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Difference between revisions of "How Can I Save on My Taxes?"
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How Can I Save on My Taxes? (view source)
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If your income is low, you may also be able to get the BC Low Income Climate Action Tax Credit. This is a payment to help you with the carbon tax you pay. Lower-income families can get $105 per adult and $31.50 per child each year. On July 1, 2011, the credit will increase by 10%. | If your income is low, you may also be able to get the BC Low Income Climate Action Tax Credit. This is a payment to help you with the carbon tax you pay. Lower-income families can get $105 per adult and $31.50 per child each year. On July 1, 2011, the credit will increase by 10%. | ||
You are considered to be a “lower- income” if your income is $30,722 for a single person, or $35,843 for a family. (2010-2011 FIGURES | You are considered to be a “lower- income” if your income is $30,722 for a single person, or $35,843 for a family. (2010-2011 FIGURES) | ||
The BC Low Income Climate Action Tax Credit comes with the BC HST credit. | The BC Low Income Climate Action Tax Credit comes with the BC HST credit. | ||
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The amount you can contribute is shown on the Notice of Assessment you get from the government each year after you file your taxes. By the end of February of each year, your bank, credit union, or investment company will provide you with a receipt for your RRSP contributions in the previous year. You claim the amount as a deduction on your income tax return. | The amount you can contribute is shown on the Notice of Assessment you get from the government each year after you file your taxes. By the end of February of each year, your bank, credit union, or investment company will provide you with a receipt for your RRSP contributions in the previous year. You claim the amount as a deduction on your income tax return. | ||
You do not have to claim your whole RRSP contribution each year on your taxes. You can defer some or all of your contributions. This can be helpful if you do not have enough income in that year to make the best use of the tax deduction. | You do not have to claim your whole RRSP contribution each year on your taxes. You can defer some or all of your contributions. This can be helpful if you do not have enough income in that year to make the best use of the tax deduction. | ||
You do not have to put the full amount in each year. If you do not pay the full amount, you will have unused contribution room for the future. This means you will be able to put more money into your RRSP later on. | You do not have to put the full amount in each year. If you do not pay the full amount, you will have unused contribution room for the future. This means you will be able to put more money into your RRSP later on.If you are working part-time now, you may put less than your limit into your RRSP this year. Next year, if you work full time and have a higher income, you could put in more money. | ||
When the money pays for education, the money is taxed in the student’s name. Since many students have little or no other income, they can usually withdraw the money tax-free. | Registered Education Savings Plan (RESP) is a special savings account that helps you save for post-secondary education. You can open a RESP at a bank, credit union or investment company. The government does not tax this money while it is in your RESP. It can grow tax free. When the money pays for education, the money is taxed in the student’s name. Since many students have little or no other income, they can usually withdraw the money tax-free. | ||
The Tax Free Savings Account (TFSA) helps you save for your future. You can open a TFSA at a bank or credit union or investment company. You can contribute up to $5,000 annually to a Tax Free Savings Account. | The Tax Free Savings Account (TFSA) helps you save for your future. You can open a TFSA at a bank or credit union or investment company. You can contribute up to $5,000 annually to a Tax Free Savings Account. | ||
