If you had a life change in 2012, you may notice a difference on your tax return when you file. As we continue to count down to the deadline, here are four life changes that can make a difference on your tax return:
- Having a baby in 2012 means you can access the child amount, but you will also need to report your Universal Child Care Benefit as income.
- Filing as married for the first time means you can pool medical expenses and charitable donations to maximize your tax savings. And if one partner has little income, the spousal amount could also be claimed.
- Buying your first house means you qualify for the First Time Homebuyers Credit. And if you borrowed money from your RRSP under the Home Buyers Plan then you have two years before you must begin paying it back.
- If you retired in 2012, congratulations. Since little or no tax is withheld from your retirement income, set aside some money in case you owe when you file your tax return.
Life changes can make it a year to remember, but ensure you are aware of the impact on your tax return. You do not want to miss out on filing all your credits.