1. Liz, a tax specialist with H&R Block here beside me says that you should definitely file for your taxes. There may be some tax credits you'd miss out on if you didn't file, such as GST, or the Child Tax Benefit, just to name a few.
2. Cleo, a tax specialist of H&R Block says the CRA considers you common law once you have been living together for 12 months. If you have children together, you are common law as soon as you begin living together. Government benefits are calculated based on household income, which could mean your benefits are lower as common law; but, if you recieve benefits you are not entitled to, the CRA will request repayment.
3. You can claim moving expenses if you've moved 40 kilometres closer to a new job location. If you've started a new job and moved closer because of the job, you can claim transportation expenses - the UHaul, airfare - any any moving expenses incurred while in transit - hotels, meals, hiring movers, changing your address. Always hang onto your receipts.
4. You need to decide if your crafts are a hobby or an actual business in which you expect to make a profit. If it's a hobby, you don't have to report it. If it truly is a business, you should report your income and expenses on a business statement (T2125).
5. You should file for both years. You'll miss out on certain credits if you don't file your taxes. You can file for as far back at 10 years. If you owe money to the government, you'll incur penalties and interest for not filing your taxes.
6. If you have a signed T2200, you need to sumit this to the CRA for approval. If approved, your spouse can claim a disability amount and if they don't need the credit, they can transfer it to you. There is a new family caregiver amount that can be claimed for spouses, but not until 2012.
7. My editor has a question, can he claim daycare expenses?
7. Yes, you can claim daycare expenses on your tax return. The lower income spouse gets the credit unless they are in school or in hospital. There are limits on how much you can claim depending on the child's age, so keep an eye out for that. But in most cases, you can claim the full amount.
9. The child needs to claim the tuition on his or her tax return. And then he or she can transfer a maximum $5,000 federal and a matching provincial amount. The child needs to sign the bottom of the T2202A showing the amounts transferred to the parent.
8. The most common credit is the new Children's Art Credit. It includes music lessons, language classes, Girl Guides/ Scouts, and tutoring. For more details, visit the CRA website. Here is the link for the Arts Credit page: www.cra.gc.ca/artscredit
We have 8 H&R Block tax specialists here and our viewers have all phoned in with questions keeping them busy. Great questions, everyone!
10. Regardless of when you get married, your marital status for tax purposes is determined on December 31st of the tax year. So even though you were married in April, you file as "married" for your 2011 tax return.
11. Yes, you can definitely log amendments as far back as 10 years. You would file what's called a T1 adjustment. T1 adjustments can be done to change anything on a tax return. Make sure you've held onto your receipts because the CRA will want to see them when you want to make changes to prior tax returns.
13. One viewer asked: If I make under $20,000, should I still file my taxes?
12. Unfortunately, your dog is not an eligable expense. However, home office expenses can include property tax, mortgage interest, house insurance and utilities.
13. Yes, you should still file your taxes. Even if your income is low, you'd be surprised - you may be eligible for tax credits like the Working Income tax benefit for lower incomes. Your GST and other benefits could also kick in.
14. You are able to report false claims anonymously on the CRA website. Visit the website for more information. www.cra.gc.ca
15. There was a Home Renovation tax credit, but it is over. H&R Block says there are plans to bring it back but nothing has been confirmed. So you should hang onto your receipts because there are potential for you to claim then.
16. You would need to contact UFile technical support for help.
17. No, you cannot claim the costs of steel-toed shoes.The CRA did introduce a non-refundable tax credit called the Canada Employment Amount to cover the costs of workwear, such as steel-toed shoes and anything else you're required to wear on the job. It's a maximum claim of $1,065 and you claim it as long as you're employed in Canada.
18. You should keep your receipts for 7 years.
10. If your employer is reimbursing your mileage, you should not claim expenses on your taxes. If your employer issues you a T2200, there may be certain car-related expenses you're eligible to claim. (Your insurance, your license, toll charges, car payments, just to name a few) You should check with your employer to see if they will issue you a T2200.
20. If you owe the government money, there will be penalties and interest applied as of May 1st. If you don't owe, then there is no penalty- but you should still submit on time.
Sorry that response was for question 19.