For the week of October 24, 2012

Breaking News

► Step one: set your goals, says David Christianson

► Economic update: Dispelling global uncertainty

► Evelyn Jacks: New relationship? Beware of tax consequences

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Poll Question: Should governments increase taxes on investment income dividends and capital gains to increase revenues and meet their responsibilities?

DISTINGUISHED PRACTICES: Tips for Real Wealth Managers™: Broader interpretation of transfer pricing

Did You Know? Legislation in both official languages

Tax Tips: How the CRA is helping small business

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Featured Book: Master Your Money Management

Featured Web Tools: Featured Program: EverGreen Explanatory Notes

Tax Tips:

Looking for work? Here’s a tax trap

Most people know that, for income tax purposes, a parent can deduct the cost of a babysitter or nanny for the care of the children while he or she works. In most cases, the lower-income earner claims the deduction.

In fact, you can claim child-care costs if you earn income from self-employment as well as employment, attend school either full-time or part-time, or carry on research for which a grant was received.

But did you know that if you are receiving Employment Insurance benefits, you cannot deduct the costs of child care while you are out job hunting? EI benefits don't qualify as "earned income” for child-care deductions. So, you are out of luck; that's often an unpleasant surprise at tax-filing time.

Discuss taking child-care deductions with your advisors: receipts are required as the claims are often audited, but first ensure your family qualifies for the claim on Form T778.