15 tax credits to help clients save

Update clients on the following credits, which could reduce the amount they owe at tax time, says CRA.

1. Working income tax benefit (WITB) – Working individuals and families with low income may be able to claim this refundable tax credit. The WITB includes a supplement for individuals who qualify for the disability amount. Eligible individuals and families may also apply for advance payments.

Read: Does your client have U.S. tax risk?

2. Children’s fitness tax credit – Did your client’s children play soccer, take ballet classes, or participate in a program of physical activity in 2012? If so, you may be able to claim up to $500, per child, of the cost of these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 in eligible expenses.

3. Children’s arts tax credit – Did your client’s children participate in a program of artistic, cultural, recreational, or developmental activity in 2012? If so, you may be able to claim up to $500 of the money spent per child on these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 on registration or membership fees for an eligible program.

Read: Don’t waste charity tax credits

4. Childcare expenses – Did your client’s children attend daycare or a program such as a summer day camp in 2012? You or your spouse or common-law partner may be able to claim what you spent on eligible childcare in 2012.

5. Family caregiver amount – If your client has a dependant with a physical or mental impairment, he may be able to claim up to an additional $2,000 when he claims certain non-refundable tax credits.

6. Goods and services tax/harmonized sales tax credit – The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST they pay.

Read: 5 tips for filing taxes online

7. Public transit amount – Did your client or use public transit in 2012? He may be able to claim the cost of certain public transit passes or electronic payment cards under this non-refundable tax credit.

8. Homebuyer’s amount – Did your client buy a home in 2012? He may be able to claim a non-refundable tax credit of up to $750 for the purchase of a qualifying home.

9. Child disability benefit – He may be eligible for this tax-free benefit if he cared for a child under the age of 18 who is eligible for the disability tax credit.

10. Canada child tax benefit – A tax-free monthly payment that helps eligible families with the cost of raising children under the age of 18.

Read: Educate clients about TFSA stipulations

11. Universal child care benefit – If your client has children under the age of six, he may be eligible for this taxable benefit, which supports childcare choices for families.

12. Medical expenses – He may be able to claim a non-refundable tax credit based on the medical expenses paid for himself, his spouse or common-law partner, or his children for any 12-month period ending in 2012.

13. Disability amount – If he or a family member has a severe and prolonged impairment in physical or mental functions, he may be able to claim this non-refundable tax credit.

14. RRSP – If he saved for his retirement in 2012 by investing in RRSPs, he may be able to deduct his contributions to reduce your tax.

Read: RRSPs are more than tax tools

15. RDSP – This is a savings plan to help Canadians with disabilities and their families save for the long-term financial security of a person who is eligible for the disability tax credit.