the info about the CRA's quick, easy, and secure services.
And some of the biggest news items are always in the Key Information, Announcements and Highlights sections right on the Home page.
You can file your return using NETFILE-certified software, and just filed it through NETFILE on the CRA Web site.
It is easy, secure, and barely took any time.
And, if you owe money, there's a new way to pay called My Payment.
Tax Cuts at your Fingertips - Reach Out and Claim Yours
Beat the tax with these year-end tax tips for tax year 2009
Tax-planning should be a year round activity but even if you’ve been otherwise occupied this,year, you still have time to save money on your 2009 taxes by using strategies like these. Be deadline savvy: File your tax return and make tax payments on time to avoid penalties and interest. Payments that qualify for tax credits and deductions should be made by December 31. Deduct to save: Take full advantage of all tax deductions including the most important – your Registered Retirement Savings Plan (RRSP) deduction. Be sure to fill up all your RRSP
contribution room.
Give yourself all the credit: Make full use of tax credits to reduce your tax bill by:
• Pooling medical expenses on the tax return of the lower earning spouse.
• Pooling charitable donations or carrying them forward for up to five years to surpass the
$200 threshold that increases your credit.
• Using the spousal credit for the higher-earning spouse.
• Transferring the age, disability, tuition and/or education credits to a spouse or supporting
relative when not used by a dependent.
• Don’t forget the first time homebuyer, home renovations and moving expenses credits. Split to save: Income-split by sharing pension income with a spouse, through a spousal RRSP or by paying a salary to (eligible) family members. Be RRSP savvy: If you’re turning 71 this year, you must wind up your RRSP and need to
decide whether to take the cash (poor choice) or transfer the funds to investments held within a Registered Retirement Income Fund (RRIF) or annuity (much better choices). If you have earned income, you can continue making contributions to a spousal plan until your spouse reaches age 71.
Save tax-free: Make up to a $5,000 contribution to a Tax-Free Savings Account (TFSA). The contribution isn’t tax deductible but money and interest inside your TFSA is tax-free and so are withdrawals that you can make at any time for any purpose. Amounts withdrawn are added to your TFSA contribution room for the following year.
Make down investments pay off: Plan to sell money-losing investments by the December 31 settlement date, which creates capital losses than can offset capital gains. Buy now to save: If you’re self-employed and claiming the capital cost allowance (CCA) on
depreciable assets, buy them before year end to speed up tax write-offs.
Move to save: If you’re moving to a province with a lower tax rate, do it before December 31 and you’ll pay the lower rate for the full year. If you’re moving to a province with a higher tax rate, try to delay until 2010.
And here’s the best tax-saving tip of all: Talk to your financial advisor/tax advisor to be certain you make the most of these and other tax-reduction strategies that are available to you.
This article is presented for general information only, and not a solicitation to buy or sell any financial products. Consult your financial advisor for advice regarding your financial or tax situation.
What is new for Canada's Federal Tax Filing for Tax Year 2009?
