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  • #1
    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 advice…maximize 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, there’s 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 don’t 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 that’s 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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    • #2
      Originally posted by Brampton33 View Post
      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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      • #3
        Then one or both of you will end up audited. Your agreement should have been clear on that.

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        • #4
          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.

          Comment


          • #5
            Originally posted by Brampton33 View Post
            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.

            Comment


            • #6
              Janus is back to normal. All is well with the world!

              Comment


              • #7
                Originally posted by Brampton33 View Post
                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.

                Use the online software. It’s cheaper than the one in store and it only charges by the number of returns. Ive been using ufile for years now.

                Max everything you can. If you take transit, there is a deduction. Have a newspaper subscription, deduction. Work from home for more than six months etc. Ufile asks questions at the end about any other circumstances. In our house we prioritize RRSP contributions over a lot of other things. This helps our tax bill.

                Comment


                • #8
                  Originally posted by Brampton33 View Post
                  Agreed on RRSP. Better to keep the money in your own account and the effect is payment of less taxes. For work from home, I currently pay all inclusive rent. So I do not see the added cost of hydro, gas, water, etc. However the cost of those is reflected in my rent. Can I still claim that stuff? Anything else re: work from home. Its not like I kept the receipt for my printer ink.

                  The work from home credit was introduced last year for 2020 taxes due to so many people working from home. Anyone can claim it who worked from home for at least six months.

                  If you work from home predominantly you may need to look at how to claim it. I know how to claim a business operating at home as I did it for my mom for a few years when she ran a day care. But that was because she used portions of the home for the business. Not sure how it works for simply working from home.

                  Comment


                  • #9
                    Hi- There is a difference if you are an employee of a company or you own your company and work from home.
                    If you are an employee- there are limited deductions; if you own- you can attribute a percentage of your costs as business expenses (rent, mortgage, utilities, internet, etc).

                    Question- Would 100% of those business deductions come back as Line 150 income for child support purposes or only if the amount is over a reasonable threshold- say 5-10%?

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                    • #10
                      It's not much, but for those people living in Ontario with child care expenses, the provincial government has thresholds for reimbursement levels. This year, they have increased the payment by 20%.

                      Look at the income threshold levels, and if you can make an RRSP contribution to get you to the next level, it could be worth it. For example, I was able to make a $100 contribution that generated a $162 refund because I was able to drop my taxable income to a higher level of reimbursement.

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                      • #11
                        Originally posted by DHTO View Post
                        It's not much, but for those people living in Ontario with child care expenses, the provincial government has thresholds for reimbursement levels. This year, they have increased the payment by 20%.
                        Only if you are the parent allowed to claim this. If you pay your share of the net cost then the tax deduction is already taken off your portion for reimbursement.

                        Comment


                        • #12
                          Thanks for the laugh Janus

                          Originally posted by Janus View Post
                          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.

                          That really did make me laugh out loud!!!!

                          Comment

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