From: Canuck57@nospam.com   
      
   On 11/02/2014 5:12 AM, Alan Baggett wrote:   
   > Don't Forget to Take Credit for Your Tax Credits! :CRA SOTW   
      
   I always do.  I go through every line every year to check if I can apply   
   a credit.   
      
   > Most taxpayers leaving money on the table   
      
   Probably not that much money.  Most credits are 15% max.  So if   
   government says they give you a $500 credit, at most it can do us lower   
   taxes by $75 and not $500.   
      
   Hidden inside the complexity is how people get screwed the most.   
      
   > REGINA -- Nearly three out of four Canadians are leaving money on the table   
   when they fill out their annual income tax returns, according to H&R Block   
   Canada.   
   >   
   > Cleo Hamel, a senior tax analyst with the country's leading tax preparation   
   firm in Calgary, said most Canadians can claim at least one tax credit, but   
   only one out of four actually did on their 2007 tax forms.   
   >   
   > "According to a survey we had conducted (in December), three-quarters of the   
   population either didn't take advantage or weren't aware they could take   
   advantage (of new tax credits on the 2007 tax return)," Hamel said in a recent   
   interview.   
   >   
   > "How can you leave that kind of money on the table?" Hamel said, adding the   
   survey results were "quite shocking.''   
   >   
   > After all, Hamel said the Canada Revenue Agency (CRA) isn't exactly hiding   
   the information on tax credits from taxpayers. "The CRA has put a lot of   
   effort into advertising these credits -- television ads, ads in the paper --   
   it's amazing."   
      
   H&R block paid advertisement?  So what if you miss a $75 credit when H&R   
   will charge you $150 and up to do relatively simple taxes?   
      
   Might be better off to buy a tax program like UFile and learn the tax   
   code and read where the deductions go.   
      
   This way you understand more about the most expensive item in your   
   lives, government taxes.  And do the math as little differences like   
   type of income matters.   
      
   > For whatever reason, Prairie residents were more likely to claim the new tax   
   credits (42 per cent), versus Quebec residents, who were least likely to claim   
   them (18 per cent).   
   > The most popular tax credit was the child tax credit, which was claimed by   
   18 per cent of survey respondents, followed by the pension income splitting   
   tax credit (16 per cent) and transit pass credit (15 per cent).   
   >   
   > The children's fitness credit (14 per cent) and the working income tax   
   credit (11 per cent) were also mentioned by respondents.   
   >   
   > New this year are the first-time home buyers credit of $750, the $5,000   
   increase in allowable withdrawal from RRSPs to $25,000 for home purchases, and   
   the home renovation tax credit of $1,350.   
   >   
   > Hamel said the home renovation tax credit can be used for just about any   
   type of repair or renovation job, including painting, building a fence or   
   deck, to replacing a furnace.   
   > "The technical definition (of renovation) is anything that adds value to   
   your home,'' Hamel said. And while $1,350 probably won't cover all or most of   
   the cost of a typical renovation job, every little bit helps.   
      
   ... drivel snipped...   
      
   Its why most people should do your own taxes and understand the tax code.   
      
   If you go line by line and though the interview questions of a UFile or   
   other tax program you will catch the deductions and not have to pay huge   
   to H&R.   
      
   And afterwards you have an idea of what is and is not deductible for the   
   next year.   
      
   Mind you, I do recommend using a tax accountant if it gets complex and   
   you need learning time, like international investments, business capital   
   gains and messy.  But for 85 out of 100 people, a tax program and a few   
   Saturdays is all it takes.  But even this isn't bad if you have prior   
   examples.  Paid H&R $315 for a simple 3 page 1040NR, after that I did   
   them myself.   
      
   For Canadian taxes, I use UFile.  Why is simple.  I actually already   
   have used the 2013 UFile to estimate 2014 taxes.  I use it as a forward   
   tax view, entering in dividends, gains, income through the year to know   
   my current tax position.  If I want to sell a stock with $25,000 in   
   gains, or take $25,000 out of the RRSP in retirement, I can assess the   
   tax implications and make more tax efficient choices.   
      
   Yep, I already have an idea of what my 2014 taxes will be.  2013 is   
   history, only waiting for one tax slip then file...   
      
   Why is simple, I might get $50k of income one year, $90k the next, but   
   if I can delay or advance realization of income, I can average my taxes   
   between two years for a lower rate.   
      
   A tax dollar saved is as good as or better than $2 earned.   
      
   I even used UFile to estimate my taxes if I moved to BC in retirement.   
   Isn't just PST/land and home transaction taxes, BC is tax greedy so we   
   canceled the idea to move to BC as the money is better spent on 5   
   vacations for two.   
   --   
   Socialist-statism corruption is a great idea so long as the credit is   
   good and other people pay for it. When the credit runs out and those   
   that pay for it leave, they can all share having nothing but   
   unemployment, debt and discontentment.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)