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With the 2019 tax deadline fast approaching many Canadians are focused on maximizing their tax return. The Canadian Revenue Agency (CRA) requires all private income tax returns to be filed , while self-employed have until June 17, 2019 to file.
If you do think you’ll owe taxes, however, or you may incur penalties.
For a full list of deductions you may be eligible to claim it’s important to seek financial advice, or use a tool like TurboTax.
TurboTax is a tax software that makes filing your taxes online easy, and is supported by real-life tax specialists who can step in to advise if needed. After signing up online, TurboTax can guide you through your entire 2019 return, prompting you with questions and advice at every step, to ensure you get the maximum refund.
One often overlooked deduction on anyone’s tax return is insurance. The list of insurance deductions for salaried individuals is very short. Individuals can often deduct private health insurance premiums on your tax returns, as well as any medical expenses. Likewise you could be eligible to claim the medical component of your travel insurance. That is, only the portion of your travel insurance – no matter why you traveled – used for medical coverage will be eligible.
Meanwhile, small business operators and sole traders have a raft of insurance deductions they can claim.
If you use a car for business purposes you may be able to claim your insurance. It’s important to note that any insurance costs related to your own motor vehicle have to be claimed as “motor vehicle expenses”. That means your insurance costs need to be tallied up with your annual fuel, registration and maintenance costs, and then pro-rated to the amount you use your vehicle for business. The insurance cost will not be a separate line on your tax return. However, if you purchase supplementary business insurance for your vehicle, you can claim that in its entirety under “insurance”.
Other stand-alone motor vehicle expenses you can claim in their entirety include any parking fees incurred purely for business purposes.
The TurboTax can help you work out the correct amount to claim.
If you use a portion of your home for your business, you can apportion a percentage of your home insurance cost as an eligible expense. Again, the TurboTax tool can help you calculate the correct amount to claim.
As we mentioned above, individuals can claim any purely medical portion of their travel insurance regardless of the reason for the trip. Self-employed and small business operators meanwhile can claim the full cost of any work-related travel insurance.
Any commercial liability insurance or equipment insurance you pay can usually be deducted from your business expenses.
Maximizing Your Claim
Regardless of your employment status, or how you make your money, tools like TurboTax are available to help guide you through your return. Intuitive, step-by-step procedures help you identify and explore every possible deduction, to maximize your return and put more of your money back in your pocket.
Pro tip! If you are self-employed, you can usually claim your TurboTax software license as an eligible business deduction. You can find out more at TurboTax.
We recommend that you try TurboTax Self-Employed to help you claim all your deductions. And don’t worry if you’re a little unsure of getting it right, TurboTax has tax experts who can help with using Assist & Review – Self-Employed. Save up to 20% when you file your taxes with TurboTax! (Valid until 4/30/19)