You may be interested to know who took advantage of tax credits in 2009.  Canadian Business Online posted the following article in April.

Survey of Popular Tax Credits Finds fit Kids out West; Brainiacs in Toronto MISSISSAUGA, ON (CNW) – Edmonton residents are building better homes. They’re helping their kids build better bodies, too. Meanwhile, scholarly folks in Toronto lead the nation in building stronger brains.

Those are just a few of the findings of a new, multi-city study for Intuit, maker of QuickTax, the nation’s best-selling tax preparation software.

The study, by Ipsos Reid, gauged Canadians’ intentions to claim various tax credits in their 2009 tax filing. Among other things, it found that more residents in Alberta’s capital have or plan to take advantage of the Home Renovation Tax Credit than any other Canadian city.

While many urban Canadians have improved their homes and used the renovation credit to reduce their taxes, Edmonton residents are at the top of the handyman heap. According to the study, almost one in three (32 per cent) Edmontonians say they have or will claim the Home Renovation Tax Credit for the 2009 tax year. With the highest rate the country, Edmontonians may be the owners of Canada’s hottest properties.

“Canadians are getting some tax payback for investing in their homes over the last year,” said Rick Jensen, general manager of tax products at Intuit Canada. “And people who do their own taxes with QuickTax don’t get penalized for claiming what belongs to them. Unlike at some tax preparation stores, there are no additional fees for qualified taxpayers to claim a Home Renovation Tax Credit when filing online with QuickTax.” The Home Renovation Tax Credit can be claimed with any paid version of QuickTax.

Other top fixer-uppers live in Ottawa, where 30 per cent plan to claim the credit, Halifax (30 per cent), Winnipeg (29 per cent) and Saskatoon (29 per cent). Less likely to doll up their dwellings are those in the Greater Toronto area (27 per cent), Calgary (24 per cent), Vancouver (21 per cent), Quebec City (16 per cent) and Montreal (14 per cent).

Fit Kids in Alberta; Brainiacs in the GTA The survey revealed that Edmontonians also invest in physical fitness, while those in the GTA favour brainpower.

Children’s Fitness Tax Credit: If Edmontonians are busy with the hammer and paint brush, their kids are equally active on the rink and field. The study indicates that the city may be home to some of the most active kids in the country, with 12 per cent intending to claim tax credits available for children’s physical fitness, the highest percentage in the country, according to this study. Their Alberta neighbours in Calgary weren’t far behind at 10 per cent. Fewer kids in other Canadian cities are as active with their fitness tax credits: Saskatoon (7 per cent), Vancouver (6 per cent), Ottawa (6 per cent), Halifax (6 per cent), Quebec City (5 per cent), GTA (5 per cent), Winnipeg (5 per cent) and Montreal (3 per cent).

Tuition Credit: From active bodies to active minds, students and parents across the country are using the tuition tax credit for post- secondary education. The most scholarly cities, based on the number of respondents intending to file the tax credit, are: Greater Toronto Area (16 per cent), Saskatoon (15 per cent), Calgary (13 per cent), Quebec City (13 per cent), Vancouver (12 per cent), Edmonton (12 per cent), Montreal (12 per cent), Halifax (11 per cent), Ottawa (11 per cent), and Winnipeg (9 per cent).

“Finding tax credits you deserve is easy,” said Jensen. The EasyStep interview in QuickTax provides built-in guidance to help people find every deduction relevant to them, even if they’ve had life changes. QuickTax also includes an A-Z list of more than 400 federal and provincial deductions.

People who use QuickTax may ask themselves how we decide to make changes to the product year over year.  You may be surprised to hear it’s from feedback from people like you.

Every year, we visit homes of people using QuickTax and actually watch them prepare their tax return.  Yes, we sit through the entire process of entering the information, going through the final review process and submitting their returns.  We’ve found that by doing this we see things that people might not remember when they complete a survey at the end.  If people spend longer on a screen than they should be, we make note of it and ask them specifics about why they re-read the paragraph or why they clicked the Help button.  When we decide what to include in the following years product we review this data to ensure we understand the problem areas.

