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BC Early Childhood Tax Benefit

It is a new type of Tax Benefit for BC family.

If you received the CCTB (Canada Child Tax Benefit) and National Child Benefit Supplement, for low income family, you may receive BC Early Childhood Tax Benefit.

there are approximately 180,000 B.C. families that are now receiving up to $55 per month, or $660 a year, for each child under the age of six. As part of the B.C. Early Years Strategy, the B.C. government is committed to improvin gthe affordability of child care and assisting families with the cost of raising young children.

This benefit is Tax Free.

bc-early-childhood-benefit

 

To apply or get more information about it, click the link below to British Columbia Government site.

http://www.mcf.gov.bc.ca/childcare/tax_benefit.htm

It is Tax Season again – Using Studio Tax

Every year we file our tax return to CRA. This year, I still recommend Studio Tax for the normal people. Normal people means, the people are not investor, not boss, not an officer. If your main income is from employment, Studio Tax is right for you.
It is the sixth year, I am using Studio Tax. It is a free software for personal use. Max 20 returns.
It is still early. So only pre-certified software can be download here.
When CRA review the software and make it certified, the you can update the software and make the return online.

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Three basic types of Income

As we know, all taxpayers resident in Canada must declare income from all kinds of sources, including those outside Canada, and must pay tax on their own taxable income.
There are three basic types of income.
Employment income
Most of our Canadians earn income through employment. Employment income includes all benefits the employee receives in connection with the services he provide to employer. So it is including any bonuses, gratuities, or honorariums, as well as any retiring allowance.
Basically, employer will withhold and remit to the Canada Revenue Agency on your behalf your income tax and Employment Insurance and CPP/QPP. The whole year records will be shown on the T4s.

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Tax-Free Saving Account of Canadian

Starting in 2009, a tax-free savings account (TFSA) is a new way for residents of Canada to set money aside tax free throughout their lifetimes.
Contributions to a TFSA are not deductible for income tax purposes and the income earned in the account (for example, investment income and capital gains) is tax-free, even when it is withdrawn. Interest on money borrowed in order to contribute to a TFSA is also not tax-deductible.
The above definition is copied from CRA site.
The person who is at least 18 and with valid SIN card and is a Canadian resident can have this kind of account.
For 2009, if you are eligible, you can contribute up to $5,000 to your TFSA. After 2009, the annual TFSA dollar limit will be indexed to the inflation rate.
It is one kind of Tax Free tools to save your money.
There is one issue of TFSA vs RRSP or other unregistered investment.
Capital Gain and /or Capital Loss

2008 RRSP tips for Canadian

1) Start early and invest regularly
Regular investing puts the power of compound growth on your side. And the earlier you start, the more you may have in the future.
2) Reduce taxes today
RRSPs are designed to help build your financial future and the contributions have the added benefit of being tax deductible. By making RRSP contributions on every pay day, you can take advantage of potential and immediate tax savings – by asking your employer to deduct less tax off your paycheque.
I recommend TaxCut by H&R Block
to prepare your 2007 tax return for USA residents.
3) Think global
As Canada makes up only about 4% of global stock market capitalization1, global investments can play an important role in reducing risk and increasing return potential. A portfolio made up of several types of investments from different countries may be stronger over the long term – and less exposed to risk – than one that’s invested in a single country, asset class or type of investment. That’s why a sensible approach for most investors is a globally diversified portfolio that includes Canadian and international stocks, combined with fixed income investments.
4) Consider an asset mix strategy
It is important to have the right asset mix as studies show that asset allocation is the key driver of a portfolio’s performance. 2 Typically, as you get closer to retirement your mix should become more conservative to emphasize asset preservation over growth. Conversely, younger investors with more time before retirement can afford to be more aggressive in their approach.

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Tax Decuctions you may Overlook

These Deductions are only work on the Blogger, like you or me.
Don’t get caught leaving money on the table. Here’s a list of potential deductions that you might have overlooked. Consider:
1. Monthly Hosting Fees or Annual Hosting Plan.
2. Annual Domain Costs, say $8 each per year
3. Design/Logo Fees
4. Internet access fees – this clearly includes DSL, Cable or dial-up, but don’t forget charges that you might pay away from your home or office such as wi-fi charges in Internet cafes
5. Paid blogging platform charges (such as Typepad monthly charges or add ons through WordPress)
6. Cell phone usage
7. Long distance usage related to your blog – remember that the IRS will not allow you to deduct the cost of your primary land line but you may deduct long distance charges
8. Second phone line for business or fax
9. Design or word processing software – this includes Photoshop, Illustrator, Word and similar programs for business use
10. Computers
11. Keyboards, mice and other periphery
12. Web cameras
13. Digital cameras – and memory cards
14. Film processing for traditional cameras
15. Costs paid to use or reproduce images
16. Downloaded music or other audio
17. Blackberry, Treo, iPhone charges
18. Business cards
19. Headshots for web site or promotional materials
20. Letterhead – remember that printed materials not be professionally printed to be deductible!
21. Promotional stickers and items – Frisbees, magnets, etc.
22. Web advertising – text and banner ads including AdWords,
23. SEO services,
24. Paid site submissions
25. Prizes for giveaways and contests
26. Postage – it’s impossible to keep track of every single stamp that you use in your business, so buy a sheet or two and keep them in a folder just for business use
27. Post box fees – I recommend this if you’re working from home, it looks professional, it’s inexpensive and it keeps sales people from showing up on your doorstep late at night
28. Transportation – this includes mileage for car transportation, train and bus fare for public transit, cab fare, airline tickets, so keep a good transportation log is better way.
29. Dining while away on business
30. Hotel charges for overnight conventions and business travel
31. Entertainment for clients
32. Professional advice (from lawyers, accountants and tax preparers)
33. Tax software, like Quicken Tax
34. Accounting software
35. Copy paper, memo pads, photo paper
36. Office supplies – pens, folders and post-its can add up!
37. Books, magazines and subscriptions
38. Professional affiliation and membership dues
39. Professional informational sites (like imdbPro)
40. Paid research sites (like LEXIS/NEXIS)
41. Trademark fees and related costs
42. Conference fees – such as for BlogHer and BlogExpo
43. Promotional sponsorships – golf holes at tournaments, that sort of thing
44. Charitable donations – limited to the cost of the production, not the FMV of the final product (in other words, if you blog about quilts and you donate a quilt, your deduction is limited to the cost of the quilt materials, not the FMV of the quilt)
45. Backup tapes
46. Zip drives
It is not easy to track every each item above. I always recommend that you can make a clear list and prepare some record paper to log each one by your pencil.
(The list are based on the 46 Tax Deductions that Bloggers Often Overlook)

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