By Sheryl Smolkin
If you haven’t started to think about filing your 2013 income tax return, this week is as good a time as any. You’ve made your 2013 Saskatchewan Pension Plan and RRSP contributions and T4s are in the mail.
Last April, on Million Dollar Journey, the Frugal Trader wrote a great blog to help readers prepare for filing their 2012 income taxes. It is equally relevant this year – a great checklist to get all your paperwork in order before you sit down to complete your return.
If this is the first year your home was your principal place of business, you’ll want to read what Canadian Finance Blog’s Tom Drake has to say about how you can reduce your taxes with business-use-of-home expenses.
On a similar note, in Canadian Living, blogger Krystal Yee offers income tax tips for freelancers so those of you in that category you can get all of the deductions that you qualify for. She also warns the self-employed to put money away for taxes on a regular basis so there are no surprises at the end of the year.
Media-savvy accountant and author Evelyn Jacks writes about claiming employment expenses. Even employees may claim certain specific expenses, depending on whether their employer will verify that this was a necessary condition of employment. Allowable expenses may include travel costs, the cost of using an automobile to earn income, supplies used up in the course of employment, the cost of an assistant, and home office costs.
Retire Happy blogger Jim Yih reminds us to take advantage of the Pension Income Tax Credit. He says if you are age 65 and do not receive a pension (other than a government benefit) you should open a Registered Retirement Income Fund and transfer $12,000 from your RRSP. If you draw down $2,000/year until age 71 you will be entitled to the pension tax credit and effectively receive the money tax-free. An unused pension tax credit can also be transferred to your spouse.
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