The Canadian federal government admits that fiscal support for Canadians is crucial in 2021. Aside from protecting the people’s health, more spending on aid to individuals are necessary. There are three little-known expenses or deductions you can claim from the Canada Revenue Agency (CRA). Know them all as the tax season is fast approaching.
1. Child care expenses
Aside from the regular Canada Child Benefit (CCB) and forthcoming temporary top-up for young families, you can claim child care expenses incurred in 2020. To qualify, the child must be living with the claimant when the costs were incurred.
Qualified child care expenses include payments to caregivers providing child care services, day nursery schools and daycare centers, and educational institutions (only fees related to child care services). Expenses for day camps and day sports schools are allowed provided the camp’s primary goal is to care for children.
The CRA will not accept claims such as medical or hospital care, clothing, or transportation costs. Likewise, tuition fees of a regular program or a sports study program and fees for leisure or recreational activities do not qualify.
2. Moving expenses
Many Canadians are also relocating to work, run a business or study as a full-time student (post-secondary program) in a new location. The CRA allows individuals in such circumstances to claim moving expenses. It must be at least 40 kilometres closer to your new work, business or school in terms of distance.
3. Disability supports deductions
If you have an impairment in mental or physical functions and spent for certain medical expenses, you can claim the disability supports deduction under certain conditions. Only the person with a disability can claim expenses for this deduction. The expenses are necessary so you could work, attend school or do research work for a grant you have received. The CRA might require prescriptions or medical certifications to support this claim.
Super regional bank
Income opportunities in 2021 abound, especially in the stock market. Canadians looking for eligible investments in a Tax-Free Savings Account (TFSA) shouldn’t pass up on the National Bank of Canada (TSX:NA). The sixth-largest bank in Canada is a reliable income provider.
The $24.15 billion bank is the most dominant financial institution and leading franchise in bustling Quebec. National Bank derives about 60% of total revenues from the province. Its international footprint is relatively small (15% of revenues) than the bigger industry peers, although it should expand soon.
Small and medium-sized enterprises (SMEs) in Canada get valuable financial support from this super-regional bank. Most of National Bank’s investments, particularly Credigy in the U.S. (80% stake) and ABA Bank in Cambodia (100% owned), are geared towards organic growth. In Q1 2021, the bank will acquire the remaining 20% of Credigy.
The current stock price is $71.87, while the dividend offer is an attractive 3.95%. Your TFSA contribution limit of $6,000 will deliver $237 in tax-free money. National Bank’s payouts should be safe and enduring, given the 50% payout ratio. Analysts forecast the price to climb 22.44% to $88 within the next 12 months.
Save time and effort
If you’re claiming any of the expenses mentioned above, visit the CRA website to ensure you don’t miss out on the nitty-gritty. You can save time, effort and claim only the eligible expenses.
Speaking of three little-known payments from the CRA in 2021...
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