From: canada.revenueagency@hotmail.com   
      
   Don't Forget to Take Credit for Your Tax Credits! :CRA SOTW    
      
   Most taxpayers leaving money on the table   
      
   By Bruce Johnstone, Canwest News Service    
      
   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."   
      
   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.   
      
   And do-it-yourselfers can also claim the credit, as long as they show receipts   
   for the materials and supplies used in the project, she added. "It doesn't   
   have to be something that a contractor does. Whatever it costs you in terms of   
   materials, supplies,    
   permits, keep your receipts."   
      
   While the uptake on the renovation tax credit should be fairly high, Hamel   
   said taxfilers frequently forget to claim expenses that are less obvious, like   
   health care premiums.   
      
   "If you're currently paying a health or dental (plan) premium through payroll   
   deduction, that is included as a medical expense. A lot of people forget about   
   it because it's included on the T-4 (statement of income and deductions),''   
   she said. "That adds    
   up to a lot of money."   
      
   Similarly, receipts for donations to charities can be accumulated over a few   
   years and submitted for an even bigger deduction, she said.   
      
   "Unfortunately, (some) people are unable to donate a lot of money. Maybe they   
   can donate $50 or $60 a year. Know how to maximize it? Just save (the   
   receipts) and you can get more money back. You get a 15-per-cent credit on the   
   first $200 and you get 29    
   per cent for every dollar over $200 that you donate."   
      
   As with medical and dental expenses, donations made by other family members   
   can be deducted by one taxfiler to maximize the tax savings, she said.   
      
   The Canada employment tax credit is another tax break that has little   
   awareness among taxpayers, H&R Block says.   
      
   Only seven per cent of respondents reported claiming the $1,000,   
   non-refundable tax credit. That's like throwing away money, Hamel says.   
      
   "If you have a T-4 for employment income, you qualify to get the credit. It   
   translates into $150 in federal tax savings. How many coffees can you buy in a   
   year for $150?"   
      
   The transit pass credit is another frequently unclaimed tax break, with only a   
   few rules to follow. "It's got to be a monthly pass or four consecutive weekly   
   passes. Keep those passes and the receipts, and keep them for the whole   
   family."   
      
   Even if your child has a subsidized bus pass, the remaining amount can be   
   claimed under the transit tax credit, she added.   
      
   The child tax credit, which provides $300 per child under the age of 18, is   
   the most popular tax credit. But the children's fitness credit may get   
   overlooked. "If the kids are in hockey, soccer, or dance, you can claim up to   
   $500."   
      
   While each tax credit may not seem like much, taken together they can add up   
   to significant savings.   
      
   "If you take each these (tax credits) on their own, it might not be a lot. But   
   when you consider the fact that most families can probably take advantage of a   
   couple of them, it could become significant."   
      
   Regina Leader-Post   
   (c) Copyright (c) The Regina Leader-Post   
      
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