It's that time of year again, people. The dreaded tax season is finally here. If you thought winter was bad, just you wait until you experience the stress of tax season. You won't need a coat, but you might need tissues because you'll very likely cry.
But do you really have to cry? So many people are intimidated by tax season and honestly, you shouldn't be! Though its a huge part of "adulting", doing your taxes doesn't need to feel like torture.
I hate doing my taxes just as much as the next person. My line of work requires me to keep track of all my expenses and business records. It's super complicated, not only to do basic taxes but to also know what exactly you need to deduct.
Ready for some tax hacks? Here are some easy ways that you can save money on your tax return this year!
TL;DR Tax hacks! MTL Blog brings you a list of easy ways you can save money on your tax return in Canada. From student loans to employment expenses, we have the complete list so that you can "adult" successfully!
First things first - do not, I repeat, do not go to a chain tax service to get your taxes done. Places like H&R Block will charge you hidden fees and absolutely gut you. So just don't do it!
Instead, get a free tax software or ask that accountant friend of yours for some help. Canada Tax Services has a handy outline on its website to help guide you through the process.
Without further ado, here's how you can save money on your tax return this year!
1) Moving Expenses
If you've recently relocated from another province or city for work, you could be eligible for huge savings on your tax return. If you move more than 40 kilometres away for work, you can claim any associated moving cost. These expenses are transferrable from year to year so no worries if you forgot to claim it this year.
2) Student Loan Interest
This one is the most commonly missed tax credit for students in Canada. Make sure that your type of loan is eligible for the credit, as bank loans and student lines of credit interests aren't deductible. Again, this is transferrable year-to-year.
3) Employment Expenses
Had to buy a new computer for that freelance gig? Do you work in retail and have to buy clothes for work? All these expenses can qualify for a tax deduction. Make sure to get a signed T2200 form from your employer so you can include it in your tax return.
4) Medical Expenses
Unforeseen medical expenses such as dental, vision, and medicine can quickly add up over the year. It's best to claim all expenses at once because they are not transferrable year-to-year.
5) Charitable Donations
All charitable donations are tax deductible in Canada, so long as they are legitimate registered charities. You can receive up to 50% back on charitable expenses.
6) Carbon Tax Expenses (In Ontario, Saskatchewan, Manitoba, and New Brunswick)
Anyone 18 and older living in the above provinces will be affected by the Carbon Tax Initiative starting in April. People will be able to claim the extra tax on their gas or heating bills, for example.
7) Tax Software Expenses
Remember when I said you shouldn't go to a big chain to do your taxes? Not only will you get charged exorbitant hidden fees, but you won't be able to deduct those expenses. If you get your own tax software, keep your receipts and put it down as a tax credit!
Tax season doesn't have to be super scary, folks! Please make sure you keep this list handy when you start doing your taxes. You never know, there might be a hidden tax deduction that will make all the difference.