By Kaija Hutteri
It’s that dreaded time of year: tax season. And this year it might be especially daunting.
An H&R Block study conducted last fall found that more than 50 per cent of Canadians polled were unaware of any tax changes.
Brenda Tobin, H&R Block district manager in Ottawa, says many people do not know what they can deduct on their tax return or what new credits exist.
She says there is often confusion about what receipts need to be brought in.
Cleo Hamel, tax analyst at H&R Block, says the company wants to inform people about their taxes.
“As a company, we have been putting a lot more time and effort into making sure that people are familiar with tax changes,” says Hamel.
“With only so many days left until the end of tax season, there are still people who come in and don’t know.”
A number of tax changes have come into effect giving families, senior citizens and students a break.
The Tax Credit for Public Transit Passes can benefit people of all ages.
It enables people to claim the amount they spend on monthly transit passes.
The Children’s Fitness Tax Credit is intended to make regular physical activity for children more affordable for parents.
Parents may now claim up to $500 per year for each child under the age of 16 enrolled in an eligible physical activity program.
Criteria for qualifying programs can be found on the Revenue Canada website.
Families caring for children under the age of 18 with severe mental or physical disabilities can apply for the Child Disability Benefit of up to $2,300 per year.
Children who are completely blind, who spend a significant amount of time in therapy essential to their survival, or who are unable to perform daily activities such as walking, speaking or feeding themselves can qualify.
A number of tax changes give students a break. The Textbook Tax Credit allows students to claim some of the money they spend on textbooks.
“Regardless of if they buy books or how much they spend, the credit is working out to $65 each month for all students in full time studies,” says Hamel.
As well, all scholarships are now tax exempt.
Last year, only the first $3,000 were exempted. Hamel says this exemption can save significant amounts of money for students with large scholarships.
“For a student with a $10,000 scholarship, that could save them $1,500 in tax,” says Hamel.
Senior citizens can benefit from new tax changes as well.
The Tax Fairness Plan has increased the Age Credit amount, saving some senior citizens about $150 a year.
The plan is designed to help lower and middle income senior citizens.
Many free tax clinics are set up across Ottawa to help people with their taxes.
Rachelle Mair works at Catholic Immigration Centre of Ottawa, which offers several free tax clinics that cater to immigrants and low income families in the community.
She says many people have shown interest in the clinics.
“Lots of people are signing up and we keep refusing more and more every day,” says Mair.
The Community Information Centre of Ottawa has posted a list of free tax clinics across Ottawa on their website.
For more information, visit www.cominfo-ottawa.org.