From: AlanBaggett@volcanomail.com   
      
   The five most wrongly claimed tax deductions: CRA SOTW   
      
   Jamie Golombek | March 20, 2015 | Last Updated: Mar 20 2:04 PM ET   
       
   Here are the expenses Canadians try to claim that Canada Revenue Agency says   
   are simply not eligible.   
   Tax tidbits: 4,818,398 returns already filed -- tick, tock   
   1. As of March 16, about one in five Canadians (19.7%) filing their taxes   
   through TurboTax has claimed charitable donations. The average donation amount   
   currently stands at $1.046.70, and (fun fact) Nunavut had the top highest   
   average donation amount, $1,   
   490.71, by province.   
   2. Odd conditions on the Family Tax Cut: Savings aren't allowed for those who   
   were in prison for at least 90 days, went bankrupt in 2014 or split a pension   
   (graspers).   
   3. Are you a good-deed-doer? The new search-and-rescue volunteer credit allows   
   eligible personnel for ground, air and marine search and rescue teams to claim   
   up to $3,000. You really had to do your time, though, volunteering for at   
   least 200 hours of    
   service.   
   4. One in four Canadians will drag their heels until the last week before   
   deadline to file. Will you be one of the 25% tardy cohort?   
      
   1. MOVING EXPENSES   
      
   Don't do this: Expenses like home staging, the cost of house hunting and job   
   hunting trips, mail-forwarding charges, storage fees near your former   
   residence, and the cost of repairing your old residence prior to selling it   
   don't qualify.   
   In addition, the CRA says that sometimes receipts are either not sent in when   
   requested or the receipts themselves are not valid, perhaps because the dates   
   on the receipts don't correspond to the moving dates.   
   Do this: If you moved in 2014, you can write off your moving expenses provided   
   the distance between your old residence and your new work location is at least   
   40 kilometres greater than the distance between your new residence and the new   
   work location.   
      
   2. MEDICAL EXPENSES   
      
   Don't do this: Taxpayers often try to claim the costs of vitamins, natural   
   supplements, or over-the-counter medications, which are not valid expenses.   
   Similarly, medical supplies such as rubbing alcohol, bandages, and shoe   
   inserts do not qualify for the    
   credit.   
   Do this: Valid medical expenses qualify for a 15% federal credit as well as a   
   provincial credit, provided they exceed a minimum threshold equal to the   
   lesser of 3% of your net income or $2,171.   
      
   3. PUBLIC TRANSIT AMOUNT   
      
   Don't do this: The CRA says that in some cases, a copy of the transit pass was   
   either not submitted when requested or the pass itself was not complete as it   
   was missing the name or unique identifier or the information on the pass was   
   not legible.   
   In other cases, the pass wasn't eligible because either there were not enough   
   trips in a month, there were interruptions in use or travel for the period was   
   limited.   
   Do this: You can claim the cost of monthly or annual public transit passes for   
   travel within Canada on public transit, but these passes must permit unlimited   
   travel on either local buses, streetcars, subways, commuter trains or buses,   
   or even local    
   ferries.   
   While you may also be able to claim the cost of shorter-duration passes, this   
   only applies if each pass entitles you to unlimited travel for an   
   uninterrupted period of at least five days and you purchase enough that you   
   are entitled to unlimited travel    
   for at least 20 days in any 28-day period.   
   In some cases, electronic payment cards also qualify, if the card is used to   
   make at least 32 one-way trips during an uninterrupted period no longer than   
   31 days, provided you can get a receipt that proves both the cost and usage of   
   the card.   
      
   4. INTEREST ON STUDENT LOANS   
      
   Don't do this: Sometimes students attempt to claim interest on personal loans   
   and foreign student loans, both of which are ineligible. Sometimes the   
   receipts are not official and don't bear the student's name.   
   Do this: Student loan interest is generally eligible for a tax credit but only   
   for interest paid on a student loan made under the Canada Student Loans Act,   
   the Canada Student Financial Assistance Act, or a similar provincial or   
   territorial government law.   
    You can't claim interest paid on any other kind of loan, like a financial   
   institution's line of credit.   
      
   5. TUITION, EDUCATION AND TEXTBOOKS AMOUNTS   
      
   Don't do this: Sometimes claims for the tuition credit aren't supported by   
   official receipts but rather invoices. In other cases, the educational   
   institution is not a recognized institution. And, for purposes of claiming the   
   education and textbook    
   amounts, sometimes part-time months are claimed as full-time and vice versa.   
   Do this: While a non-refundable credit is available for the cost of tuition,   
   be sure to have the official tuition receipt. The education amount is $400 for   
   each month of full-time attendance and $120 for each month of part-time   
   attendance. The textbook    
   amount is $65 for each month of full-time attendance and $20 for each month of   
   part-time attendance.    
      
   Jamie Golombek, CPA, CA, CFP, CLU, TEP is the Managing Director, Tax & Estate   
   Planning with CIBC Wealth Advisory Services in Toronto.   
      
   ----------------------------------------------------------   
   Miss a Tax Tale Miss a lot!   
   Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com   
      
   ------------------------------------------------------------   
   Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible   
      
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