Income tax tips for 2010 return

What can you declare and save some money on your 2010 income tax?

Here are some of the categories you should consider:

Universal Child Care Benefit (UCCB)

If you are a single parent you can include the UCCB income in the income of the dependent for whom an eligible dependent credit is claimed. It is likely that the dependent will not have to pay any tax for the UCCB income.

Be aware that the UCCB income would reduce the claim for the eligible dependent amount. This is a smart move for a single parent who is in the second tax bracket or higher. This is for the single parent with a taxable income of more than $40,970.

Computer for the self employed

Did you buy a computer for your business after January 27 2009 and before February 2011? If you did then you may be eligible to claim a 100% capital cost allowance (CCA) expense.

If you do not have another computer for personal use than you can claim the CCA expense only for the portion that is for business use.

Tools for tradesman

Did you spend over $1,051 for necessary tools? You can deduct up to $500 for the cost of eligible tools as an expense.

To claim this tools deduction you need your employer to complete form T2200 to certify that you had to buy your own tools as a condition of employment.

Home buyers credit

Did you buy a home in 2010 as your principal residence? If you did, then you could save $750!

To be eligible you cannot have owned a home from 2006 to 2009. The only exception is if your new home is for a disable relative dependent on you and that this new home is more usable for that disabled person.

Medical Travel

How far do you drive to see your doctor or dentist? If you live in an outlying area and you must travel more than 40 km then you can claim this travel cost as a medical expense.

Each province has rates and gives a credit of an amount per kilometer. You need to keep track of your trips and how far it is round trip - from home to the clinic or medical center and then back again.

If you trip is more than 80 kilometers each way you can also claim a flat $17 per meal expense plus the actual cost of lodging. You do not need to save receipts for the meal but do need to have receipts for the hotel or motel.

Keep a log book noting the date, the name of the medical practitioner you went to see and how many kilometers your traveled.

Saskatchewan has some special issues

Saskatchewan residents have a provincial employee's tools tax credit. You need to take the form T2200 to your employer to complete and you need to fill out the form T1284. You can get a one-time trade entry tax credit up to $1,375 and you get an annual maintenance tax credit of up to $225.

There are four different trade groups and depending on which one you fit, you will get a predetermined rate for the credit.

Saskatchewan Pension Plan (SPP) benefits are now eligible for the pension credit.

If your taxable income is under $40,970 and annual SPP benefits are under $1,000 then the SPP income could be come non-taxable.

If any of these items fit your situation then be sure to bring this to the attention of the person doing your taxes. You should only pay what is required for income taxes.

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