A Guide to Maximizing Your Canada and US Tax Refund

US-Canada Tax preparation is no doubt daunting, but it can be turned into a boon if the returns are kept in mind. Did you know that cross-border taxes can be maximized by being a little proactive and keeping in mind some important tax tips?

Family Filing
Donations, political contributions, and medical expenses can be claimed by spouses including several other nonrefundable tax credit. Spouses can also transfer nonrefundable tax credits to each other. Filing the familial net income wisely can also yield greater refundable tax. Bigger refunds and lower overall tax bills usually pave the way to bigger win.

Family Deductions
Due to latest changes in the Universal child care benefit (UCCB), it is no longer available from the year 2018.

Deductions For Students

The best thing (and probably one not many students are aware of) is that Canadian students can claim the interest they have paid on student loans. Also, the best part is that even if you weren’t aware of this information up until now, you could still claim not only the 2017 student loan interest but also that of the previous five years. Now isn’t that amazing!

Employment Deductions
If as a part of your employment contract, you are expected to pay out of the pocket expenses, a possible deduction on your tax return may be in effect but only when you have paid on your own under your contract of employment and the employer has certified it under the form T2200.

Special Deductions For Writers And Artists
Artists and musicians who are employed can claim expenses for their literary works, drama and music compositions, or other creative performing works of art. You can mention computer costs, art supplies, home office costs, ballet shows to claim your expenses, but the maximum claim can be 20% of the net income.

Non-Refundable Tax Credits Claim
Under a new family caregiver amount, a $2000 is paid if a person is taking care of a spouse, minor child or adult. Expensive ambulance fees and medical expenditures can also be claimed.

Moving Deduction
If you had to move to take a new course or for employment at a new workplace, which is now at least 40 KMs closer to your destination of new job or training center, you can claim this deduction from your tax. Make sure to provide the receipts for your move.

Utilizing Pension Income Splitting Optimally
If a company plan allows pension, up to 50% of your pension benefits can be transferred to your spouse, should you plan to take advantage of pension splitting at any age. In most cases, you have to wait for the income split until you reach age 65.

File On Time
Simply submitting a tax return late can incur additional charges and nobody wants that. So, it’s a given!

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