6 Tax Items for Year End
Well it’s that time of year again and December 31 is fast approaching. Below are 6 tax items for year end, various tax deductions and credits that individuals can consider before the year-end to optimize their personal tax situation.
Some of these to be mindful of before the year concludes include:
1. RRSP Contributions: Contribute to your Registered Retirement Savings Plan (RRSP) by Feb 29th, 2024 which will allow you to claim a deduction on your tax return for the current tax year.
2. Charitable Donations: Donations made to registered charities before the year ends can be claimed as tax credits. Remember your limit is 75% of your net income for the year. The types of donations that can be claimed are
- Registered Charities (List Of Charities)
- Registered Journalism Organizations (Rjo)
- Registered Canadian Amateur Athletic Associations
- Registered National Arts Service Organizations
- Registered Housing Corporations Resident In Canada Set Up Only To Provide Low-Cost Housing For The Aged
- Registered Municipalities In Canada
- Registered Municipal Or Public Bodies Performing A Function Of Government In Canada
- The United Nations And Its Agencies
- Universities Outside Canada, The Student Body Of Which Ordinarily Includes Students From Canada, That Are Registered With The Cra
- Government Of Canada, A Province, Or A Territory
- Registered Foreign Charities To Which The Government Of Canada Has Made A Gift
Read all the types of donation restrictions here.
3. Medical Receipts: Certain medical expenses that haven’t been reimbursed by insurance may be eligible for tax deductions. Keeping track of these expenses throughout the year is crucial.
Check the full list of eligible expenses on the Government of Canada website. There may be some items that you were unaware of that can be claimed, like Bathroom Aids, Heart Monitoring devices, and Infusion pumps. As well as items that cannot be claimed like non-prescription birth control devices or blood pressure monitors.
4. Childcare Expenses: Parents can claim eligible childcare expenses for tax credits. These can include items like:
- Caregivers Providing Childcare Services.
- Day Nursery Schools And Daycare Centers.
- Educational Institutions, For The Part Of The Fees That Relate To Childcare Services.
- Day Camps And Day Sports Schools Where The Primary Goal Of The Camp Is To Care For Children (An Institution Offering A Sports Study Program Is Not A Sports School).
- Boarding Schools, Overnight Sports Schools, Or Camps Where Lodging Is Involved.
5. Employment Expenses: Certain work-related expenses that haven’t been reimbursed by employers may be eligible for deductions. Depending on the type of work you do
6. Home Buyers’ Plan (HBP) Repayments: If you participated in the HBP, ensure any required repayments are made before the year ends to avoid penalties.
Remember, the eligibility and specifics of these deductions and credits can vary based on individual circumstances and changes in tax laws.
If you are lost or confused about any of this information, do not worry. Padgett staff is here to help you and answer questions you may have. Call us at 250-744-3854 or submit your questions on our contact form.