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Going To School

Education's purpose is to replace an empty mind with an open one.

In our business we get all sorts of strange documents handed to us so that we can help you make a deduction out of it-when it comes to the Education tax credits, this is what you need to know;
First; you are able to reduce your taxable income or that of your mom / dad or even your husband / wife. The deduction has to fit a number of guidelines which are really simple, but make sense in the overall scheme of taxes. The second thing is, the government realizes that if you are a student, chances are that you did not have a whole lot of income, and therefore, they will allow you to carry your deduction over to a year where you actually have some income to deduct against.

The education must be post-secondary. Recognized institutions are certified by the government for the most part and The institution will issue a form known as the T2202A.

So why don’t we want to see all of your receipts for books, pencils, pens and that whopping bill to buy your laptop? The T2202A tells us two things about you. It tells us how much of your tuition that we can claim and it tells us how many months that you were in school.

Why do we need to know how many months that you were in school?
The Education amount and The Textbook amount are your claim for all of those expenses relating to your education, but not tuition.

$400 per month for full-time study
$120 per month for part-time study.

$65 per month for full-time study
$20 per month for part-time study.
You can transfer up to $5,000 to your Mom & Dad or Husband/Wife and carry the balance forward. Or if you wish, you can carry the whole amount forward so it accumulates for the day that you finish school and begin working.

Tax Tips

Many Canadians are looking abroad when adopting a child but it can be an expensive process. However, there is now some tax relief for adopting parents. You may claim a non-refundable tax credit for expenses relating to the adoption of a child up to a maximum of $10,445. The credit can only be claimed in the year the adoption is finalized but may include eligible expenses from previous years.

Turning 65 doesnít mean you canít contribute into an RRSP. The rules do allow you to contribute to your own RRSP up until the end of the year in which you turn 71, or to your spouse or common-law partner's RRSP. But remember, you will need available contribution room.

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