According to tax-preparation company H&R Block, the 5 most overlooked tax tips are:
1. Claim medical expense tax credit:
Many people arent aware of the wide range of expenses that can be claimed under the medical expense tax credit. A few examples are: premiums paid on your employers healthcare plan, deductible or out-of-pocket expenses not covered by your plan, and premiums on healthcare insurance purchased for travel purposes.
2. Claim disability tax credit:
Again, there is a long list of medical conditions eligible for this credit and you might be surprised to find that you or someone you know can file a claim (as long as it is supported by a doctors certificate). If you qualify, the amount can be substantial since you can claim the credit as far back as ten years.
3. File returns for children earning income:
A child under 18 who works part time or during the summer months may have had taxes deducted at source from their paycheque. Filing a return could result in a refund if their income is below the basic personal amount. Reporting income will also increase the childs RRSP contribution room for future years.
4. File returns for 18 year olds even if they have no earnings:
Adolescents turning 19 before April 1, 2012 should file a 2010 tax return even if they earned no income. They will be able to collect the GST/HST credit for the quarter following their 19th birthday.
5. Claim mom and/or dad:
If your parents are over 65, live with you, and have a relatively low income, you may be able to claim them as dependants.