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There are plenty of ways you can save during tax season. Below you will find articles on how to save, what you need to file, and other important news for yourself and your family. Check in weekly to see if there is anything new.
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Seven ways your family can save at tax time
Raising a family can be expensive, but there are many benefits, credits,
and deductions that can help your family with costs during the year. They could even lower the amount you owe at tax time! However it is important to file on time if you want your credits.
Check out these potential savings:
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Canada child benefit (CCB) - The CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. The CCB might include the child disability benefit and any related provincial and territorial programs. You could get up to $6,400 annually for each child under the age of 6 and $5,400 annually for each child aged 6-17. Apply for the CCB in one of the following ways:
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Automated Benefits Application
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My Account
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Form RC66, Canada Child Benefits Application
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Child care expenses – Did your kids attend daycare or a child care program in 2016? You or your spouse or common-law partner might be able to claim what you spent on eligible child care in 2016.
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Working income tax benefit – If you are a working family or individual with a low income, you might be eligible for this refundable tax credit intended to provide tax relief to low-income Canadian workers. Eligible individuals and families may be able to apply for advance payments.
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Child disability benefit– You might be eligible for this tax-free benefit if you care for a child under the age of 18 who is eligible for the disability tax credit.
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Goods and services tax/harmonized sales tax (GST/HST) credit – The GST/HST credit is a tax-free quarterly payment that helps families and individuals with low or modest incomes offset all or part of the GST and HST that they pay. If you are eligible, you will receive your tax-free payments in January, April, July and October. The amount of your payment will depend on your family income and the number of children you have in your care. A family could get up to $552 per year, plus an additional $145 annually for each child.
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Children’s fitness tax credit – Claim eligible fees paid in the year for registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program of physical activity. For 2016, the maximum eligible fees in the year is reduced from $1,000 to $500, but the additional amount of $500 for children eligible for the disability tax credit has not changed. Therefore the maximum credit is reduced to $75 ($150 for a child eligible for the disability tax credit).
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Children’s arts tax credit - Claim eligible fees paid in the year for the cost of registration or membership of your or your spouse’s or common-law partner’s child in an eligible program of artistic, cultural, recreational or developmental activity. For 2016, the maximum eligible fees in the year is reduced from $500 to $250, but the additional amount of $500 for children eligible for the disability tax credit has not changed. Therefore the maximum credit is reduced to $37.50 ($112.50 for a child eligible for the disability tax credit).
How your tax correspondence is getting clearer
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Did you know?
Every year, the Canada Revenue Agency (CRA) sends out more than 130 million pieces of correspondence to Canadians. If you received a notice or letter in 2016, you may have noticed that it has a new look. That’s because the CRA has been improving the way it communicates with Canadians by making its correspondence easier to read and understand.
Everything just got clearer
Following an extensive evaluation completed in the fall of 2014, the CRA began redesigning its correspondence, focusing on how they are structured, designed, formatted, and written. The result is simple and clear notices and letters that outline key information you need to know. Now, it’s easier than ever for you to understand your taxes.
With nearly 75% of correspondence already revised, improvements to more complex notices and letters are underway. Whether you’re a business, family, or individual, you can expect to see more improvements to your correspondence in the coming months.
What’s new for 2017?
Starting in February 2017, the CRA will begin sending out enhanced Notices of Assessment to more than 29 million Canadians. The revised notice builds on improvements made in 2016. This included putting the most important information on the first page, making it easier to read and understand. This year, the notice has been further improved to include an account summary with an explanation of how you were assessed and what that means for you. It also includes a security feature where part of your Social Insurance Number is hidden, helping to better protect your information and prevent fraud.
Weekly Updates
Directly from the Canada Revenue Agency
Involved in the sharing economy? Know your tax obligations!
What is the sharing economy?
The sharing economy is a technologically fueled way to consume and access property and services. In this economy, communities pool, loan, and share their resources through networks of trust.
The five key sectors of the sharing economy are:
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accommodation sharing
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ride sharing
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music and video streaming
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online staffing
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peer/crowd funding
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The Canada Revenue Agency (CRA) realizes that new kinds of economic activity such as the sharing economy are becoming a bigger part of the general economy. The CRA is co-operating with industries, the provinces, and the territories to identify and address areas where the tax system and tax compliance might be affected.
What are your tax obligations?
If you are an individual or a business participating in the sharing economy, you must report all the income you earn through sharing-economy activities. You must also meet your goods and services tax / harmonized sales tax (GST/HST) reporting and remittance requirements.
If you under report or do not report your sales or income, you are participating in the underground economy and this could result in serious consequences. If you get caught evading tax, you may face fines, penalties, or even jail time, in addition to paying the taxes owing on unreported amounts.
If you have to register for and collect GST/HST on your transactions, but you do not, the CRA will charge you interest or penalties or both, depending on the circumstances.
Generally, if you are a small supplier whose supplies of GST/HST taxable property and services are $30,000 or less a year, you do not have to register for a GST/HST account. However, you can voluntarily register so you can take advantage of input tax credits to recover the GST/HST paid or payable on your purchases and operating expenses. Visit the CRA website for more information about your GST/HST obligations.
How to correct your tax affairs
To correct your tax affairs and report income that you did not report in previous years, you have several options:
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You can ask to change previous years’ income tax and benefit returns. Details are available at How to change your return. In certain circumstances, you may qualify to use the Voluntary Disclosures Program.
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Information on how to correct a GST/HST return can be found on the CRA website.