Category Archives: Finances

How To Enter the Disability Tax Credit For Adult Dependants Using StudioTax 2015

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If you are paying for the essentials of life such as food and shelter for your parent and if that parent is also eligible and approved for the disability tax credit, you may want to file for the disability tax credit on their, or your, income tax return. Recently, I was asked how to find the place to enter the information about transferring the disability tax credit for adult dependants to their caregiver on the tax return forms using StudioTax 2015.

Caution: Make Sure Your Tax Software Is Approved for NETFILE Before You Complete Your Taxes

NOTE: As of January 31, 2016, unfortunately, StudioTax 2015 like most tax preparing programs is not yet approved for NETFILEing your return. If you want to take a “test run” at calculating how much tax you owe, however, you can download the current version for free and then download the update later once the program is approved. I’m confident StudioTax will be approved in time but they will have to adjust the software with the tax filing license number, etc, once they receive it, so you will have to update your version before filing.

How to Open the Federal Worksheet in StudioTax 2015 to Claim Line 318

StudioTax does not automatically open all of the forms that you might possibly need to complete your annual tax return. Instead, it keeps them in reserve and you can choose to open the ones you need. Here’s how to find the Federal Worksheet form.

Selecting a New Form in StudioTax

  1. Along the top of the StudioTax window is a list of icons.
    Click on the one called: Forms
  2. At the top left side of the new window, StudioTax will display a list of Federal Forms.
    Scroll down to find the form: Federal Worksheet
    and highlight it.
  3. Click on the down facing arrow below that list to put the Federal Worksheet into the box titled: Added Forms
  4. Click on the OK button.
  5. The Forms window will close.

UPDATE: One reader advised they also received the following information from StudioTax’s help desk: “”Use the Dependants button to enter the parents as dependants, set the status as disabled and claim the disability credits.” I hope this will help others and thank you to the person who provided this helpful insight!

Opening the Federal Worksheet Form in StudioTax

  1. Now back on the main StudioTax page, in the Forms box on the left side of the screen, find the new listing for: Federal Worksheet
  2. Click on it to open it.
  3. As you read through the Federal Worksheet form, you will find the section that includes Line 318 for the Disability Tax Credit.

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Do you have a dependent disabled parent living in your home who is eligible to transfer some of their DTC to you? Is this the way you claim your credit? Please share your insights into the murky mists of the CRA’s requirements with a comment.

Where Can I Get a Good or at Least Decent Rate on a GIC for my RRSP?

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With the stock market pundits forecasting that THIS time it really is the end of the world, many people don’t want to put their RRSP money into a stock, mutual fund or ETF at least not yet. Leaving aside the arguing about whether it’s actually a great time to buy since prices are low, I decided to look and see what rates are available for a RRSP guaranteed investment certificate, GIC, and whether they are good, decent or awful.

Big Banks Do Not Often Offer Great RRSP GIC Rates

Sometimes one of the big Canadian banks will surprise me by offering a good rate for a RRSP GIC. Not this year though.

BMO has 0.85% for a one-year term or 1.25-1.5% for a 5-year term.

CIBC has a bonus rate RRSP GIC at 0.9% for a one-year term or 1.3% for a 5-year term.

Scotiabank has a 1-year at 0.9% and a 5-year term at 1.5%.

TD has a 1-year term GIC at 0.85% and a 5-year term at 1.5%.

Royal has a 1-year term GIC at 0.9% and a 5-year term at 1.5%.

None of these are cashable before maturity. There may be other terms and conditions so be sure to read carefully before you lock up your money in any GIC.

Remember banks often have some discretion about setting their rate. Ask if you can get 0.5% more. They will probably say no, but they might offer 0.25% just for asking.

E-Banks Offer Better RRSP GIC Rates

There was a time when ING Direct operated in Canada and they used to offer some quite nice rates for GICs. Now the former company is called Tangerine and is owned by Scotiabank, and the good rates seem gone.

Tangerine is offering a 1-year term GIC at 1.2% and a 5-year term at 1.9%. Better than the “big banks” but still not great.

PC Financial, which is owned by CIBC, is offering a one-year term GIC at an APY of 1.2% and a 5-year at 1.9%. Yes, that’s the same as Tangerine.

There are some smaller, newer e-Banks though.

Oaken Financial, which is controlled by Home Trust, is offering a one-year term RRSP GIC paying 1.95% and a 5-year term paying 2.5%. That 2.5% is the same amount offered for a 2-year term by Zag bank but you’re earning it for more years. In case you’re interested a 2-year term is 2.1%.

Zag Bank, which is run by Desjardins, has a 2-year term RRSP GIC paying 2.5%. You have to invest before June 1 2016. For a 1-year term GIC, their rate is 1.05% and for a 5-year GIC their rate is 1.90%. So you can see the 2.5% 2-year rate is definitely a lure.

EQ Bank isn’t offering RRSP GICs at this time.

Where Should I Buy My RRSP GIC in 2016?

So none of these places is offering a great rate for a RRSP GIC.

Personally, I’d seriously consider Oaken Financial for a one-year term RRSP GIC.  I’ve been using their services for over a year for GICs for part of our emergency fund and I’ve been pleased with the service. (By the way, I get nothing from Oaken if you buy one. I’m a customer not someone with a business connection to them!)

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Have you found some place offering a better RRSP GIC rate? Please share your victory with a comment.