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Spousal RRSP If your spouse or common-law partner does not work or does not have a pension plan, consider making spousal RRSP contributions so as to split your RRSP or RRIF income when you retire.

Be On Time If you have any balance outstanding, make sure to file on time even if you don't have money to pay. This will save you late filing penalty of 5% plus 1% per month, for a maximum of 12 months.

Employment Expenses If you are an employee earning commission income, you may be able to deduct certain expenses you incurred to earn that income, such as entertainment expenses, travel, etc. To deduct these expenses you must have form T2200 completed & signed by your employer to show that you meet the necessary conditions.

Research Grant If you receive a research grant, you can deduct your research expenses, such as equipment rental, hiring assistance, fees and travel expenses, from the amount received. The total expenses cannot exceed the amount of the grant.

Moving Expenses If you moved in order to begin working at a new location, you may be able to deduct certain moving expenses. To qualify, your new residence must be at least 40 kilometers closer to your new work site than your old residence.

GST Credit If you are turning 19 sometime after December 31, 2003 and before April 1, 2005, make sure you file a 2003 income tax return and apply for the GST/HST Credit. You will start receiving the credit on the next payment date after your birthday.

The income thresholds and the amounts used to calculate the GST/HST Credit are slightly higher this year, so you may qualify for the credit this year even though you did not do so in previous years. You must file a 2003 tax return in order to claim this credit. If you have a spouse of common-law partner, only one of you may apply for the credit on behalf of both of you.

Efile You can speed up your tax refund by filing your return electronically, especially if you have it deposited directly into your bank account. In most cases, you will receive your refund in less than two weeks.

Dividend Tax Credit Be sure to claim the dividend tax credit for any dividends you receive from taxable Canadian corporations. If your income is too low to benefit from the credit, your spouse or common-law partner may be able to report the dividends instead in order to take advantage of it.

Medical Expenses Medical Expenses are reduced by 3% of net income. It may therefore be more advantageous for the spouse or common-law partner with the lower net income to claim all the medical expenses.

Medical expenses can be claimed for any 12-month period ending in the year. If your income is too high to claim medical expenses in 2003, you should save them for a possible claim next year.

Child Support Child support payments are not taxable if your agreement is dated or changed after April 30, 1997. Likewise, the person making such payments is not allowed to deduct them.

Scholarship Income The first $3000 of scholarship income or bursaries is non-taxable if the program qualifies for the education amount. If the program does not qualify for the education amount, the first $500 is non-taxable.

Tuition & Education Amount If you do not need to use the full amount of your tuition fees and education amount on your 2003 return, you may carry them forward to a later year, or transfer them to your spouse, common-law partner, parent or grandparent.

Capital Gain On Principal Residence A capital gain on the sale of a principal residence is exempt from tax. Thus, you are not required to pay income tax on any profit you make on the sale of your home if you used it as your principal residence for the entire time you owned it.

Capital Gain & Inclusion Rate If you make a profit on the sale of a capital property, you are required to pay income tax on only 50% of your capital gain.

Foreign Tax Credit If you receive income from a foreign country, tax may have been withheld at source. If the tax was in the nature of an income or profits tax, you may claim a foreign tax credit or a deduction on your Canadian return.

Foreign Tax Credit Dividends from foreign corporations are not eligible for the dividend tax credit. However, you may claim a foreign tax credit for any foreign tax withheld.

Overpayments of CPP/EI Premiums If you worked for more than one employer, you may have overpaid your CPP/QPP or EI premiums for the year. You can claim the excess as a credit and have it refunded to you.

Deadline Generally, the filing deadline for 2003 tax returns is April 30th, 2004. But if you or your spouse or common-law partner is self-employed, the deadline is June 15th, 2004. Remember balance outstanding is still due on April 30th, 2004.

Canada Child Tax Benefit (CCTB) You and your spouse both have to file tax returns to receive your CCTB. If you don't file your tax returns your benefits will be stopped. New Immigrants have to file Child Tax Benefit Application to start receiving Child Tax Benefit.

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