What this means to you:  if a survey appears in product or we give you a call, give us your honest opinion.  We want to know what you hate and don’t forget to tell us what you like – so we don’t change it.

While the deadline for RRSP contributions in 2010 is many months away, it’s smart to start thinking about it now. What’s even smarter? Using your tax return – whole or in part – to start funding this year’s contribution right away.

For many people, the end of the fiscal year brings a scramble to maximize RRSP contributions. By starting the year with a large transfer, you reduce the chances that you will be part of that crowd. Getting in the habit of regular contributions is also a great idea.

Tax returns are often seen as a source of bonus money, an amount not taken into account in the family budget. While it might be more exciting to treat yourself with this money, you can choose to simply add it to your RRSP. If you weren’t planning on spending it, it will not be missed.

Don’t forget that contributions to an RRSP are tax-free. Saving for your future is therefore a twofold economy: you are putting money away and getting a tax break. This is a great habit to get into!

If you run a small business and are considered self-employed, you might be wondering about how to file your income tax return. Entrepreneurs might appreciate QuickTax for Unincorporated Business – a product specifically made to help the self-employed with tax returns.

The tax tool offers guidance in a step-by-step process, allowing you to enter your income and expenses with all of the information you’ll need. Even when it comes to some of the mundane aspects of taxes, like industry codes, QuickTax will walk you through it. It can find the right code for you by asking you specific questions about your business.

QuickTax for Unincorporated Business offers a number of helpful features – like the Business Expense tracker. This valuable tool lets you keep track of business costs throughout the year. Then at tax time all you have to do is import this information into QuickTax – you won’t even have to spend time entering it into the file.

Maybe you’re a self-employed individual who is thinking of incorporating your business to receive different tax benefits. QuickTax even has a tool that can help you see if it’s in your best interest.

Instead of stressing about how to account for your income this tax season, entrepreneurs can try QuickTax for Unincorporated Business to get every penny they deserve from their self-motivated business endeavors.

Self-employed taxpayers have until June 15 to file their income tax return.

If you missed yesterday’s tax filing deadline; don’t worry you can still use CRA’s NETFILE service until September 30^th.  If you’re a Québec resident, Revenu Québec also keeps the NetFile Québec service open until September 30^th.   If you are receiving a refund and still haven’t filed, you won’t be penalized for it.  If you owe money to the CRA, file as soon as you can because you’ll be paying a penalty and interest until you pay the money you owe.  The late-filing penalty for the CRA is 5% of your balance due plus 2% for each full month that your return is late.

Self-employed individuals and their spouse or common-law partner still have until June 15 to file their tax return; however if they owe the CRA they need to pay up because interest starts accumulating on the balance on May 1^st.   CRA charges compound daily interest starting May 1^st , 2010 on any unpaid amounts owing for 2009.

It’s that time of year again – tax return time. For those Canadian taxpayers who have put off income taxes, the Globe and Mail reports there are certain risks for missing opportunities or incurring penalty fines that can come with procrastination. Instead of panicking, taxpayers might benefit from tips on common mistakes to avoid when feeling pressure to pay taxes.

To start, the source reminds Canadians to carefully consider which receipts to hunt for as they file taxes. Home renovation receipts found after tax returns are filed offer no value on next year’s returns. On the other hand, charitable donation receipts can be combined for up to five years. If you only have so much time to look for slips, prioritize your hunt accordingly.

The Globe and Mail says taxpayers often make last-minute mistakes when it comes to income splitting. The source reminds Canadians that business owners can split income with family members who work for a company. Additionally, Canada Pension Plan payments can be split for taxpayers who apply to Service Canada, and other eligible pension plans can be split for those who complete a Form T1032.

Another common mistake made in the final hour is the assumption that the Canada Revenue Agency will correct mistakes. The source suggests many taxpayers mistakenly believe that missed credits or deductions will be caught by the agency and returned to them. But it’s not the CRA’s job to make sure you get every penny you deserve.

