Canadian Parenting and Child Care Community

Parenting => Finances => Topic started by: CareDC on April 20, 2009, 03:51:57 PM

Title: Most taxpayers leaving money on the table
Post by: CareDC on April 20, 2009, 03:51:57 PM
The tax season is once again upon us. Here is a very good article that points out many ways to take advantage of new and existing tax laws.


Nearly three out of four Canadians are leaving money on the table when they fill out their annual income tax returns, according to H&R Block Canada.


Cleo Hamel, a senior tax analyst with the country’s leading tax preparation firm in Calgary, said most Canadians can claim at least one tax credit, but only one out of four actually did on their 2007 tax forms.


“According to a survey we had conducted (in December), three-quarters of the population either didn’t take advantage or weren’t aware they could take advantage (of new tax credits on the 2007 tax return),” Hamel said in a recent interview.


“How can you leave that kind of money on the table?” Hamel said, adding the survey results were “quite shocking.’’


After all, Hamel said the Canada Revenue Agency (CRA) isn’t exactly hiding the information on tax credits from taxpayers. “The CRA has put a lot of effort into advertising these credits — television ads, ads in the paper — it’s amazing.”


For whatever reason, Prairie residents were more likely to claim the new tax credits (42 per cent), versus Quebec residents, who were least likely to claim them (18 per cent).


The most popular tax credit was the child tax credit, which was claimed by 18 per cent of survey respondents, followed by the pension income splitting tax credit (16 per cent) and transit pass credit (15 per cent).


The children’s fitness credit (14 per cent) and the working income tax credit (11 per cent) were also mentioned by respondents.


New this year are the first-time home buyers credit of $750, the $5,000 increase in allowable withdrawal from RRSPs to $25,000 for home purchases, and the home renovation tax credit of $1,350.


http://www.vancouversun.com/Life/Most+taxpayers+leaving+money+table/1512787/story.html