5 Tips on How to Maximize Tax Return in Lakeland, Alberta

No matter the time of year, you should be thinking about how to maximize tax return value when it comes time to file. Your taxes are an overall assessment of your yearly earnings, after all. It’s important to be thinking about it throughout the year so that you’re prepared for the outcome when you file.

Budgeting for a tax refund can mean a lot of things to your household. It can serve as the down payment for a new car, pay for a family vacation, or stack away into savings for a rainy day. Getting more back means you’ll have more money to put in multiple areas of your financial portfolio.

If you’re interested in the best way to file taxes for how to maximize a tax refund, then you’ve come to the right place. Here, we’re discussing some tips that can help you. Keep reading to learn more.

How to Maximize a Tax Return in Canada

The first step to maximizing your tax return is knowing which deductions are available to you and whether or not you’re eligible to take them.

Family Deductions

Listed under family deductions are both the Universal Child Care Benefit and the Child Care Expense deductions. Another credit to be aware of is the Children’s Fitness tax credit which you can claim for physical activity programs.

Student Deductions

Students can claim interest paid on their student loans. If you’re a student and didn’t know this prior to now, you can claim back up to five years as a personal tax claim.

Public Transit Deductions

If you used public transit regularly throughout the year, then you can claim the cost of your transit passes. The passes should have allowed you unlimited travel for a minimum of 20 consecutive days in any 28 day period.

Moving Expense Deductions

Whether you’re a student that had to move closer to school or you were forced to move for a new job, you can claim your moving expenses. The only stipulation is that you must live at least 40 kilometres closer to your new school or job from where you did before.

Tax-Free Savings Account

You can also sign up for a TFSA with an annual contribution amount of up to $10,000. Make sure you read up on the current legislation for the following tax year to understand the contribution amounts allowed. Although you pay tax on TFSA contributions in the year in which it was contributed, you won’t pay tax when you withdraw it — it’s the opposite with an RRSP.

Final Thoughts

Tax laws and credits are constantly changing which can significantly impact your tax refund and return. The Canadian government has a goal in mind of enabling you to recoup the cost of living, so make sure you’re claiming all of the possible credits available to you. It’s also a good idea to be aware of which credits you will claim so that you can keep receipts throughout the year that you’ll need to file with your return.

Of course, make sure that you file your taxes on time each year. Late penalties will add up quickly and only compound your balance due. Not to mention cutting into your refund.

If you’re still wondering how to maximize tax return potential, don’t hesitate to contact us. You can find us in Cold Lake and Bonnyville, Alberta.