It’s that time of year when you should be considering last minute steps to optimize your 2019 income tax return before the April 30, 2020, deadline (June 15 for self-employed individuals).
To help you on your way, Koroll & Company has listed some common tax credits and tips on how to maximize their effect on your tax owing.
In Canada, the Donation Tax Credit is a two-level credit. This means that the percentage received as a credit increases as your donation amount increases.
Looking at the federal tax credit, for the first $200 you donate to eligible charities, you will receive a 15% non-refundable tax credit. For any amount over this initial $200 donation, you will receive a 29% tax credit (for taxpayers with a taxable income of $210,371 this increases to 33%).
To ensure you make the most of your tax credit, consider these five tax planning tips.
To help offset your medical expenses paid out of pocket without reimbursement, there is a tax credit, which can help optimize your tax planning strategy.
There is no general rule that can be followed for determining the eligibility of a medical expense. To find out whether an expense is eligible, head to the Canada Revenue Agency (CRA) website.
Once you have determined which of your medical expenses qualify, it is time to determine your tax credit. The rule of thumb, when claiming eligible medical expenses, any amount over the lesser of 3% of your income OR $2,352 (in 2019) can be claimed for the medical expense tax credit.
To ensure you make the most of your tax credit, consider these three tax planning tips:
To ensure you are maximizing your tax position for 2019, contact us today.