Taxpayers working to the final hour might benefit from QuickTax. The Tax Savings Opportunities feature might be a taxpayer’s best bet at receiving every credit earned.

Canadian taxpayers likely know that the annual income tax return deadline is fast approaching. But they might not know about all of the tax credits and deductions they are eligible to receive or the best filing methods to maximize refunds.

According to a report from Canadian Business Online, a number of Canadians miss out on small tax deductions that can really add up. For instance, the source says Canadian taxpayers often miss out on the public transit amount that can be claimed by anyone with monthly public transit passes, and the children’s fitness amount offers credits for parents of children enrolled in eligible sports programs.

But taxpayers who use QuickTax won’t miss out on the savings they deserve.  QuickTax reminds Canadians about the myriad credits from which they could benefit.

Moreover, QuickTax double-checks tax returns before you file them and points out any missed deductions or money-saving opportunities you might have overlooked.

This double-check feature includes optimizing charitable donations and RRSP contributions between spouses as well as carrying forward medical expenses. QuickTax guarantees you will get the biggest refund you deserve.

We’re is so confident in its product that if you receive a larger refund or owe less taxes using any other tax preparation method, you’ll be refunded the applicable paid price for QuickTax.

So don’t delay – get started on claiming every cent that you earned in tax credits in 2009 today.

After you’ve worked hard for years, you deserve to enjoy some luxuries. Why not try to maximize your pension income and alleviate tax burdens this year so you can take that trip you’ve been wanting?

Married Canadians who receive a pension might find they can make the most of these funds by splitting that income with a spouse. Pension income splitting can be advantageous to you if your spouse earns little to no income. It might help you move into a lower tax bracket which means you’ll pay less in taxes overall.

You can split up to 50 percent of your pension income with an eligible spouse. When you share this, a portion of the income tax withheld from this pension will also transfer to your spouse.

Most Canadians will find that their pensions are eligible for sharing. However, the Canada Pension Plan, Quebec Pension Plan and Old Age Security benefits are not eligible for splitting.

QuickTax can calculate the best amount of a pension income to transfer to a spouse with its Pension Income Splitting Optimizer. Let QuickTax help you and your partner get every penny you deserve so you can head someplace sunny after tax season.

Sometimes taxes can seem overwhelming – costly to file, costly to pay and costly to your overall energy. But other times taxes are simple, even straightforward. Simple taxes get even easier with QuickTax Online Free Edition.

If you have a very uncomplicated tax return, you can use this tool for $0 – yes, as the name indicates, QuickTax Online Free Edition is free.

If you receive T-slips such as T4s and T4As, this product might be right for you. The filing option is also good for people who only receive standardized federal and provincial deductions. Or maybe you just have tip income or pension income to claim? QuickTax Online Free Edition will cover your filing needs.

All Canadian taxpayers can use any QuickTax Online product free of charge as long as their simple taxes fit into the criteria above.

The QuickTax Online Free Edition is available at quicktax.ca.

When faced with a large tax refund, some people’s first impulse is to run to the nearest shopping mall or electronics store. Stop! There are much smarter ways to spend your refund.

First, if you took out an investment loan in order to maximize your RRSP contribution, this money should be paid back first. Other debt, such as credit card debt or personal loans, should also be paid back. Making a large payment on a credit card with a high interest rate can save you hundreds of dollars on future interest.

Another smart way to spend your tax return is to make a large lump payment on your mortgage. When applied directly to the principle, this payment can reduce the amount of interest you’ll owe.

Once high-interest debt is paid off, the best way to use a tax return is to add it to a savings account. Tax-free savings accounts (TFSAs) allow you to contribute $5000 in 2010. For families, a Registered Education Savings Plan (RESP) is a smart choice. For every $2,500 you put in a RESP, the government allows a $500 grant. That’s a great way to make your money grow over time.