|
|
Like this article? PLEASE +1 it! |  |
|
Dig hard for those valuable tax receipts and reap the rewards!
| Guest post by: Brenda Parker |
Article Overview: Collecting up all your tax receipts can save your a lot of money when filing your income tax return!
 |
Free Download - Accounting - Beyond the Tax Return By Brenda Parker |
Dig hard for those valuable tax receipts and reap the rewards!
I'm sure many of you are looking around your house right now for all those "little receipts" which you carefully tucked away in a "safe place" during the year. These "little receipts" can mean big tax savings at the end of the day. Little Sara's ballet lessons, Johnny's basketball lessons, the donation to the SPCA, oh yes, and the bill from the dentist
Given the fact that we are facing the reality of an aging and increasing medical costs, I'll base this discussion on how you can use medical expenses to reduce your taxes and at least get some of that hard earned money back in your pocket.
Start with the costs which you incur for prescription drugs. You may be paying all costs out of your pocket or a portion if you have an insurance plan. If you have a health plan which reimburses these costs 100%, you cannot claim them personally. Don't fret if you can't find all your receipts. Most pharmacies can provide you with a printout of your total drug costs for the year.
The list of qualifying medical expenses is lengthy. Some of the more common ones include fees paid for eye exams, prescription eyewear and laser surgery, hearing aids, medical equipment , incremental costs for gluten-free food products (your medical practitioner must certify that this diet is required due to celiac disease), insulin, renovating costs in your home for a person with severe and prolonged mobility impairment (restrictions apply), premiums paid to a private health insurance provider and in Nova Scotia, the Seniors' Phamacare program. The list goes on.
Some of the lesser known expenses that may be claimed arise when medical service is not available within 40 kilometres of where you live. You may be eligible to claim travel expenses incurred in order to get the treatment necessary. Where travel exceeds 80 kilometres, you may be able to claim meals and accommodations in addition to travel expenses. You may also claim expenses for someone to accompany you if a medical practitioner certifies in writing that you are unable to travel without assistance. CRA allows you to calculate this expense based on a detailed method (all receipts should be kept) or on a simplified method where flat rates are provided by CRA. Regardless of which method is used, you will need receipts to back up your accommodation costs.
Medical expenses may be claimed for any 12 month period ending in 2008 and not claimed in 2007. The expenses are not limited to those paid in Canada only. For a deceased person, this period is can be extended. You may claim expenses incurred for yourself, your spouse or common-law partner, and your/your spouse's children born in 1991 or later and who depend on you for support. There is a minimum threshold to reach before medical expenses start reducing your tax payable. This is equal to the lesser of $ 1,962 or 3% of your net income. This should be taken into account when deciding who should claim the credit. There is also a refundable tax credit for working individuals with low incomes and high medical expenses.
So, start searching for those receipts and get in the habit of keeping them in a safe place during the year - a place where you will remember to look when tax time is upon us again. Treat someone special with the money that you save, including yourself.
Clutter is Only Money in Your Pocket
What It Takes To Work From Home Online
The Law of Rhythm And Your Home-Based Business
Paper Overload? Steps to Transition to a Paperless Office for your Financial Records
Revenue
Early Bird, Night Owl
Audits: Always Be Prepared
Bookkeeping to Keep Track of Your Business
Eligibility Size Standards
Persistence - The Keys to Success when you have an Online Business
Always Do It the Right Way.
Business success strategies -- Lies That Trap Us
5 Questions Great Managers Ask (and They Aren't Hard!)
Tax Deductions For Home Business Owners
How To Keep The IRS Happy When Setting Up A Business
Getting New Business Ideas Off To A flying Start
New Study of Corporate Rewards Program Proves...
Basic Bookkeeping for Small Business
Law 5: How to Create Value
What Are The Different Categories Of Employee Rewards And Recognition Programs?
|
About the Author: Brenda Parker RSS for Brenda's articles - Visit Brenda's website
Brenda Parker operates Scotia Accounting and Tax Services located in Stellarton, NS, Canada. After graduating summa cum laude from St. Mary's University in Halifax with a B Comm in Finance and a BA in Economics, she worked for a national grocery firm in various departments with her last role being assistant manager of Taxation. During this time she attained her Certified General Accountant's designation. Since getting her CGA, she has worked in various management/accounting positions for government ,public accounting firms, and as controller of a regional hotel chain and a new car dealership. She is a Simply Accounting Certified Consultant and Quickbooks partner. In her accounting practice she has served both large and small clients in a wide variety of sectors. From personal taxes to businesses in manufacturing, wholesale, retail and services to charities and not-for-profit organizations. She has clients from Cape Breton Island, NS to Montreal, Quebec to Calgary, Alberta and in many locations in mainland NS. All information in her articles is offered without prejudice and she advises readers to consult a professional accountant in person in regards to their personal situations. Click here to visit Brenda's website   So who must file an income tax return for a given year Back to School tax tips 1 Are you an Employee or a Self Employed Individual Is Your Business Storm Proof Part 1 Tax Time 2009 Q A |
Related Forum Posts
Re: When to give away your product or service for free
- When giving away products it is pretty much win some lose some. On the internet one has to consider that a lot of product that you may give away will not reap any rewards, but others will certainly sign up for more if you have what they are looking for.
Like David I have sometimes signed up for free PLR etc knowing that I was going to be hit for an upgrade, and depending on the free stuff I got I would then consider if it was worth it or not.
One just needs when giving free stuff away, to work out how much you actually can afford to do of this before it finishes up as a loss for you.
MichelleJ
Using factoring companies
- I haven't used it myself but can see how it would be valuable for some entrepreneurs. It's hard when you get an order but don't get paid until 30, 60, or 90 days later. But it's also hard to give up $ to the factoring companies!
Re: Alexa Ranking Goals
- Thanks for the update Evan and for the words of encouragement; I really appreciate it as I have been going backwards for a while now.
GT, I know how hard you work and I am sure that you will see your rewards next time around. Your worst AR figures are still way better than my best so you are still an inspiration when it comes to work rate,
best regards,
Mal.
Re: What works for you?
- If you love your work, then there is no pressure. So, pressure builds up when you work for someone else.
Actually, Pleasure and Pain are both side of one coin. You need to have both in order to succeed in life.
Take risks and rewards are higher. Take less risks, the rewards are less. So, understand your capacity and take charge.
Thanks,
Robert
Re: 7 Things in Your Home that Are More Valuable Than You Think
- Thank you for sharing this article with us.
My weak spot are books and I know I have few good ones that are more valuable than I think, but it will be hard to sell them.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
10 mistakes of media relations
Making Money Blogging Can Be Tons Of Fun 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Ask All to Buy!
3 Pointers to Recruiting and Retaining Good Staff
Multilevel Marketing: 4 Tips To MLM Success
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.