23 Jan

Tax Tips for Families with Children – (4 Winners)

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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)

HRB2011Digital-ENGBeing 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 thoughts on “Tax Tips for Families with Children – (4 Winners)

  1. Thanks! These are great. This is our first year claiming child care so we are hoping for a decent return.

  2. 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.

  3. keep everything organized by the year. organization keeps a lot of stress off your mind when your doing taxes

  4. 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.

  5. 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!

  6. 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

  7. Remeber to use the federal kids activity/sports tax credit and if in Ont there is a province credit too

  8. Start a designated pile for your tax info as soon as it starts to come in. Don’t forget where you put it!

  9. 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.

  10. 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)

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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 !

  16. 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!

  17. 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!

  18. Please Enter Me In Your Giveaway.
    In Response To Your Requirement To Make a comment about a tax tip.
    I Suggest You Try To File Your Taxes As Soon As Possible
    And Save All your receipts and keep them organized.
    Thank You For Having This Giveaway!!!!!!!!!

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