Randall Dang, an accountant from Vancouver, typically provides tax and other accounting services to businesses of all sizes. However, he understands that individuals might have questions about filing their personal taxes as well. Using his experience as an accountant, Randall Dang has provided the following tips for Canadian individuals and couples who have become parents. In Canada, parents may qualify for certain deductions, depending on their situation.
Although it will make your taxes slightly more complicated, these deductions can help you save big. Remember the tax filing date is April 30, so be sure to get your records and taxes in order as soon as possible. And please keep in mind that if you are not comfortable filing your taxes using tax software, you can always hire an accountant like Randall Dang who may be able to find you additional deductions to help you save even more. Here are several things to keep in mind related to deductions and children.
You may qualify for a child care deduction if you pay someone or a child care service to take care of your child so you can go to work, school, or run your own business. The maximum you can deduct is $8000 and it must be claimed by the lower earning spouse if you are married or common-law.
Any out-of-pocket medical expenses can be combined with yours and your spouse’s to claim a larger deduction come tax time. In addition to that, you qualify for an eligible dependent credit if you’re a single parent. And if you received a Universal Child Care Benefit, you will have to include those payments on your tax return as well. Please keep all of these deductions and credits in mind to lower your overall tax bill.