Medical Expense

Last Saturday, I volunteered at Immigrant Services Calgary helping low income families and new immigrants prepare their income tax returns.  To my surprise, the most common question they ask was not child tax benefit, RRSP, or RESP, the question that almost every family asked me was if they could claim medical expenses on their returns.  Here are some Q&A’s related to medical expenses:
Q: Can I claim medical expenses if I had no income?
A: If you have no earned income, you cannot claim medical expenses on your return. However, if you have a spouse or common-law partner who had income, he or she can claim your medical expenses on his or her return.

Q: Is there a minimum amount of expenses required before I can claim them?
A: Your medical expenses must be more than 3% of your net income to be of benefit. For example, if your net income was $14,000, your medical expenses would have to be more than $420 before they would lower your tax. If you are married or living common-law, you can combine your medical expenses with those of your spouse to reach the 3% threshold.

Q: Can I carry medical expenses forward?
A: Medical expenses must fall within a 12-month claim period that ends in 2010 (the current tax year). You can carry forward unclaimed medical expenses only if they occur within a 12-month claim period that ends in the tax year in which you claim them.

Example – expense from two years ago

You have a medical expense from December 2008 that you did not claim on your 2009 tax return. You cannot claim it this year, because the earliest 12-month period that ends in the current tax year is January 2, 2009 to January 1, 2010. The receipt does not fall in that claim period.

Education, Tuition, and Textbook Credits

In order to start a new life in Canada, a lot of immigrants choose to go back school to get a local degree. Do you know that as a student, no matter you are part-time or full-time student, part of the tuition and book costs can be used as a non-refundable credit.

Generally, you can claim tuition fees if you paid more than $100 for a course taken at the post-secondary level or for a course that develops or improves skills in an occupation and the educational institution.
Education amount:

• If you were enrolled full-time, you can claim $400 per month
• If you were enrolled part-time, you can claim $120 per month.

Textbook amount:
You can claim this amount only if you are entitled to claim the education amount. The amount is:

• $65 for each month you qualify for the full-time education amount; and
• $20 for each month you qualify for the part-time education amount

Most new immigrants don’t have much income the first few years after they move to Canada. As such, the tax payable would be quite low and could not fully utilize all the non-refundable credits (tuition/books is one of the non-refundable credits).
However, different from other non-refundable credits, you can carry forward unused tuition and education amounts until you have enough income to use them all up. Each year, you first apply the amounts that you have carried forward from last year. Then, if you still have taxable income, you apply whatever portion of current year tuition, education, and textbook amounts that you need to reduce your taxable income to zero. Any amounts that still remain can be carried forward to next year, or transferred to an eligible person.

儿童税务福利金小贴士

最近我帮助了不少家里有小孩的客户，很多家庭都在2010年收到了加拿大儿童税务福利金（CCTB）。如果家庭收入不错，每个月并不着急使用这笔钱，我给他们的建议是，可以给自己的孩子在银行开一个账户，并将收到的这笔儿童税务福利金存入该帐户。那么这笔钱和产生的利息将会作为孩子的收入。每年报税的时候，父母可以填写表格8814（用来给儿童报税）。国税局对待成人和儿童税的税收方式是不同的。一般情况下儿童税务福利金的额度是不会产生税的。但如果不存入孩子的账户，那么这笔收入就要算入父母的收入，并根据父母的税率来纳税。

日本核电站3号反应堆发生氢气爆炸，大家要注意的事情

日本福岛第一核电站3号反应堆发生氢气爆炸，钚泄露 危机涉及日本全境和亚太地区。钚是世界上毒性第二大的物质（世界上毒性第一大的物质为钋）。一片药片大小的钚，足以毒死2亿人，5克的钚足以毒死所有人类。钚的毒性比砒霜大4．86亿倍，比马钱子碱大约3．2亿倍。三号机里有钚，超剧毒，半衰期是24000年，祈祷吧。

日本福岛核电站泄露严重，中国中部、北部的同胞（尤其是沿海城市），为了预防核辐射（真的很严重！）在未来两三个月里如果刮东风、东北风、东南风的时候 出门带口罩、穿长衣（白色为好）、每天洗澡、多摄入含有碘的食物！尽可能不要过多接触海水，不要饮用海水淡化水和食用海鲜。
说几个注意的事项 1.附近飞鸟有没有突然死亡 2.附近水源处有没有大量鱼类死亡 3.蟑螂是极其敏感的生物，注意是否有大量的蟑螂出现。 4.花草反季节现象或突然枯萎。 5.用芹菜煮水饮用，这样可以最大程度清洁你的肺 6.胡萝卜生吃，熟食效果会差很多 7.清洗皮肤的水里点几滴碘酒 8.近期要食用加碘盐 这是我能告诉你们的，大家可以更多的去转载。 哪怕能多让一个人避免灾难，你就努力就非常值得！

BBC新闻：日本已经证实核泄露！现场人员紧急撤离，警告区扩至70km， 美军航母撤离， 日本向IAEA求援。亚洲地区的居民应采取必要措施。在出现下雨的24小时内待在家里，并关闭所有的门窗。穿能遮盖全身的衣物，并一定要遮盖脖子，辐射会第一时间命中甲状腺。请采取积极的额外防护措施。请相互告知。

BBC新闻台最新消息：日本政府证实，因第二波地震波及福岛县核子厂，辐射物质外泄抢救失败，开始漫延到亚洲区域国家，预计今日下午四点抵达菲律宾。要尽量提醒人们，在接下来的24小时内尽量不要外出，穿长袖衣服保护身体免受辐射伤害，尤其保护最易受害的颈项部位，请大家迅速把这信息传达给在亚洲各地的亲人和朋友。

朋友的建议

前一阵子，一个很好的朋友向我提建议说我的博客的内容太专业性了，一般没有会计税务知识的人很难看懂。即使是有相关知识背景的人读起来也很枯燥。我应该把我的博客做得更白话一些。真是一句话惊醒梦中人，仔细想想可不是吗，如果换做我，估计平时也不愿意读这些枯燥的税务条例的。

本来当时就想马上改，可是最近真是忙得手脚朝天，每天打电话问税务常识的，要求报税的，忙得不亦乐乎。但也是乐在其中。每次帮着解决完新的以前没碰到的问题就特别的兴奋，觉得帮助别人的同时，也让自己了解了更多的东西，同时也交了不少朋友。

打算以后不再把大段的税务条例放在我的博客上了。而是和大家分享我为客户做税的实际例子。如果大家有问题，我们也可以在这里讨论。