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  #1  
Old 02-01-2022, 09:59 AM
Brampton33 Brampton33 is offline
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Not sure if this is the right forum category but here it is. Its not really financial issues related to supports or litigation so I am posting it here.

I have a friend of mine who is a single mother and makes out like a bandit come time. I am talking thousands of dollars in tax refund.

I have always done my taxes as a family but will now be doing my taxes independently for the first time in a long time. I have equal parenting time of 2 kids under the age of 10.

Short of saying "go see a tax advisor", is there any advice out there to maximize tax returns as a single parent?

Things I am aware of:
- claim kids as dependents
- claim s.7 expenses
- contribute into RESPs.

Anything else I should be doing? Greatly appreciate any and all advice.
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Old 02-01-2022, 10:09 AM
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Quote:
Originally Posted by Brampton33 View Post
Things I am aware of:
- claim kids as dependents
- claim s.7 expenses
- contribute into RESPs.
Check your agreement/final order. Most outline who can claim the kids as dependents and the relevant tax benefits. You cannot claim section 7 expenses on your taxes unless specifically noted. S7 is calculated as the net cost which means the tax benefits come off the top. By claiming them after paying the net cost you have in effect double dipped.

As for tax advicemaximize all your benefits. Medical really makes no difference unless you pay more than $2000 a year. Make charitable donations, make RRSP contributions. If you get a newspaper subscription, there is a tax benefit for that. If you worked from home, theres a tax benefit. A lot of the online tax prep software will give you tips to maximize your tax benefits.

As for the comment about your friend who gets good tax returns, you dont know what is happening. She may have to reduce her s7 claims for repayment by the amount she gets back and also other expenses she pays out for. Or she my have a different situation. I get a hefty tax return but thats because I have maxed out my RRSP contributions from severance and inheritance. I also max out my charitable donations every year and I claim all the tax benefits I can (news subscriptions, work from home etc.)
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Old 02-01-2022, 01:58 PM
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Tayken Tayken is offline
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Anything else I should be doing? Greatly appreciate any and all advice.
Get an agreement on how to file w/ the children. If both parents file all kids... CRA will claw it back from both parents until you sort it out.
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Old 02-01-2022, 02:07 PM
Brampton33 Brampton33 is offline
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Court Order is silent on anything tax related. Just says that we have 50/50 parenting and CS is offset. As far as I know, she will list kids as dependents, as will I.
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Old 02-01-2022, 02:19 PM
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Then one or both of you will end up audited. Your agreement should have been clear on that.
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Old 02-01-2022, 05:04 PM
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CRA has a cute policy. If both parents claim benefits, CRA gives it to neither until they work it out.

It doesn't even come to an audit, I just got an automated message.

Funny story... I was able to retroactively get about 4 years worth of child tax benefits (they were called something else at the time, UCCB and one other?), and they clawed all that money back from my ex. It was pretty sweet.
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Old 02-02-2022, 09:55 AM
Brampton33 Brampton33 is offline
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CRA has a cute policy. If both parents claim benefits, CRA gives it to neither until they work it out.
I already receive my share of CCB on a monthly basis. Its not much, but it helps. I think my post is related to the actual tax return....how to maximize the return in terms of things you can claim. But certainly appreciate the insights shared.
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Old 02-02-2022, 09:23 PM
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I already receive my share of CCB on a monthly basis. Its not much, but it helps. I think my post is related to the actual tax return....how to maximize the return in terms of things you can claim. But certainly appreciate the insights shared.
Oh, that's easy.

A) Open a small business. Claim all sorts of crazy deductions. Only shmucks pay for cellphones and their cars out of net income. Complain about paying too much tax.

B) Be rich, donate "art". Get big tax write off. Complain about paying too much tax.

C) Be rich, buy stocks. Sell after they go up in value. Pay tax on only half of your earned income because people who make money through capital gains are better people. Complain about paying too much tax.

Remember that if you do any of these things, it is important to complain that taxes are killing you, and that you are an awesome job creator who should not be paying tax.

...

Now, if you are dumb enough to make your income through a salary, then I cannot really help you. That's pretty much the worst way to make money, because then you actually have to pay the appropriate level of tax, and there isn't much you can do about it.
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Old 02-02-2022, 11:00 PM
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Janus is back to normal. All is well with the world!
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Old 02-04-2022, 07:08 AM
Brampton33 Brampton33 is offline
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Thanks for the helpful feedback Rockscan. To claim medical things, i would need to spend about $2500/year to claim. But certainly maximizing RRSP and other types of contributions seems to be viable. Based on your comment, it sounds like perhaps the mid-ranged tax software might be worth purchasing, instead of the basic-level one at $19.99.
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