Here are some of the many key tax saving tips for tax filers this year:
Tips for individual tax filers
- Moving expense deductions: Moving at least 40 km closer to a new home for work, business or full-time attendance at college or university presents tax saving deductions on the income you earned at your new location; this may include moving outside of the country.
- Maximize medical expenses: There is a broad range of medical expenses that can be claimed. Consider pooling together eligible medical expenses not only incurred by you, the tax filer but also your spouse/partner and dependent children in order to fully utilize your medical expenses.
- Utilize tax credit transfers: Be sure to claim any unused tuition/education, age, disability and dependent credits from your spouse and/or children to avoid losing their tax savings benefits.
- File your taxes early:The sooner you file your taxes to receive your refund, the sooner it will be deposited into your bank account. Don’t file at the last minute. Even if you cannot pay your taxes, file them anyway - this will avoid any late filing penalties.
Tips for small business owners
- Maximize tax credits and deductions: Small businesses can take advantage of various industry specific tax credits, including the Industrial Research Assistance Program (IRAP) and the Manufacturing and Processing Profit (M&P) deduction. They may also claim Scientific Research and Experimental Development (SR&ED) expenses, interactive digital media, co-op, and apprenticeship tax credits.
- Classify Capital Cost Allowance properly: It is critical for small business tax filers to classify their capital expenditures to the appropriate Capital Cost Allowance (CCA) pool in order to get the correct percentage tax deductions available.
- Review your tax structure and owner remuneration: Tax rules and business circumstances often change, and effective tax planning involving your current structure and methods of remuneration is a very important component to save or defer tax for a business owner. Business owners should consider their tax filings accordingly to increase their tax savings opportunities.
KPMG spokespeople are available to share tips that individual tax filers and small business owners should keep in mind to help better maximize their tax strategies and refund opportunities.
“Tax filing can be daunting for some individuals but it is important to be aware of the tax deductions and claims that are available in order to save some hard-earned dollars.”
“Business activities and owners’ circumstances can change over time and this can impact tax planning and your corporate structure. Business owners need to be aware of and understand the tax planning opportunities available to them in order to help grow their business and personal wealth.”
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