Toronto Accountant Provides Personal Tax Return Tips:

1. Tax Tip 1 - Contribute to Your RRSP

By contributing to your RRSP, you will receive a tax deduction for the amount that you contributed. The maximum amount that you can contribute to your RRSP (know as your 2009 RRSP deduction limit) can be found on your 2008 Notice of Assessment.

Many Toronto Accountants recommend RRSP's because not only do you receive a tax deduction, any income that you earn inside your RRSP is tax-free. The deadline for contributing to RRSP's for the 2009 tax year is February 28, 2010.

2. Tax Tips 2 - Child Care Expenses

Ask your Toronto Accountant about the generous child care deductions available to Canadian taxpayers. You are entitled to a deduction for child care expenses paid up to a maximum of $7,000 for each child born in 2003 or later, and up to a maximum of $4,000 for each child born in 1993 to 2002. Child care expenses include, but are not limited to, day care costs, summer camp fees, and amounts paid to a babysitter.

3. Tax Tip 3 - Home Renovation Tax Credit

You can claim a tax credit of 15% on the cost of renovating your home. This tax credit can be applied to reduce the taxes that you owe. For purposes of the Home Renovation Tax Credit, only renovations greater than $1,000 but less than $10,000 will qualify. So make sure to ask your Toronto Accountant to tally your home renovation receipts, when preparing your personal tax return!

4. Tax Tip 4 - Employment Expenses

As an employee, your are entitled to deduct certain employment expenses that your incurred and that were not reimbursed by your employer. Such expenses include the cost of supplies, automobile expenses, parking and travelling expenses.

If you are a commissioned sales employee, you can deduct expenses that you paid for and that are related to earning income from sales. For example, advertising costs, meals and entertainment, office rent, internet and telephone are all costs related to earning commission income.

Please ensure that your employer completes form T4044, as the CRA will require a completed copy of this form to support your employment expenses claim.

5. Tax Tip 5 - Tax Return Preparation Fees

You can deduct fees paid to a Toronto Accountant or another accountant for preparing your personal tax return. However, the fees paid can only be deducted to the extent that you have income from investments or income from a business.