In 2021, over 5 million Canadians ended up with a blank slate after filing their taxes. Everyone else either owed or was owed money.
Tax season can be a stressful time. There are so many factors to consider!
How do you ensure you're not missing valuable tax deductions on your tax returns?
We can help. Read on for the top tips from tax accountants in Calgary.
Remember Home Office Deductions
With the rise of remote work, the home office deduction has gained prominence during tax season. Calgary tax experts suggest that individuals working from home should explore this deduction carefully.
To claim a home office deduction in Alberta, your workspace must be used exclusively and regularly for business purposes. This means that it's used primarily for your work and isn't used for personal activities.
There are two methods for calculating home office deductions: the simplified method and the detailed method. The simplified method involves multiplying the area of your workspace by a prescribed rate.
The detailed method requires you to track specific home office expenses and then calculate the portion that can be deducted based on the percentage of your home used for business.
Regardless of the method you choose, maintaining detailed records is essential. Keep track of expenses like rent, mortgage interest, utilities, property taxes, and home maintenance costs.
Also, document the dimensions of your home. Note the specific area used for business.
Look At Alberta-Specific Deductions
Being in Alberta, you have access to specific deductions when you're paying taxes.
Look at things like the Alberta Family Employment Tax Credit, designed to support families with lower incomes.
Similarly, the Alberta Child Benefit aims to help families cover the costs of raising children. Optimizing your eligibility for these programs can result in substantial tax savings.
If you are a volunteer firefighter in Alberta, you can claim a tax credit for your service. This credit recognizes the important role volunteer firefighters play in communities and offers a deduction for eligible expenses related to their service.
Seniors in Alberta may be eligible for a property tax reduction. This provides financial relief to seniors on fixed incomes who own property. The amount of the reduction depends on factors like age, income, and property value.
Calgary residents planning for retirement should take full advantage of Registered Retirement Savings Plans. Contributing to an RRSP not only helps secure your financial future but also provides immediate tax benefits.
Your RRSP contributions are deductible from your taxable income, reducing the amount of income subject to tax. This strategy can be particularly effective for those in higher tax brackets.
Talk To The Professionals
You don't have to do your taxes alone. Working with professionals will ensure you don't miss anything when you're filing taxes.
Tax professionals in Alberta are well-versed in the nuances of the province's tax laws. They understand the specific deductions, credits, and incentives available to Albertans.
Hire Tax Accountants in Calgary Today
With these tips from tax accountants in Calgary, you'll be maximizing your tax deductions in no time. Gather up your paperwork, and figure out what applies to you.
Are you ready to get started? Contact Masone and Company today for the professional help you need.