The 2013 budgets released in the Spring of 2013 brought a few changes that will affect your taxes this year and perhaps put more money in your pocket.
If you or your spouse hasn’t claimed the charitable deduction tax credit in the past 5 years, you’re eligible for this one-time tax credit. The first-time donor’s super credit gives an extra 25% for cash donations when you claim your charitable donations tax credit.
That means you can get a 40% federal credit for up to $200 in donations and a 54% credit for the part of donations between $200 and $1,000. This is in addition to any provincial credit.
If you have a dependant who needs additional care due to an impairment that affects physical or mental functions the additional amount you may be able to claim has increased to $2,040 when calculating certain non-refundable tax credits.
As a self-employed individual you now have access to a new retirement savings plan, the pooled registered pension plan (PRPP). A PRPP is designed for employees and self-employed individuals who don’t have a workplace pension.
The annual contribution limit for your tax-free savings account (TFSA) increased to $5,500 in 2013. Including your 2014 contribution, you could have invested $31,000 tax-free since 2009.
If you think any of these new tax relief measures or services are applicable to you be sure to mention them to your tax specialist for discussion before filing your 2013 tax return.