No matter what industry you work in, or what your job is, there are surely some tax breaks available to you.
Tax credits and deductions do a lot more than put more money in your pocket - they can help reshape the finances of your business entirely, by reducing your expenses. Strong accounting work can help a business to go from having a lackluster year to a banner one, simply via tax savings.
That certainly applies to skilled tradespersons. After all, as a tradesperson you require significant amounts of both training and professional equipment to do your job - two things that can often be deducted from your tax payments.
Apprenticeship Tax Credits
One way to save money on your taxes if you're a skilled tradesperson: invest your time into apprenticeship.
There are significant tax credits on both ends of this spectrum. If you register as an apprentice in a trade and complete your training - or if you help to train an apprentice yourself - there are major tax credits that will become available to you as a result.
"We are taking action to address skills shortages by providing even more support for apprentices," explained Jason Kenney, Minister of Employment and Social Development.
"Through our Economic Action Plan and support for training programs, along with grants and tax credits, we are encouraging apprenticeships and careers in the skilled trades, including the introduction of the Canada Apprentice Loan."
Trade Tools Deductions
Additionally, the CRA often allows skilled tradespersons to deduct up to $500 from the cost of tools they purchased for their work from their yearly tax payments.
Workers are eligible for this deduction if the aforementioned tools cost more than $1,000 - which is likely the case for most professional tradespersons. This is one way for individuals in the field to add a lot more money to their bottom line at the end of the year.
These are hardly the only costs that skilled tradespersons can save on by way of tax deductions.
There are numerous other expenses that you can get a deduction from - if you incur those expenditures in the proper manner, and if you're able to fill out the proper forms come tax time.
That's why people in all industries should consider employing help from an income tax preparation firm - if you invest in your taxes, then you'll be paid back with deductions and savings.