Tax season can be filled with stress and anxiety for some, but it is easier when you know about some of the benefits that are out there. Knowing about all the incentives and deductions that you are eligible for can make it simpler. They can add up and put money in your pocket.
Owning a home is something that most Canadians aspire to, and once the home is ours, improvements and renovations make the experience all the better. If the costs seem to be overwhelming, tax credits help. While tax deductions are different for homeowners under different circumstances, here are some federal and provincial tax credits that you should know about.
New Home Buyers
The First Time Homebuyers Tax Credit is one that every first-time buyer will qualify for. All you need to do is file your income tax return to claim up to 15% on $10,000. This is $1,500 that can be claimed.
New rebates are coming for homeowners doing renovations, especially those making repairs to make the home safer, or more accessible for seniors. The Canadian government says the Multigenerational Home Renovation Tax Credit is available for homeowners who want to claim credits to create a secondary unit in their home where a senior or relative with a disability can live. This one allows credits of up to $50,000 for expenses for each renovation completed.
Tax credits are also available to those who renovate to make their homes more environmentally friendly, such as improving insulation, windows, doors, and heat pumps. Look for information on the Canada Greener Homes Initiative to find out about loans and learn about updates to this program.
Working from Home
Other expenses that can be claimed are for those who work from home, as there can be expenses involved in doing so. Those expenses could be for heating, water, and electricity costs, as well as insurance, maintenance, internet, and improved security.
All tax credits and breaks are different for everyone. They depend on how you qualify and your personal situation. Even though the information is out there, it can be difficult to navigate on your own. For the best answers, help and advice to find everything available to you, see an accountant or tax professional. It makes a world of difference, not just in this tax year, but to the decisions you make in the future.
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