Archives for Taxes

Gasoline tax rebates, how to get them!

  

Provincial Gasoline Tax Rebate for Persons with Disabilities

People with certain disabilities may apply for a refund of tax paid on fuel purchased for their motor vehicles. The refund is based on the amount of taxes paid, to a maximum of $500 annually.

You must meet all of the following criteria to qualify for the program:
– you must be a "person with disabilities" as defined in the Motor Fuel Tax Act
– you must be at least 16 years old
– you must be a registered owner or lessee of a motor vehicle, or provide a letter from the registered owner indicating you are a joint owner of the vehicle

Qualified persons must first register before claiming a refund. Please see Register for the Fuel Tax Refund Program for Persons with Disabilities.

 

Applications and supporting documentation should be sent to:

Consumer Taxation
Branch

PO BOX 9442 STN PROV GOVT
VICTORIA BC  V8W 9V4

Fax: 250-356-219

 

Federal Excise Gasoline Tax Refund Program

If you are medically certified as having a permanent mobility impairment, and you cannot safely use public transportation, you can apply for a refund of part of the federal excise tax on the gasoline you buy.

For more information and an application form, see Information Sheet XE8, Federal Excise Gasoline Tax Refund Program.

Need access to your family member’s tax records?

  

You can have the ability to access the tax records of your family member with a disability to instantly find out whether they took advantage of all their credits/deductions or even if they did their taxes last year.

The Consent Form is called Authorizing a Representative (T1013) and can be found at:

http://www.cra-arc.gc.ca/E/pbg/tf/t1013/t1013-09e.pdf 

A person can have more than one consent form on their account so don’t worry if your family member has already authorized a tax preparation firm to represent them with the CRA.

You will be asked whether you want Level 1 or Level 2 authorization.  Level 2 allows adjustments to be made to returns so request Level 2 if you think you may need to make changes.

Also, make sure you and your family member are signed up for instant on-line access to your CRA account.  It is called an E-Pass and it takes about a week for the paperwork to go through the system, but you will never have to sift through a pile of old paperwork looking for your RRSP limit again!  Find the application form for an E-Pass at:

http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html 

 

Updated T2201 (Disability Tax Credit Application form) now has “Diagnosis”

  

If your applications for the disability tax credit has been turned down in the past (for you or a family member) you might want to try to apply again.  The application form, the T2201 which is filled in by your doctor was updated in Jan 2010 to include a section on diagnosis, which was not included in the past versions of this form.

Find the on-line form here:

http://www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html 

Tax Tips for Working Folks

  

Thanks to the Tax Detective, here are some tax tips for the person with a disability who decides to work, even for a low amount of income.  There are incentives to work, some new, some old, in the tax system.  Some government benefit programs are dependent on the calculation of net income and may be affected by increased net income, but there are several claims for expenses that may reduce the calculation of net income.

A program for the working poor, Working Income Tax Benefit will actually pre-pay benefits if you can figure out how to claim.  More information: Line 453 WITB

By claiming medical expenses you may find a supplement you are entitled to, a credit of about $1,000 per year…see Line 452: Refundable Medical Expense Supplement

If you work and pay for Child Care, child care is usually only deductible by the lower income spouse, unless there are extenuating circumstances, such as a parent in school, infirm, jail or hospital. The result of claiming child care is to lower net income.  If the claimant is a person with a disability, reducing their net income will aid in preserving tax credits for a claim by a supporting spouse or other family members and may also reduce the impact on other government benefit programs that rely on the calculation of net income, such as Persons with Disability Benefits, Pharmacare and MSP premiums.

Disability Supports Expense

If a person with a disability works and has certain medical expenses that qualify including attendant care and various devices and equipment, all listed on the T929, they may be claimed on Line 215 to reduce net income.

A benefit of disability supports expense claims is other credits such as the disability tax credit may still transferrable to supportive family because net income is lower than the total of other credits.

The family may also claim other credits such as the caregiver or infirm over 18 tax credits. These credits are all dependent on the calculation of net income, so it makes sense that if the disability supports reduce net income, this is a good thing.

Normally medical expenses don’t reduce net income.  They are reported on Line 330 as a medical expense credit and the taxpayer must deduct 3% of their net income or on Line 331 if paid by the supportive relative net of 3% of the net income of the person with the disability who is supported.

Only the person with the disability can claim Disability Supports on Line 215 and only for the calendar year.  There is no carry over for 24 months in year of death or flexibility of claiming any 12 months that end in the year, or having their spouse claim instead if it’s more advantageous, all of which are possible with medical expenses, both on Line 330 for self, or if paid by someone else on Line 331 net of 3% of the supported persons’ net income.

Eileen Reppenhagen, CGA, ACG, CL

www.taxdetective.ca 

Renovations tax credit doubles up with Medical Expenses Tax Credit in 2009 tax year

  

HRTC deadline January 31, 2010
2009 Budget: It’s possible to double dip into the Home Renovation Tax Credit (HRTC) and Medical Expenses where renovations relate to a lack of normal physical development or severe and prolonged mobility impairment! For details about the HRTC with links to the original budget, and subsequent information pages from various government departments, lists of what’s eligible and what’s not…Surf to HRTC and bookmark it to review next tax season

Home Renovation Tax Credit and Medical Expenses

  

The Tax Detective has a great tax tip on her blog about the Home Renovation Tax Credit and how at the same time you can claim medical expenses on your return. Check it out…

Free Tax Preparation for low-income families

  

Free Tax Preparation for low-income famlies:

The CRA has an on-line list of Volunteer Tax preparation clinics and two local sites are  listed below:

1.  The B.C. ACORN Centre has now opened its free tax preparation service for low-income and working families in Metro Vancouver. To book an appointment for your FREE 2009 tax preparation, call the New West office or visit ACORN’s website.

    Surrey/Vancouver
    36 Begbie St.
    New Westminister, BC V3M 3L9
    Phone: 604-522-8706
    Fax: 604-522-8780
    bcacornva@acorn.org

    http://www.acorn.org

    2.  MOSAIC is offering free tax-preparation every Tuesday and Wednesday at their Burnaby office unitl April 28th.  You MUST make a reservation, call MOSAIC Burnaby at 604.636.4712 and ask for Angel.

    The offices are located at 

    7297 Kingsway
    Burnaby, B.C. V5E 1G5

    Phone:  604.636.4712
    Fax: 604 636 4729

    Directions

     

     

     

     

     

    Tax Problems? Call the New Taxpayer’s Ombudsman

      

    CBC has reported that a new Ombudsman position has been created to deal with complaints about treatment of taxpayers. J. Paul Dube is the new Ombudsman and he is interested in humanizing the Canada Revenue Agency so that the average person has a fighting chance when dealing with tax issues. Visit the website for information about the Taxpayer’s Ombudsman.

    RDSP and Representation Agreements

      

    My 26 year old son has opened up an RDSP with BMO.

    We were told that BMO’s Legal Dept. does not recognize

    Representation Agreements. From  PLAN I understand that

    this is not uncommon. We were able to set it up by going

    into the branch for every step. We found the BMO branch 

    at Brentwood Mall in Burnaby to be very helpful.

    Disability Tax Credit DVD

      

    The DTC DVD is now on TaxSpecialist Group website, courtesy of Peter Weissman, CA TEP of Cadesky & Associations, LLP in Toronto. http://www.taxspecialistgroup.ca/disability/en.htm Make sure you wait for the Video vignettes to upload.  It’s well worth the wait as they are funny and really do help to portray an impairment.  At the moment there are only three vignettes.  We are told that the rest are in progress, to be released later this year.  Check back for updates.