| Even if you lost your job this past year, it's still | | | | means, unlike our American neighbours, you cannot |
| mandatory that you file your taxes. If you were part of | | | | use job-hunting as a tax expense in Canada. However, |
| the more than 1.5 million Canadians who found | | | | if you accept a new job and move more than 40 kms |
| themselves unemployed due to the recession, paying | | | | for it, you can deduct some of those moving |
| taxes is most likely the last thing you want to think | | | | expenses. If you decide to take a new path entirely |
| about. Most people who lost their jobs either turned to | | | | and go back to school, you are allowed to borrow |
| unemployment insurance or became self-employed, | | | | money from you RRSPs to use for tuition. |
| either way, creating new challenges on their 2009 tax | | | | If you are re-training, upgrading or starting over for a |
| returns. | | | | new career, you can borrow from your RRSP under |
| People who have been exercising the use of their | | | | the Lifelong Learning Plan to pay for the costs of going |
| unemployment insurance are generally surprised to find | | | | to school. The government will allow you to withdraw |
| out they have to claim their benefits as income on their | | | | up to $20,000 over a four-year period for this purpose, |
| tax return. If you've started a business in the past year, | | | | however, once you graduate or finish the course, the |
| you are considered self-employed and are now | | | | money must be repaid within ten years. Also, if your |
| responsible for keeping track of expenses for things | | | | re-training involves government assistance tuition, the |
| such as your home office, gas allowance and earnings. | | | | tuition is considered a taxable benefit and must be |
| A few tips that may help get your over the filing tax | | | | claimed. You can claim those benefits against your |
| hurdle: | | | | student credits to help offset the income amount. |
| If you're collecting unemployment insurance benefits, | | | | These student credits would include things like tuition |
| the government will provide you with a T4E slip for | | | | fees, education amount and the Textbook Tax Credit. |
| receiving them. This slip is to be used to claim the | | | | Most people don't realize that it is perfectly okay to |
| proper amount of insurance as income on your tax | | | | collect EI insurance and start your own business. You |
| return as this income is taxable and needs to be | | | | do need to be able to prove that you are operating a |
| included in your total income for the year. | | | | business in the event CRA asks. |
| Canada does not support job-hunting tax credits, which | | | | |