subject: 2010 Personal Tax Tips Canada [print this page] 2010 Personal Tax Tips Canada 2010 Personal Tax Tips Canada
2010 Personal Tax Tips Canada
In this article, I reveal the Best 2010 Personal Tax Return Tips that Revenue Canada doesnt want you to know.
Tip # 1: Contribute to your RRSP 2010 Personal Tax Tips Canada
Make sure to contribute to your RRSP before the contribution deadline of March 1st, 2011.
You save taxes by contributing to a RRSPs because:
RRSP contributions are tax deductible; and
Any income earned inside a RRSP is completely tax-free.
Please look at your 2009 Notice of Assessment to determine the maximum amount that you can contribute for the 2010 taxation year (i.e. 2010 RRSP Limit).
Tip # 2: Organize your Tax Receipts - 2010 Personal Tax Tips Canada
Organize your tax receipts so that you dont miss out on any tax deductions or tax credits. Common tax credits include:
Amount for children under 18
Amount for first time home buyers
Caregiver amount
Childrens sports or fitness activity programs
Donations
Interest paid on student loans
Medical expenses
Pension amount
Political contributions
Public transit passes
Tuition, education and textbook amount
Tip # 3: File your 2010 personal tax return on time
For regular individuals the due date to 2010 file your personal tax return is April 30, 2011. For self employed individuals the due date to file your 2010 personal tax return is June 15, 2011.
If your tax return is filed late, the Canada Revenue Agency will levy a significant late-filing penalty. The penalty is calculated as 5 % of the balance owing on April 30, 2011, plus 1 % for each month that the return is past due (to a maximum of 12 %).
If you do not have all of your tax information by April 30th and you know you will be filing late, then make an estimated tax payment by April 30th. By doing so, the late-filing penalty assessed by the CRA will be $nil or a small amount.
Tip # 4: Claim Child Care Expenses - 2010 Personal Tax Tips Canada
Child care expenses are tax deductible and must be claimed on the lower income spouses tax return. Child care expenses include:
Babysitting fees
Salary paid to a Nanny
PLASP fees
Daycare
After-school programs
For children born in 2004 and later, the maximum deductible amount for child care expenses is $7,000 per child. For children born between 1994 and 2003, the maximum deductible amount for child care expenses is $4,000 per child.
