Applying Automobile Credit in 2010 Tax Returns – 2010 Automobile Tax Credit
2010 Federal Historic Rehabilitation Tax Credit program was designed to preserve historical buildings that bring history in a city. With the cooperation of National Park Service, Internal Revenue Service and State Historic Preservation Offices work hard to maintain the maintenance as well the restoration of treasured buildings for the future generations.
Here’s the additional information you need to know regarding automobile tax credit for 2010. 1st and foremost, on your new car you might get a tax credit of $2,500 to $7,500 depending on your vehicle’s battery.
You must gain knowledge to determine the four different kinds of alternative fuel motor vehicle. For better understanding I will enumerate the types of alternative fuel vehicle tax benefits.
A lot of people don’t realize that they can claim a tax credit for many different and common medical expenses. If you have an “extended” or private health and dental plan through work, you can claim the premiums you paid (not if your employer paid them on your behalf; not any public provincial-sponsored plan; and not any life insurance portion) for the year. So check your last paystub from December – you may have paid over $1000 just in premiums this year! Other allowable expenses are eyeglasses, dental work, hearing aids, prescription drugs, and chiropractor visits – just remember, it’s only the portion of the expense that you have not been reimbursed for. There is an easy-to-read list of allowable medical expenses on the CRA website – it’s worth a quick browse through to see if you are eligible to claim any of them.
Now that I’ve got you all excited, a few things to note: You can claim expenses for you, your spouse/common-law, and your dependent children 18 or younger. The claim must be 3% of your net income, or $2024, whichever is lower. Either spouse can claim, you just need to do the math to see who it benefits more. You can claim your expenses for any 12-month period ending in 2010, that were not claimed in 2009. So, if you had a bunch of medical expenses in 2009 that you never realized you could claim, you can claim them in 2010, as long as you only claim for a twelve-month period. Your other option is to write CRA and ask for a re-assessment for prior years, submitting the necessary documentation. I did this about 4 years ago, after I found out a year later I could claim all the travel and meal expenses for my daughter’s numerous Ophthalmology exams. It was an easy process, and within 6 months I had just under $300 refunded to me by Mr.Revenue Canada. A small, but sweet justice for all those long kilometres spent stuck in traffic….
Qualified Alternative Fuel Vehicles – It uses compressed natural gas, liquefied natural gas, propane (liquefied petroleum gas) and hydrogen. Since such cars are more expensive, their tax credit is higher too as compared to other cars.
For moving expenses, CRA allows you to claim expenses if you moved 40km or more closer to attend post-secondary school full-time, to carry on a business, or to be employed. Some of the expenses you can claim are storage and transportation costs, travel expenses including meals and accommodations, temporary accommodations, legal and realty fees if you had to sell your home, vacancy costs if your home doesn’t sell, utility hook-up and disconnection fees, and the cost to change your address and driver’s license. Again, look at CRA’s website under Line 219 – Moving Expenses for a complete understanding.
Apart from these, there are certain SUVs as well as Sedan Cars also which are eligible for automotive credit. But one important criteria is that such vehicles should weigh less than about 8000 pounds. If you have a car, then applying automobile credit can save you a lot of tax liability and may also qualify you for a higher refund in 2010 Tax returns
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit