Q – I’m in the process of filing my 2011 tax return. Are there any tax breaks to help offset the cost of raising a family and going to work? – Ray S., Scarborough, Ontario
A – In fact, there are a few deductions available. Here are the most popular ones: Childcare expenses are deductible from income where one or both parents are working or where one spouse is attending school for all or part of the tax year. Childcare expenses can include daycare fees, boarding school, hockey school, or summer camp fees. The maximum you’re allowed to claim under the childcare deduction is $7,000 for each child under seven at the end of the year, and $4,000 for each child over seven and under 16. The deductions cannot exceed two thirds of your earned income.
Students can claim tuition, education, and textbook amounts. If they have graduated recently, they may be eligible to claim the interest that they paid on their student loans.
The Public Transit Credit lets you can claim a tax credit for the cost of monthly public transit passes for 2011 for commuting on buses, streetcars, subways, commuter trains, and local ferries. It is available to everyone. Keep your monthly passes and receipts as documentation. – R.T.
Robyn Thompson, CFP, is the founder of Castlemark Wealth Management, a boutique financial advisory firm, specializing in customized financial, investment, insurance, and retirement planning. Phone 416-828-7159 or email today to firstname.lastname@example.org for a no-obligation, no-charge Castlemark Integrity Financial Planning consultation.
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© 2012 by the Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please contact the author to discuss your particular circumstances.