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.

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

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.

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.

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!

 

#inTAXicating

#tax

Author: Warren Orlans

Welcome to the blog for Intaxicating Tax Services, www.intaxicating.ca. My name is Warren Orlans and I am the owner of inTAXicating Tax Services. With over 17-years experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and the rest working in the private sector at large financial institutions responsible for resolving tax issues for corporations and individuals and the Canadian lead for a large US bank on FATCA implementation. My tax career began pretty much out of university at the CRA, in Collections, where I moved up, across, over and up again through their division with stops in Enforcement, Taxpayer Relief (then Fairness), Audit, Directors Liability, Training, Mentoring, GST, GST/HST, Payroll, Corporate Tax, Personal tax, and probably much more. If you have a collections, compliance or audit issue with the CRA, MRQ, IRS or with the CRTC, WSIB or any aspect of those agencies, inTAXicating is the place you need to contact. inTAXicating Tax Services has strategic partnerships which allows my team to include amazing tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. When dealing with governments, knowledge is power. We possess strong understanding of government so we know what the next step is before the government does. When you have a collections problem with the CRA, do you hire a graphic artist? No, you get a former collector who trained the staff, and who worked as a resource officer for 5 years. Then you know you are on the right track to resolving your tax problem(s). Others offer suggestions. We offer solutions! info@intaxicating.ca

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