Some deductions work for everyone, like RRSP contributions, while some deductions only apply to certain people. This includes the deductions for moving expenses for new owners and the deductions for child care expenses for working parents. There are two other tax deductions to which many of you may be entitled.
Student loan interest
According to an estimate by Hoyes, about one in five debtors they dealt with had student debt. This is an indication that many people have student debt. Any interest paid on eligible student loan debts is a tax deduction that you can write off. And you don’t have to claim this tax credit right away. You can postpone it for up to five years. It is therefore best to keep it for a year when you expect a high tax bill.
Only loans that fall under the Canada Student Loans Act, the Canada Student Financial Assistance Act and similar provincial (or other territorial) loan programs are eligible for this deduction.
Licensing exams and union dues
Market crashes force many people to reassess their status and their professional and educational situation. Additional certification or certain licenses can help you progress in your field, take up secondary jobs or start your own small service / business. The costs of these certifications and license fees can be considered as expenses that you can write off in your taxes. But not if your employer pays them.
Likewise, if you pay union or professional dues to an organization, other than union dues deducted directly from your paycheck, you can claim them in your income tax returns. Many professional insurance premiums are also eligible for tax deductions.
Use of tax deductions
The more you save from your tax deductions, the better. If you are looking for growth, one way to best use this amount is to invest it in a business like EMX Royalty. It has a market capitalization of only $ 194 million. The company is focused on generating consistent cash flow for its investors through strategic investments and the acquisition of royalties in mineral exploration and the mining industry.
The company is trading at $ 2.2 per share, 17% below its annual high. This is an incredible growth stock with five-year returns of 144%.
Understanding and claiming all tax deductions is part of better managing your finances. The same goes for an investment plan. The more you save, the more you have to invest and increase your wealth. With the tax deadlines changed, you now have more time to explore your options and expand your investment portfolios.
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Crazy contributor Adam Othman has no position in any of the titles mentioned.