Income Tax
It is important to file an income tax return each year, so that you receive all of the
government benefits you are entitled to. Filing your income tax return can give you
access to programs that may put money in your pocket. An income tax return should
be filed every year even if you have little or no income.
There are some great ways that you can save on your taxes by knowing a few of the
deductions and credits that are available.
A tax deduction is a cost that reduces your taxable income. For example, if your
income is $50,000 and you have a tax deduction for $10,000, then your taxable
Income is now $40,000.
A tax credit is different in that it is a specific amount of money that is deducted from
the amount of tax you owe – not from the amount of income you earn .
Some possible tax credits/deductions are:
GST sales tax credit
Working Income tax credit (WITB)
B.C. Early Childhood tax benefit
Low Income Climate Action tax credit
Disability tax credit
Medical Expense Tax Credit
Training Tax Credit
Moving Expenses
Employment Expenses
Care-giver amount
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Some Reasons to File Your Income Tax:
Here are some examples of benefits you may be eligible for if you file an income tax
return:
GST credit payments.
Canada Pension Plan Disability Benefits.
Disability Benefits (veterans).
Employment Insurance Compassionate Care Benefits.
Provincial Medical Premium Assistance Program.
Subsidized Housing.
Bus Pass Program.
Travel Assistance Program.
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