Tips on Tax Carry Forwards

Some tax credits and tax deductions can be carried forward. If you or your spouse are unable to use specific tax credits and tax deductions during a year, and your unable to split them with your spouse then do check to see if you are able to carry them forward. Some tax credits that can be carried forward include tuition and education amounts, student loan interest and charitable donations. Some tax deductions that can be carried forward include moving expenses, employment expenses and losses. Losses are very powerful and not only are you able to carry most losses forward, but some losses can even be carried back to get taxes back from prior years. Remember that Capital Losses need to be applied against Capital Gains, however Non Capital losses can typically be applied against any income. To Carry a Loss back you must complete a T1A – Request for Loss Carry Back. Remember also that if you have missed something on a prior year’s tax return you can complete a T1 adjustment to amend that prior year’s tax return and receive a refund from tax you paid in prior years