Canadian tax credits for 2010 – are you making use of them?

2010 PERSONAL TAX CREDITS

Calculates the dollars you can earn before attracting the first dollar of tax

Unused personal credits may be transferred to your spouse (on Schedule 2)

OTHER CREDITS THAT REDUCE TAXES

Disability Tax Credit

Have your doctor sign Canada Revenue Agency form T2201 for up to $7,239 non-refundable personal tax credit.  If you care for a person that qualifies you may be able to use their tax credit and medical expenses on your tax return.

Medical expenses

Usually family medical expenses should be combined and claimed by the spouse with the lower Net Income.  (Schedule 1 line 330)

Consider claiming unused medical expenses for other dependents (ie you support a child at college or a parent in a nursing home) (Sched 1 line 331)

Donations to Registered Charities

  • First $200.00 donations will save approximately 20.06% tax
  • Over $200.00 could save approximately 43.7% tax

New after 2006 – avoid tax on capital gains by donating investments

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