Deductions, Deductions, Where Fore Art Thou Deductions?

For those of you who prefer to wait until the last-minute to do your taxes – remember the deadline is May 5th, 2014 this year only – you might be just now looking for items to deduct in order to reduce an amount owing, or just because you have to get that information and now you are wondering if they are deductible.

Or, maybe your tax return has been completed for you and now you are holding the draft of that return and before you sign it – which tells the CRA that you agree with the information in it, so you cannot say I didn’t know what was being filed! – and you want to make sure your accountant / tax preparer did their job and notified you of all the eligible deductions you are entitled to, then this post will be quite useful to you!

The big question: What you can deduct?

When preparing your tax return there are many deductions and tax credits you may be eligible to claim in order to reduce the amount of tax you must pay, if they apply to you.

Any eligible deductions are reported on lines 205 to 485 of your personal tax return.  More specifically, deductions from income and tax credits are reported on lines 205 to 485 and these lines are deducted from line 150 to give you your net income amount (line 236).

Here is a line index from the Canada Revenue Agency website listing the deduction and for more information you will need to follow the link and read the details.

• Line 205 – Pooled registered pension plan (PRPP) employer contributions
• Line 206 – Pension adjustment
• Line 207 – Registered pension plan (RPP) deduction
• Line 208 – RRSP/PRPP deduction
• Line 210 – Deduction for elected split-pension amount
• Line 212 – Annual union, professional, or like dues
• Line 213 – Universal child care benefit (UCCB) repayment
• Line 214 – Child care expenses
• Line 215 – Disability supports deduction
• Lines 217 and 228 – Business investment loss
• Line 219 – Moving expenses
• Lines 220 and 230 – Support payments made
• Line 221 – Carrying charges and interest expenses
• Line 222 – Deduction for CPP or QPP contributions on self-employment and other earnings
• Line 223 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income
• Line 224 – Exploration and development expenses
• Line 229 – Other employment expenses
• Line 231 – Clergy residence deduction
• Line 232 – Other deductions
• Line 235 – Social benefits repayment
• Line 236 – Net income

Lines 244 – 260 are deducted from line 236 to give you your taxable income amount (line 260).

• Line 244 – Canadian Forces personnel and police deduction
• Line 248 – Employee home relocation loan deduction
• Line 249 – Security options deductions
• Line 250 – Other payments deduction
• Line 251 – Limited partnership losses of other years
• Line 252 – Non-capital losses of other years
• Line 253 – Net capital losses of other years
• Line 254 – Capital gains deduction
• Line 255 – Northern residents deductions
• Line 256 – Additional deductions
• Line 260 – Taxable income

Lines 300 – 378 are non-refundable tax credits and reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference. Remember to claim the corresponding provincial or territorial non-refundable tax credits to which you are entitled on your provincial or territorial Form 428.

• Line 300 – Basic personal amount
• Line 301 – Age amount
• Line 303 – Spouse or common-law partner amount
• Line 305 – Amount for an eligible dependant
• Line 306 – Amount for infirm dependants age 18 or older
• Line 308 – CPP or QPP contributions through employment
• Line 310 – CPP or QPP contributions on self-employment and other earnings
• Line 312 – Employment insurance premiums through employment
• Line 313 – Adoption expenses
• Line 314 – Pension income amount
• Line 315 – Caregiver amount
• Line 316 – Disability amount (for self)
• Line 317 – Employment insurance premiums on self-employment and other eligible earnings
• Line 318 – Disability amount transferred from a dependant
• Line 319 – Interest paid on your student loans
• Line 323 – Your tuition, education, and textbook amounts
• Line 324 – Tuition, education, and textbook amounts transferred from a child
• Line 326 – Amounts transferred from your spouse or common-law partner
• Line 330 – Medical expenses for self, spouse or common-law partner, and your dependent children born in 1996 or later
• Line 331 – Allowable amount of medical expenses for other dependants
• Line 349 – Donations and gifts
• Line 350 – Total federal non-refundable tax credits
• Line 362 – Volunteer firefighters’ amount
• Line 363 – Canada employment amount
• Line 364 – Public transit amount
• Line 365 – Children’s fitness amount
• Line 367 – Amount for children born in 1996 or later
• Line 369 – Home buyers’ amount
• Line 370 – Children’s arts amount
• Line 375 – Provincial parental insurance plan (PPIP) premiums paid
• Line 376 – PPIP premiums payable on employment income
• Line 378 – PPIP premiums payable on self-employment income

Lines 405 – 485 are your federal and provincial or territorial taxes payable, your federal and provincial or territorial tax credits and your refund or balance owing amounts. The federal and provincial or territorial tax credits reduce your tax payable. If the total of these credits is more than your total tax, you could get a refund for the difference. Claim all available provincial or territorial tax credits on your provincial or territorial form which may be applicable to you.

• Line 405 – Federal foreign tax credit
• Line 409 – Federal political contributions – total contributions
• Line 410 – Federal political contributions – tax credit
• Line 412 – Investment tax credit
• Lines 413 and 414 – Labour-sponsored funds tax credit
• Line 415 – Working income tax benefit (WITB) advance payments
• Line 418 – Special taxes
• Line 420 – Net federal tax
• Line 421 – CPP contributions payable on self-employment and other earnings
• Line 422 – Social benefits repayment
• Line 424 – Federal tax on split income
• Line 425 – Federal dividend tax credit
• Line 426 – Overseas employment tax credit
• Line 427 – Minimum tax carryover
• Line 428 – Provincial or territorial tax
• Line 430 – Employment insurance premiums payable on self-employment and other eligible earnings
• Line 432 – Yukon First Nations tax
• Line 435 – Total payable
• Line 437 – Total income tax deducted
• Line 438 – Tax transfer for residents of Quebec
• Line 440 – Refundable Quebec abatement
• Line 448 – CPP overpayment
• Line 450 – Employment insurance overpayment
• Line 452 – Refundable medical expense supplement
• Line 453 – Working income tax benefit (WITB)
• Line 454 – Refund of investment tax credit
• Line 456 – Part XII.2 trust tax credit
• Line 457 – Employee and partner GST/HST rebate
• Line 476 – Tax paid by instalments
• Line 479 – Provincial or territorial credits
• Line 484 – Refund
• Line 485 – Balance owing

Complete the provincial or territorial tax and credit forms for the province or territory where you resided on December 31, 2013.

Hope this help!

 

Happy deducting!

 

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