Taxes
Family Caregiver Tax Credit: Tax Tips for the Sandwich Generation
Filed under: Family Finances, Taxes
As the population ages and Generation Y struggles to achieve a lucrative work-life balance, it is the so-called "sandwich generation" that is left to pick up both the emotional and financial tab.According to the Pew Research Centre, nearly half (47%) of all adults in their 40s and 50s have a parent over the age of 64 and are simultaneously raising either a young child or adult child while caring for their aging parents.
Additionally, Statistics Canada's findings strengthen the case for creating a resolution to the growing financial burdens of the sandwich generation. Recently, they tabulated that 2.7 million Canadians provided unpaid care to people aged 65 and over. And, among these individuals, many of them had some sort of long-term illness.
If this scenario seems all too familiar you may feel comforted by the fact that the government feels your pain. This year the Canada Revenue Agency has introduced a new tax credit -- the family caregiver tax credit -- to help ease the financial burden.
Here's what you need to know so that you can maximize your tax savings this year.
The 10 Biggest Things Your Income Taxes Pay For
Filed under: Budgeting & Planning, Taxes
With tax season almost over, you might be wondering where all your hard-earned dollars are going. The latest reported figures show that during the fiscal year 2011-12, the federal government had expenses totaling $271.4 billion.
Payments that go directly to persons, to provincial and territorial governments, and to other organizations are called "transfers." Transfers are the largest category of government spending. They made up about 59 cents of each tax dollar spent ($159.7 billion).
After transfers, the bulk of federal tax dollars went to cover the operating costs of the more than 130 government departments, agencies, Crown corporations and other federal bodies that provide programs and services for Canadians.
Government operating expenses such as salaries and benefits, facilities and equipment, and supplies and travel made up 30 cents of each tax dollar spent ($80.7 billion). Close to half of this spending-just under 15 cents of each tax dollar-went to just three organizations: National Defence, Public Safety Canada and the Canada Revenue Agency.
Finally, the last 11 cents of each tax dollar is spent on interest payments on the national debt.
Currently, 75% of this debt is owed to Canadians, including citizens and domestic institutions holding federal bonds, Treasury bills and other forms of the debt.
Here are the 10 areas where the greatest percentage of income tax revenues gets spent:
Procrastination Nation: Which Canadian Cities Are Slowest to File Taxes?
Filed under: Taxes
With the tax deadline looming and procrastination at an all-time high, a tsunami of tax filers is on the way. Waiting until the last minute means potential delays in getting your refund, not having the resources needed to complete your return, and stress that you just don't need.Canada's largest cities are the worst offenders when it comes to filing late. Once again, Toronto tops the list of Canada's biggest procrastinators – the number of residents who filed on the last day in 2012, according the TurboTax data.
Tax Quotes: 17 Of The Funniest, Smartest, Wildest Statements About Taxes
Filed under: Celebs & Money, Weird & Wonderful, Taxes
We love to hate them, but taxes, (introduced as a temporary measure after the First World War), are here to stay. Though Canadians are learning more and more about who's not paying them, most of us have no choice but to pay - as little as possible.With that in mind, we're looking at the lighter side of taxes, with some of our favourite quotes from the powerful and the intelligent. Enjoy (and then pay up like the rest of us)!
Income Tax Explained: Know What You Owe, and Pay Less
Filed under: Family Finances, Taxes
Having someone else do your taxes for you, or getting that help from a prepared software package, can remove the opportunity to better understand how your income is taxed. I will readily admit that, were it not for my job, I would almost certainly fall into this group. (Basic math is not my forte, to put it mildly.)
That said, it's worth putting the effort in to understand where your income comes from, and how each different source of income is taxed - not all income is generated in the same way, and it's not all taxed at the same rate either. Understanding even the basic differences between tax deductible and tax deferred, or the difference between investment income, and your employment income, could help you save a great deal of money over time.
Obamas Pay 18.4% Federal Income Tax, Donate Big to Charities
Filed under: Celebs & Money, Family Finances, Taxes
By Eamon Murphy
DailyFinance
The White House has released 2012 tax information for the President and Vice President.
The President and First Lady filed a joint return reporting adjusted gross income of $608,611. They paid $112,214 in taxes for an effective federal income tax rate of 18.4 percent and donated $150,034 to charity (about 24.6 percent of their earnings).
The White House press release took the opportunity to tout the so-called Buffett Rule, which it says "would ask the wealthiest Americas to pay their fair share while protecting families making under $250,000 from seeing their taxes go up." The President noted that he would pay more in taxes under his own proposals. The Obamas also paid $29,450 in Illinois state income tax.
The Bidens also filed a joint federal tax return, as well as a combined Delaware income tax return. In addition, Dr. Biden filed a separate non-resident Virginia tax return. The Vice President and his wife reported adjusted gross income of $385,072 and paid $87,851 in federal tax. They also paid $13,531 and $3,593 in state income tax to Delaware and Virginia, respectively, and gave $7,190 to charity.
To view the Obamas' and Bidens' tax returns in full, visit the White House website.
Tax Tips for Post Secondary Students
Filed under: Taxes
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Get on the bus: For students who depend on transit to get to campus, keep your passes to claim the Transit Tax Credit. The program also includes some electronic tickets and weekly passes purchased for four consecutive weeks. You need the receipts and transit passes to back up your claim. - Get the GST credit: Students turning 19 before April 1, 2014 should file a 2012 tax return even if they had no income. This will allow them to collect the GST/HST credit for the first payment period following their birthday.
How to Catch Up on Past Tax Returns
Filed under: Taxes
Each year approximately one million Canadians file their tax returns late. If you are one of those taxpayers, filing past due returns may be easier than you think.The good news is, if you don't owe taxes you don't pay penalties. But if you are expecting a refund, you are providing the government an interest-free loan until you file your tax return. If you owe taxes, you will be assessed a five per cent late filing penalty plus one per cent a month interest on the balance owing. The numbers may seem small, but they can add up.
The Taxman Cometh, So Plan Ahead
Filed under: Taxes
To paraphrase Ben Franklin, in this world nothing is certain, except death and taxes. With April 30 approaching, the certainty of filing a tax return is almost here."Taxes and procrastination seem often to go together, but your return will be much easier if you think about it before the deadline," says Cleo Hamel, a senior tax analyst at H&R Block. "Scrambling to find receipts or understand complex tax forms at the last minute will probably lead to missed credits or deductions. Everyone wants to make sure they get the biggest refund they are entitled to."
Hamel offers the following tips for preparing your own return with ease and peace of mind:
Tax Tips for Families with Children
Filed under: Taxes
- Claim the kids: Families will continue to benefit from a $2,191 Child Tax Credit for each child under the age of 18. This will result in a federal tax saving of $328 per child. And if one parent cannot use the entire amount to lower their tax payable, the unused amount can be transferred to a spouse or common-law partner.
- Credit for being active: The Children's Fitness Amount is a non-refundable credit is worth up to $500 for children under the age of 16 enrolled in an eligible program of physical activity. Not every program meets the eligibility guidelines so you need to ensure you know the requirements. Make sure you keep your receipts. Disabled children will also qualify for the credit if they are under 18. Manitoba, Yukon, Ontario, Nova Scotia and Saskatchewan also have a provincial fitness credit.
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