Receipts for Tax Season
There are many expenses which could be claimed to reduce taxes owed, however if you don’t keep your receipts the expenses may be disallowed if you are audited. So check out this checklist for receipts to keep. Your accountant will thank you at tax time.
When you give a donation, get a receipt. You can deduct donations made during the year or even prior years from your tax payable, reducing your tax bill quite nicely in the process. The receipts should contain the charity’s registration number, address, the date, the amount and an authorized signature. As the first $200 are given a 15% tax credit, while everything above is given a 29% credit, it is usually recommended for spouses to pool them together to get the highest credit possible.
Any time you went to any sort of medical checkup, keep your receipt. Taxes can be reduced substantially. An added bonus is that if you forgot to use last year’s expenses, you can claim for any 12 month period so you don’t have to lose out on them.
Keep all receipts! You can claim many expenses on business income, but if you are reassessed by the CRA and cannot produce the receipts, your expenses will be disallowed. Keep those receipts.
If you have a child in post secondary education, make sure they get the T2202A form from their school. Transfer up to $5000 in tax credits if they don’t need it and any excess can be carried forward if they earn income next year.
If you have to move to be 40km closer to work, you can claim moving expenses and need to keep those receipts. You could use the simplified method involving a flat rate, in which case you wouldn’t need the receipts.
If you contributed to your RRSP during the year or within 60 days of the new year, hold onto the form you receive in the mail from your broker. As I discussed in another article, this could be a valuable deduction to reduce taxes.
As always, this is just an overview of some common expenses. The list is not exhaustive and a professional should be consulted. However it’s definitely a good start for the uninitiated.
Happy receipt collecting!