Personal Tax Tips
Northern Residents Deduction
If you have a box 32 on your T4 you can claim travel on your Northern Residents deduction. You can claim two trips so ensure that you gather the following info for tax time:
Airplane ticket purchase receipt – need the cost of the flights.
Gas receipts if you traveled by vehicle
Hotel/motel accommodation receipts
All these receipts also prove that you were away on your trip and also add up to be your claim.
Some updates for this year are:
- No more Universal Child Care Benefit it is all Child Tax Benefit now which is non-taxable.
- If you sell your personal property (your home) you have to report that now on your personal income tax. No tax on this but it has to be reported.
- The child amount is still not a claimable tax credit as per last year.
- Good news is that the Northern Residents deduction went from $8.25 per day to $11.00 per day.
- The children’s fitness amount is at $500 and the children’s art amount is down to $250.
If you moved in 2016 for work or to start a business moving expenses can be a very good deduction. Moving expenses are generally audited about 90% of the time so make sure you have all the information.
- Gas receipts for the travel if you moved yourself. You can claim the kilometers but the gas receipts show your progress on the highway.
- Number of days for move – hotel receipts can be claimed and meals as well so keep those receipts.
- A letter from your current employer would be a good thing to get ahead of time as it will be asked for later. The letter needs to indicate the date of hire and if any of your moving expenses were reimbursed.
- Costs for the moving company to move your personal possessions.
- Legal fees, realtor fees and other fees to maintain old home if selling or to move to new home if buying.
- Ask about all the moving expenses that relate to your move so you can claim all that you can. You can also look at the form online through CRA website, the form is called T1M.
You can claim medical travel as well as medical receipts. If you had to travel for medical appointments then you can claim the kilometers for that trip and one meal per person as well. It’s only meals for 2 people if you need assistance or you are driving someone who needs assistance or cannot drive themselves. Depending on how far you have to go meals can be up to $51/day.
Medical appointments can be for:
Physiotherapy, Massage therapy, Optometrist. Specialist – doctor/surgeon, Mammograms/ultra sounds/x-rays, or any appointment for your health that you are not able to access unless you travel to a city or another town.
Person: Fred Bloggs, Date: June 1, 2016
Travel: Haines Junction to Whitehorse – physio appointment
Kilometers: 310; Kilometer rate: $0.59/km; Meal: $17
(Note: look for km rates pertaining to your province or territory online CRA)
Total claim: 310km X $0.59 = $182.90 + meal $17 = $199.90
If you received reimbursement for your travel you take that amount off the $199.90. For example: $199.90 – $94.00 (amount reimbursed) = $105.90 as a claim for medical travel on your taxes.