Dec 19, 2016
Personal Investor: Money-saving tax credits for 2016
By Dale Jackson
Money came, and money went in 2016 – and some money could be coming back.
Several tax credits are available for regular expenses this year. They vary from individual to individual, and province to province, but here are some basic credits that could apply to you.
Child tax credit: for the 2016 tax year families can claim $2,300 for each child under 18.
Children’s fitness and arts credit: up to $1,000 for fitness, up to $500 for arts per child under 16. The activity must be listed as eligible on the CRA website.
Family caregiver tax credit: taxpayers providing ongoing care for a spouse, common-law partner or minor children who are ill can claim an addition $2,093. The CRA normally requires a signed statement from a medical doctor stating when the impairment began and how long the impairment is expected to last.
Public transit credit: Canadians who use public transit can claim the full amount on eligible transit passes as long as they travel within Canada. Monthly passes or longer can be claimed but in some cases shorter duration passes are acceptable to the CRA if they are for unlimited travel for an uninterrupted period of at least five days and they add up to at least 20 days in a month. In other words, single fares are not eligible for the credit.
Modes of transportation include local buses, streetcars, subways, commuter trains or local ferries.
Education tax credit: full-time and part-time students can claim a basic credit as well as a textbook credit and a credit for interest paid on student loans.
For the brains in the family - scholarships, bursaries and fellowship income are fully exempt from tax when the income is received in connection with a program for which the student will get an education tax credit.
Medical expense tax credit: Uninsured costs associated with medical expenses for individuals or their dependents are fully eligible for the medical expense tax credit. To qualify, the medical expenses must have been paid by the individual making the claim or a legal representative and be approved by the CRA.
