10 Things to know when preparing your tax return

By Tim Cestnick

I came across this article which gives useful advice and tips to help you prepare your return:

http://www.theglobeandmail.com/globe-investor/personal-finance/tax-matters/10-things-to-know-when-preparing-your-tax-return/article2393523/

The one difference of opinion I have with the author is the comment expressed in Tip No 5 recommending the transfer of unused tuition and education credits to a parent. While this is certainly an option (it can be spouse, parent or grandparent), since the 1997 tax year, unused credits of this nature can be carried forward to future years.

Two points worthy of note;

The carry forward tuition fee cannot be transferred to any other person in future years

A student cannot hold on to these amounts for future years without reporting them in the same year for which the student received Form T2202.

Depending on the circumstances, why might a carry-forward be a good option?

The excess tuition and education credits can be offset at a future time when the student completes their studies and enters the job market. Depending on the size of the credits carried forward, they may be eligible for a significant refund in their first year of full-time employment.

About Jenny Okonkwo

A MESSAGE TO VICE PRESIDENTS IN FINANCE You know how you are continuously frustrated with trying to balance external compliance requirements with supporting the business internally? I solve this. I do this by using my natural talent for detecting and eliminating waste, duplication, inefficiencies. Documenting procedures, streamlining business processes to help define and clarify roles and responsibilities. Automating manual outdated systems, designing and implementing new ways of working, analysing business data to improve decision making. I help companies develop and improve the internal controls over their financial reporting by assisting in the delivery of Sarbanes Oxley (SOX 404) readiness programs. This allows focus to be placed on compliance and knowing that internal business is taken care of, helping to minimize financial risk to maximize commercial opportunity. Even though I am an accountant by trade, I’ll always be a problem solver at heart, which is shown here. I’m always looking for a new problem to solve, so if you’ve got a doozy you need a hand with, feel free to contact me directly at 647 838 9606 or drop me a line at jenny@transform-consulting.ca I have also helped local business entrepreneurs and sole proprietors prepare their voluntary disclosure applications, computerize their manual accounting systems, remove their record-keeping backlogs, automate their processes using both cloud based and desktop accounting solutions, prepare their personal and corporate tax returns. Join my LinkedIn Group now to brainstorm and collaborate from any of these perspectives. Connect with me on Twitter and Linkedin.
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