Accountants’ desks are piling up as taxpayers try to maximize their returns.
“It’s a little bit stressful,” said client Shirley Connolly. “There’s a lot of new things that are out.”
One of those new additions is a carbon tax rebate. Many provinces already offer one, but Nova Scotia, Prince Edward Island and Newfoundland do not.
When the carbon tax begins in July, so do the rebates.
“It’s going to be a quarterly payment starting this summer, and you have to file your taxes in order to get that,” said accountant Joel Gillis. “That’s the only requirement.”
In Nova Scotia, there’s a tax credit for parents whose children played sports or participated in arts programs in 2022.
“It’s brand new this year,” said Gillis. “Up to $500 per child. It saves you in real terms roughly around $40 or so.”
Workers can still claim at-home office expenses due to the COVID-19 pandemic.
“Two dollars a day, up to 250 days, which is a $500 deduction,” said Gillis. “And then there’s a more detailed method you can do as well, depending on your situation.”
There’s also a new dental benefit for families earning less than $90,000 and who don’t have insurance coverage.
“Families who have kids under the age of 12, and for every eligible child, they can get up to $650 that can go toward dental care expenses,” said Jeff Lansing, spokesperson for the Canada Revenue Agency (CRA).
Meanwhile, the CRA wants to remind people to file taxes. It has set up free clinics across the region to help those with simple tax situations.
“A lot of people think if they had no income last year that they don’t need to file their taxes, but in order to get the credits and benefits that you’re entitled to, it’s really important to file your taxes,” said Lansing.
Gillis recommends having an accountant to get the most out of your money.
“You can leave a lot of money on the table if you don’t know the ins and outs,” he said. “Things change every year and we have to stay current. For the average taxpayer, it’s hard to stay current unless they are focused on that stuff.”
There are tips people often miss. One of them is to see seniors split their pension income.
It means the higher earner in a couple can put their income on the lower income earner and has the potential to save up as much as $4,000.
Gillis also recommends students file every year even if they’re not earning income.
SOURCE: CTVNEWS