5. TFSA contributions are not deductible on your personal tax return.
6. The parent with the lowest income must claim any childcare expenses, unless the other parent is in jail or full time school.
7. OAS (Old Age Security) payments are not yours to keep. If your taxable income exceeds $71,592 you start paying back the OAS.
8. Pension splitting is not available for Canada Pension Plan payments.
9. Interest on RRSP loans is not deductible.
10. Adults are not eligible for the fitness tax credit.
We prepared hundreds of tax returns at Peverill & Associates this year. Here is what I noticed, in case you were wondering;
Taxpayers do not seem to know:
1. Medical premiums paid in the year are a part of the calculation of your medical expenses. The medical credit is available for the part of your total medical expenses that are over 3% of your net income.
2. Safety deposit rental charges are no longer a tax deduction.
3. The Canadian government allows a credit based on $1000 of sports expenses for children however the Nova Scotia government only allows expenses up to $500. Interesting that the federal government is bragging about supporting sport and for 2015 the NS government has cancelled the credit completely. These two governments must think they have different groups of voters!
4. The federal government has been advertising that there is income splitting available this year - but what they actually did is called a family tax cut. This credit is capped at $2000 of federal tax and is only available to families with children under 18. No income splitting unless you have minor children.