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Almost Tax Time - Question Regarding Notice of Assessment and TTC Tax Credit

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  • Feb 4th, 2015 7:25 am
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[OP]
Deal Addict
Nov 11, 2004
2491 posts
458 upvotes

Almost Tax Time - Question Regarding Notice of Assessment and TTC Tax Credit

TTC
Can I claim passes for the same month. For example, my girlfriend and myself have TTC passes for October. Since I am in the higher bracket, a tax refund on my return would net a larger refund. Can I claim both passes?

Notice of Assessment
So I'm looking at my NoA for Tax Return in 2013. The last paragraph states:
We have adjusted your federal claim for tuition and education amounts from $809 to $1,112. We have also adjusted your corresponding Ontario claim from $984 to $1,602. This includes unused federal and provincial/territorial amounts from prior years of $1,112 and $1,602 respectively.
Does the above mean that I have unused federal/provincial tax credits?

THANKS
4 replies
Deal Addict
Dec 26, 2009
2301 posts
971 upvotes
Tilter wrote:
Feb 3rd, 2015 7:15 pm
TTC
Can I claim passes for the same month. For example, my girlfriend and myself have TTC passes for October. Since I am in the higher bracket, a tax refund on my return would net a larger refund. Can I claim both passes?
Since it is a tax credit (and not deduction), it doesn't matter what income bracket you are in.

Edit: http://www.taxplanningguide.ca/tax-plan ... ax-credit/
A tax deduction reduces your taxable income, with the actual amount of tax saved depending on your personal marginal rate of tax.

A tax credit, on the other hand, is a deduction from tax owing. Provided the credit can be used, each taxpayer receives the same tax relief with a tax credit regardless of his or her particular tax bracket.

The provinces are free to either follow the federal tax credit system or introduce tax credits that are unique to the particular province. In many cases, the amount of the provincial credit will differ from its federal counterpart.

The tax credit sections that follow generally just comment on the federal tax credit. For 2014, federal personal tax credits are calculated as 15% of specified “personal amounts” and are allowed as a deduction in calculating your federal tax liability. Keep in mind that the provincial tax credits may or may not parallel the treatment provided at the federal level.
Deal Addict
Jan 2, 2015
1371 posts
396 upvotes
Toronto, ON
Tilter wrote:
Feb 3rd, 2015 7:15 pm
TTC
Can I claim passes for the same month. For example, my girlfriend and myself have TTC passes for October. Since I am in the higher bracket, a tax refund on my return would net a larger refund. Can I claim both passes?
Yes.
Only you or your spouse or common-law partner can claim the cost of transit passes (if these amounts have not already been claimed) for:

yourself;
your spouse or common-law partner; and
your or your spouse's or common-law partner's children who were under 19 years of age on December 31, 2014.
The tax bracket does not matter (flat 15% for non-refundable tax credits), but if your partner has enough taxable income, it won't hurt if she claims hers instead of you claiming hers.
Notice of Assessment
So I'm looking at my NoA for Tax Return in 2013. The last paragraph states:

Does the above mean that I have unused federal/provincial tax credits?

THANKS
Nope. You used all your tuition/education amount/textbook credits.
[OP]
Deal Addict
Nov 11, 2004
2491 posts
458 upvotes
FoFai2015 wrote:
Feb 3rd, 2015 8:40 pm
Yes.



The tax bracket does not matter (flat 15% for non-refundable tax credits), but if your partner has enough taxable income, it won't hurt if she claims hers instead of you claiming hers.



Nope. You used all your tuition/education amount/textbook credits.
Thanks for the reply. My dreams have been dashed at getting extra funds back. But why did they include that last paragraph on my NoA? #FalseHope
Deal Addict
Jan 2, 2015
1371 posts
396 upvotes
Toronto, ON
The last sentence isn't false hope, it's just telling you how much of your previous credits were used (all). Of course, it's written in gibberish and so just causes confusion.

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