Back to School Tax Breaks

Like tax season, back-to-school season rolls around annually with certainty. But in today’s inflationary environment, the start-up costs for getting the family organizing for the school year may seem daunting. The good news is that tax and financial advisors can help clients understand their tax planning options and manage all the receipts that can lead to tax breaks later in the spring during tax filing time. Here’s a primer of topics you may wish to discuss:

"I am grateful for the blessings of wealth, but it hasn't changed who I am. My feet are still on the ground. I'm just wearing better shoes.” - Oprah Winfrey

Employees who earn their living negotiating contracts for their employers or selling on commission may claim certain itemized sales expenses, income tax preparation costs, legal fees incurred to defend charges incurred in the normal course of business, as well as auto and travel expenses.

Ready for a fourth tax bracket?  That’s just one piece of news in the Manitoba Economic and Fiscal Outlook delivered March 8, in advance of provincial election in which the current government will face significant challenges; now even more so with the announcement of  a $770 million deficit.

It’s important that fragile investments stay intact as markets recover. For this reason, it makes absolutely no sense to overpay any personal income taxes in advance on the March 15 quarterly instalment remittance deadline. Astute tax and financial advisors will make sure their clients encroach on only the right amount of capital for these purposes, especially if they are retirees.

According to Statistics Canada, Canada’s fourth quarter current account deficit has increased by $0.1 billion to $15.4 billion. This is a seasonally adjusted amount. On an annual basis, our current account deficit increased from $44.9 billion to $65.7 billion in 2015.

Applications for the 2016 DAC Young Advisors Award are now being accepted for the Distinguished Advisor Conference Young Advisors Award.  The award is open to young advisors actively engaged in the financial services industry for at least five years and under the age of 35.