Joined: Jul 2010
Posts: 1034
Low Income Earners: Advice for Bigger Tax Refund
3/10/2018 at 3:00 PM
Just a share in case those that qualify don't know. This earned me a big refund:
This may be too late, but if you make less than 21K a year, make sure to fill out Schedule 6, or ask your tax preparer about it. The Working Income Tax Benefit (WITB) can get you hundred$ if not more back.
Sometimes you have to let your accounting folks know, so they get you the best refund.
If you are single parent and have dependent under 19 living with you, you can a child as "Equivalent to spouse" which meant an extra $1200 more for me because I support them mostly. Again, this works best for low income families.
Revenue Canada wants people who do odd jobs to be a bit more honest, and the reward is great.
I think on line line 104 or 130 of your return, (try both and which ever calculation nets you a bigger benefit under WITB, then claim it on that respective line). Just note ODD JOBS, or write EXTRA WORK and no more details, then enter amount made. (Keep receipts, locations, and bank statements unless they call you on it)
Also if driving is a condition of employment, like you deliver pizza with your own car, or work as health care aide, or whatever. Keep track of gas receipts, insurance, repairs. You can write that all off if you NEED your vehicle for work. It may qualify you if it's used for 50% to 100% for working. I was in maintenance and drove between buildings alot and had to run errands.
If you have basic T1 return, download for FREE - Studio Tax and it will do your calculations and tutor you.
I am not a tax guy. Just a few basic pointers. If anyone wants to add to this, please do.