Good evening folks. My name is Daniela Minicucci and I'm working alongside Cleo Hamel, Senior Tax Analyst, H&R Block Canada Inc. We're here to answer all of your tax questions.
Let's get the conversation started.
Please feel free to send us a question or phone in to speak directly to one of our tax experts.
You can reach us at 1-800-499-3930.
Hi viewer, thanks for your question.
RESP income is not taxable. Any early redemptions are not reported on a tax return but you won't receive any government grants associated with the RESP contribution.
Tax Tip: Students! Don't forget to claim your tuition receipts.
Your son will still need a TL11A form from the university which means he can claim his tuition, however he may not be able to claim the education credit.
Hi Dustin, thanks for your question. You are eligible to claim the WITB credit (a refundable tax credit).
Hi Dakota, your question is similar to Dustin's below. As you're 16-years-old, you are eligible to file a tax return and will likely be eligible for various credits.
Hi Viewer, Thanks for your question.
A T5 represents investment income and it has to be reported on the tax return.
Regardless of who pays the tuition, the receipt is issued to the student for the amount paid and the student must report it on their tax return. If the student doesn't need all of the tuition credit, they have the ability to transfer up to 5000 dollars to a parent or carry it forward to the next tax year.
If you pay premiums for health and dental plans through payroll deductions, you are able to claim those premiums as an eligible medical expense. This information is found on your year end pay stub - it may not be on your T4.
You must determine the fair market value of your car on Jan. 1 or on the date it was first used for work.
The first car is reported from Jan 1 to the last day you used it. The second vehicle would be reported from the day you started using it to the end of the year.
You would have to report one car as being disposed and one car as being purchased(using fair market value).
Hi Luis, you are able to claim the following expenses:
-moving expenses (if you moved more than 40 kms and you are actually living in a residence, either renting or owned). The expenses are deducted against the income you earn at your new job.
-any employment related expenses (gear, etc.). These can only be deducted if the items are required for your employment. You'll need a signed T 2200 from your employer.
If you have a capital gain in the tax year, you will be able to apply any capital losses from prior years. It is best to check with CRA to find out what net capital losses are available from previous tax years.
A reminder folks:
You must file your taxes by May 2.
For H&R Block questions, please visit your local office or call 1-800-HRBlock.
What are the penalties if you file late and are there any extenuating circumstances where the penalties will be waived?
You should be filing every year. That way, you'll keep on top on any government benefits you're entitled to and, if you're getting a refund, the government doesn't pay you interest on it. By the way, the CRA keeps track if you consistently file.
Yes, provincial tuition transfers are available, however the education portion is at a different value provincially than federally. Remember to have your son sign the back of the tuition receipt to authorize the transfer.
If you mail in your return, include a copy of your tax return. Also, a copy of all T-slips (T-3, T-4, etc) and photocopies of receipts.
You can still claim him or her as a dependant on your tax return if at sometime during the year you were single, seperated, widowed or divorced.
You must file individually. Separate SIN, separate information in separate envelopes.
Hi Steph, could you clarify your question please.
Hi Viewer, unless your child has a disability, you can only claim them as a dependant up to and including the year in which they turn 18, and must be single, separated, widowed, or divorced sometime during the year.
Thanks for your question, Steph.
Unfortunately, you cannot choose to claim your medical expenses before your tuition credits. The CRA dictates the order of claiming non-refundable credits as per Schedule 1 (federal schedule). It seems unfair, we understand, but you must claim your tuition before medical.
Transit riders, FYI:
Consolidate all of your transit passes and receipts to save federal income tax using the the federal public transit pass credit on Schedule 1.
If you're claiming this for the home reno tax credit, the receipts can only be claimed on the 2009 tax return and they must be dated between Jan 28, 2009 to Jan 31, 2010. The receipts must be in your son's name.
That was a great discussion, folks. Thanks for taking part. Good night from Global!
If you have more tax related questions, feel free to call in on Monday at 1-800-499-3930 or join us again online at 6pm ET (4pm MT) to take part in our Helpline Taxes blog.