Tax season is coming: Look busy

Tax season is officially here and will soon be in full swing. The window for filing taxes opens up in late February, so the time to start tracking down receipts and documentation for tax deductible expenses is NOW. Experts say early preparation is key to getting the most from tax deductions. As the old saying goes – $1 saved is like $2 earned.

Throughout February, we’ll be providing financial tips on deductible expenses and tax credits to help you save as many of those dollars as possible.

EXPENSE #1: CHILDREN

According to the CRA, if you pay for childcare in order to go to work or school, you can likely claim those expenses on your tax return. Each year, for each child, you can claim up to: $8,000 for children under age seven, $5,000 for other eligible children aged seven to 16 and $11,000 for children who qualify for the disability tax credit.

Some of those deductible services include:

• caregivers providing child care services;
  
• day nursery schools and daycare centres;
  
• fees for child care services offered through educational institutions;
  
• day camps and day sports schools where the primary goal of the camp is to care for children (an institution offering a sports study program is not a sports school); or
  
• boarding schools, overnight sports schools, or camps where lodging is involved.
  

Remember to keep all your receipts and other supporting documents so you have them in case the Canada Revenue Agency (CRA) asks to see them.

RESP: Tax deduction or not?
It’s never too early to start saving for your child’s education, but there are no immediate tax deductions for RESP contributions. However, benefit programs such as the Canada Education Savings Grant and the Canada learning Bond offer incentives for saving for your child's post-secondary education through an RESP.