We are pleased to announce that Athabasca Financial Ltd. is now offering Personal Income Tax Return Services.
Our strategy is to focus on the family unit when preparing returns. By doing this we can take advantage of all available credits, income splitting and transferable amounts between spouses.
Commonly missed amounts that can be transferred between spouses include: Age amount, Amount for Children under 18, Disability Amount, Pension Income Amount and Tuition, Education and Textbook Amounts.
Commonly missed credits include:
Children’s Arts Credit, Children’s Fitness Credit, Child Care Expense, Medical Expense, Caregiver Amount, Amount for Infirm Dependents, Amount for Eligible Dependent.
Income Splitting
Pensionable earnings received from either an Annuity or Registered Pension Plan can be split with your spouse. When income is split with your spouse it creates a Pension Income Amount for your spouse that reduces their net income. The reduction of net income deduces taxes owing and could increase your refund. Further, the reduction in net income could increase refundable credits such as the amount of GST you receive quarterly.
How to maximize Medical Expense Deductions:
Either spouse can claim medical expenses for both spouses and the families’ dependents. In most cases it is more beneficial for the lower income earner to claim the medical expenses. This is because the medical expenses claimed are reduced by 3% of the taxpayer’s income.
Children’s Art Amount:
Did you know that a Children’s Art amount was introduced in the 2011 Budget? There is a tax credit for up to 15% of $500 for the cost of enrolling your child (ren) under the age of 16 in a qualifying program that is artistic, cultural, and recreational or includes developmental activities. The program must be 8 consecutive weeks in length or in the case of day camps 5 consecutive days. Qualifying programs include: Music lessons, Art classes, Summer Camps, Winter Camps, Scouts, Girl Guides, Photography, Chess, Public Speaking, Language training. Activities that are part of the school curriculum are not eligible.
Children’s Fitness Amount:
Beginning in 2007 a Children’s Fitness amount was introduced. A credit for 15% up to $500 is available for children enrolled in a qualifying program that is intended to enhance the physical strength, balance and endurance of the participant. The program must be ongoing to qualify. Qualifying programs include Hockey, Soccer, Baseball, Swim lessons, Skating lessons, Karate, etc.
An additional credit of 15% of $500 is available if more than $100 is spent for the Children’s Fitness Amount or the Children’s Art Amount is your dependent is disabled and under the age of 18.
Tax Planning is a critical step in your financial plan. Tracy Valgardsson Enns, owner of Athabasca Financial Ltd. and CFP works to provide every client the best well rounded financial plan. By having personal tax services available in our office, we are able to take your financial planning to the next level.
Jennifer Charters is now available to complete your Income Tax Returns. For more information, inquiries or to schedule a meeting, please contact our office at 306-694-1434. We look forward to helping you meet your financial needs.
