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You can reduce your tax by preparing family tax returns together. Tax filing should be a coordinated family event.

If your spouse has a low income, don’t forget to claim the spouse or common-law partner amount.

If your spouse cannot benefit from certain tax credits, for example, credits on tuition fees, pension or disability and age credits. Those credits can be transferred to you.

In case the lower-income spouse does not have sufficient income to utilize dividend tax credit, it may be possible to save tax by transferring all the Canadian dividends from the lower- income spouse’s return to the higher income spouse.

If you or your spouse receives eligible pension income, overall taxes may be reduced by splitting pension income between you and your spouse.

Claim all donations on one spouse’s tax return. This can reduce your family tax because donation amount over $200 provides a greater tax relief. By pooling donations together, you can reach the $200 level faster.

Claim all medical expenses on the return of the spouse with lower income if the credit can be used by the lower income spouse.

If you are a single parent and you have dependants living with you, you may be entitled to an amount for an eligible dependant credit.

You may be entitled to claim child-care expenses incurred for any child 16 or under. Report all your children 16 or under on your return. Regardless you incurred child-care expenses for them or not. This will increase the total amount you are eligible to claim. Since expenses is not attributed to specific children.

If you provide care in your home for an elderly or infirm relative, you may be eligible to claim the caregivers tax credit provided the dependant's income does not pass a threthold.

If your child is a student and does not have enough income to use all of the tuition, education and textbook amounts, up to $5000 of those amounts can be transferred to a parent or grandparent. A child’s not used disability credit can be transferred to a supporting parent or other members.

Make sure you file returns for your kids if they earned any income even if they do not owe any taxes. This will create RRSP contribution room which will save them tax later when they contribute to an RRSP.

You can claim up to $500 per child under 16 for registration fees that relate to a qualified program of physical activity.

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Reduce income tax through effective tax planning