With 2012 behind us, it`s time to start thinking about taxes! If there are 2 things in life we can be sure of, it`s “death and taxes”. Taxes don`t have to always bring on the blues. It can mean money in your pocket if your plan your year, deductions and purchases right.
Here are a few things families with kids can claim on their income taxes:
Having a Baby:
We certainly lucked out in 2012 – we had a baby. In December I gave birth to a healthy baby girl, and although she hasn`t been with us for a full year, we still get to claim her as a dependant, a full $2,191. I guess there was a huge benefit for her early arrival. If one parent can`t claim all the benefit, the other can! (Of course, you also claim any other child living at home)
Being Active:
We signed Princess Activity up for all kinds of sports: soccer, skating and swimming. Parents can claim up to $500 per child (16 years and under) for physical activities. And for my local readers in Nova Scotia, there is also a provincial credit for being active as well – bonus.
Paying for Child Care:
Who takes care of your kids? Did you know that you can claim up to $7000 per child for day care (assuming you’ve paid at least that much). This is a huge expense for families, my friends and I were talking about some years paying nearly $20,000 in child care per year, so every deduction counts.
Being Artistic:
This one is brand new. If your kids take artistic classes, like language, Girl Guides, Scouts or ballet, you can claim up to $500 on your taxes. I love this option, specifically because not all kids are “sporty”, and would rather focus on the Arts.
Taking the Bus:
That’s right, if you or your kids under the age of 19 buy bus passes, you can claim it! As long as there are 4 weeks in a row of bus passes.
Saving for Education:
While you don’t necessarily get a tax benefit for saving for your kids education with an RESP (Registered Education Savings Plan), the government will add a maximum of $500 to each child’s plan. This is basically like free money.
Ensure you save your receipts when claiming each of these family related tax deductible benefits.
You have until April 30th to complete your taxes. If you owe money, and send in your taxes after the April 30th deadline you will be charged interest. But hopefully with a few of the tax tips mentioned above, you’ll have extra money in your pocket!
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{ 58 comments }
Thanks! These are great. This is our first year claiming child care so we are hoping for a decent return.
I get an extra $100 taken off at work as well I just get them to take taxes off for a single person, no kids. Tax time I generally get about $4600. Best yr was when they had that home renvo rebate. As well I make sure I go to the pharmacy in Walmart and get them to print up all of the stuff from the year to send in.
Try to top up your RRSPs, nice tax savings there when filing taxes.
keep everything organized by the year. organization keeps a lot of stress off your mind when your doing taxes
Be organized with your papers so you’re not scrambling at the last minute.
Save your receipts and keep them organized!
I have a folder with envelopes labelled medical, tools, kids fitness etc….
We have a folder for all our tax slips, so when it’s time to do the taxes, we just pull out the folder and punch the numbers away.
My daugher loves guides, good to know I can claim the fee
I had no idea I would get a tax break for my daughter participating in ballet. That’s great! It makes the large cost of classes seem not so bad!
Remember to apply for the tax credit for kids’ physical-type programs.
Be organized, keep copies and dont wait till the last minute.
contribute to RRSP, because you get to claim all of it.
gather all your receipts and tax materials throughout the year in one spot so when it comes time to file taxes it’s all ready to go
Remeber to use the federal kids activity/sports tax credit and if in Ont there is a province credit too
Make an envelope to keep all your receipts.
Start a designated pile for your tax info as soon as it starts to come in. Don’t forget where you put it!
Remember to keep any donation receipts that you may receive for charitable donations that you make throughout the year, so that you’ll be able to claim them all on your annual tax return.
Don’t wait until last minute to do your taxes (guilty of this) its nice to get them done sooner so you get your return faster(if there is one)
Don’t wait until the last minute. Not only is it stressful, but if you need to call Revenue Canada for help/info you will have a heck of a wait.
Thank you so much for the tips.
We write pertinent information on the back on unclear receipts when we file them so that at tax time, we don’t have to try to remember what we bought 11 months ago.
I like to keep a running total of my medical bills so I have less calculating to do come tax time. Thanks for the chance.
keep all medical bills
Be organized and file on time!
Don’t lose any receipts!
If you’re a sweeper, you need to report your winnings for your taxes.
keep all your receipts
keep all your receipts!
dont forget to claim the disability tax credit if you qualify
Keep all your receipts!
Contribute to your RRSP portfolio, if possible, to help lessen taxable income for the year.
Make sure everything goes into the folder asap so it doesn’t get missed.
keep everything in a large envelope labelled
Really, keep all papers in a big envelope.
Keep all relevant tax documents in an envelope in preparation for tax season the next year. That way, you don’t have to look everywhere for them when it comes time to actually file.
Be organized and file early
Great informative article. I work for H&R Block, and tax time is usually a frustrating experience for most, because they are unaware, so it scares them !
Good luck everyone !
be organized
Save you receipts!
if you use your vehicle for work (not just for getting to and from work, but FOR work purposes) keep your gas receipts etc. You can claim some of it on your taxes!
Make sure you claim the fees for your kids physical activities
Always do your taxes on time.
Do it right.
Save everything in a large envelope by year.
do them on time!
Last year we had an unfortunate surprise because we had moved from Alberta to Ontario for my hubby’s work. We had thought we would get money back that we paid out of pocket due to the move but alas, no. So last year wasn’t great so hoping our 2012 returns will be a bit better!
These are great tips. I will be at least using the be active one
be organized and keep copies
Keep your receipts organized throughout the year, and when tax time comes, you’re ready!!
I dont have any tax tips… I usually get someone to do it for me but I would love to try this way.
Keep an envelope marked TAXES with the year to keep all relevant papers and reciepts in it.
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I Suggest You Try To File Your Taxes As Soon As Possible
And Save All your receipts and keep them organized.
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Crap… Gonna need to make some RRSP contributions to reduce my net income.
My biggest tip is to stay organized all year round, and not just scramble to gather things, or finish things up at the last minute.
Thanks for the wonderful tips!
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