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• All family taxes should be done at the same time.
   

• Total all medical receipts for the family together.
   

• Medical expenses must be more than 3% of the lower income spouse.
   

• Official tuition slips are needed. Many colleges and universities require students to print  their own T2202 slips.
   

• Purchase Spousal RRSPs for the spouse in the lower tax bracket to even up retirement income.
   

• RRSP deadline for contributions is March 01, 2010 . Your eligible 2009 registered retirement savings plan - RRSP - contribution amounts are noted on the 2008 personal income tax assessment notices.
   

• If you need to know what your RRSP limit is call Canada Revenue Agency @ 1-800-267-6999 (TIPS).
   

• Are you turning 71 in 2010 ?  If so, then you must convert your RRSP into an annuity or a registered Retirement  income fund by December 31, 2010.
   

• If you supported a parent or grandparent in your home during the year, you may be entitled to a non-refundable tax credit entitled the Caregiver Amount.
   

• You can save donation receipts up to 5 years and use them when they may be the most beneficial to you.
   

• Interest earned in a Registered Education Savings Plan (RESP) accumulates tax deferred until your child withdraws the money to fund his (her) education. The government also provides a grant of 20% of your contributions to a maximum of $500 per year per child under 18 years of age.
   

• These expenses may be deducible - moving expenses, child care expenses, charitable donations, political contributions, safety deposit box fees, alimony, medical expenses & eligible public transit passes purchased after July 1, 2006.
   

• If your child is under age 16 and enrolled in an eligible fitness program, you may be entitled to the new federal children's fitness tax credit on up to $500 in eligible fees per year for 2007 and later years. The non-refundable credit is worth up to $78 per child in 2007 and either parent can claim the credit


 

• If you earn income eligible for the pension income tax credit, starting in 2007, you and your spouse or common-law partner may reduce your overall tax bill through a new pension income splitting measure announced by the Department of Finance on October 31, 2006


 

• If you have children under the age of six, starting in July 2006, your family may be entitled to receive $100 per month for each of those children under the new Universal Child Care Benefit. However, you must apply for the Universal Child Care Benefit if you have not previously applied to receive the Child Tax Benefit


 
• You Are Taxed On Profits

  Many business owners think they are taxed on all the money they take out of their business. In fact, if you are a sole proprietor (rather than a corporation) you are taxed on the profits of the business-not the revenue. Your estimated income tax payments should be based on the profits of the business. Remember - you may be required to make quarterly income tax installment payments - don't forget to budget for this.

•  Starting in 2009, Ontario offers a Senior Homeowners'  Property Tax Grant of up to $250.00. This is scheduled to increase to $500.00 in 2010.

• Tax - Free Savings Account - effective January 1, 2009 > The Tax-Free Savings Account announced in Budget 2008 is a flexible savings vehicle that allows Canadians to contribute up to $5,000.00 per year to the account, with unused contribution room being carried forward. Investment income, including capital gains, earned within the account will not be taxed, and withdrawals will be tax-free.

• Many people are preparing to pay their March 15 quarterly instalment and worrying about their April 30 tax liabilities, while they watch their portfolios languish in turbulent times. You should be preparing not to pay, especially if it hurts the portfolio further by generating withdrawals that are not required. Check out Tax Tips 1 and 2.

  Two things to know before you overpay instalments or avoid your obligations on April 30:

  • You can avoid the March 15 and June 15 quarterly instalments if your income is expected to drop in 2010. Simply request that instalments be based on an estimate of 2010 taxable income by writing a letter to CRA. However, note that interest will be charged if instalments are deficient when you file your 2010 tax return.
  • You can avoid late filing, gross negligence and tax evasion penalties if you file on time, but then make arrangements with the collections department at CRA to pay over time. Interest will be charged as CRA waits for its money, but that's a much better way—and ultimately less expensive way--to handle the issue than the Ostrich Approach.

   

• Home Renovation Tax Credit (HRTC)

  Only available for the 2009 tax year.

  The Home Renovation Tax Credit is a non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage. It can be claimed on your 2009 income tax return. It applies to work performed or goods acquired after January 27, 2009, and before February 1, 2010 under an agreement entered into after January 27, 2009.

   Important Notice
  Eligible expenses for goods acquired during this period, even if they are installed after January 2010, will still qualify. If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.

   

• Home buyers' amount

  You can claim an amount of $5,000 for the Home Buyers' Tax Credit (HBTC) if both of the following apply:

  • you or your spouse or common-law partner acquire a qualifying home after January 27, 2009, (closing after this date); and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or any of the four preceding years (first-time home buyer).

   

• Bring your income tax into Blasutti Bookkeeping early  :)