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Pack Responsibly

Nelson & District Credit Union will strive to provide members with solutions to help them pack responsibly for their unique life-stages and reach their viewpoints. This process is called the Financial Hike.

What is a Financial Hike?

Your Hike starts with identifying your goals. Nelson & District Credit Union will create a personalized guidebook to help you reach them.

Healthy, long-term strategies incorporate all elements of your financial affairs. How you pack one element influences how you pack another. We offer professional financial planning and access to virtually every investment product and service in the marketplace today.

The information below will assist you in considering the best path to take and which guide to choose. Please contact us at thehike@nelsoncu.com for more information.

Many Happy Returns

Many Happy Returns

By: Bradley Roulston, CFP

"Though it is fine to pay taxes, you don't have to leave a tip"

It's that time of year again - to organize yourself and file your taxes. Since taxes are usually an individual's single largest expense, we recommend using the services of a qualified & trusted accounting firm. Save unnecessary accounting fees by organizing yourself better in advance. Whether you hire a firm or do-it-yourself, below is a list of items to consider when filing your taxes. Your situation may have more/less income, deductions and/or credits.

- List any minor, infirm or elderly dependants (total amounts paid and to whom, childcare expenses)

- File all your sources of income (salaries, commissions, pension, pension income from spouse, OAS, CPP, EI benefits, Universal Child Care benefit, partnership income, taxable gains and losses, alimony/separation allowance, RRSP & RRIF income, self-employed/business/professional income)

- Tally and file your receipts for deductions and credits (RRSP contributions, professional dues, childcare expenses, child fitness expenses, moving expenses, alimony/child support payments, charitable/political donations, medical/dental expenses, public transit passes, education expenses/tuition/textbook amounts, Employment Insurance repayment, Registered Disability Savings Plan repayment, pension income split to spouse, losses from previous years, RRSP Home Buyers Plan withdrawal, RRSP Lifelong Learning Plan withdrawal)

- Self-employment (gross revenue/income, accounting/legal/consulting expenses, advertising, business tax/fees/license/dues, equipment rentals, insurance, bank charges, light/heat/water, maintenance/repairs, management/administration, meals/entertainment, office, private health insurance premiums, salaries, travel, business property taxes, supplies/postage)

- Vehicle (lease/financing payments, cost of car when you bought it, fuel, maintenance, total kms driven, total kms for business, parking, cleaning)

- Home office (total sq footage/rooms in home, total sq footage/rooms for business, heat, hydro, water/sewer, repairs/maintenance, property taxes, mortgage interest, insurance)

- Rental income (address, income, advertising, insurance, interest, light/heat/water, maintenance/repairs, property taxes, personal use %, co-owner information)

Other suggestions

1) Pension splitting: If you're age 65 or older, you can split income from an annuity, Registered Retirement Income Fund (RRIF) or Registered Pension Plan (at any age) with a spouse to reduce your overall family's tax bill. Pension income amounts for both you and your spouse are eligible for a $2,000 pension income tax credit.

2) Charitable and political contributions: Pooling your charitable contributions with your spouse will maximize the amount eligible for a higher total credit. For political contributions, tax credits are highest at lower contribution levels, so claim political contributions separately from your spouse.

3) Capital losses: If you have capital losses this year, be sure to claim them to offset any capital gains. Carry back 3 years or carry forward indefinitely.

4) Children's Fitness Tax Credit: You are entitled to a tax credit for any fees paid to an eligible program of physical activity for children under 16 years of age — up to $500 per child.

5) Tax credit for public transit passes: You can claim a tax credit based on the cost of monthly (or longer) public passes for local transit.

6) Deferral of RRSP deduction: If you made an RRSP contribution for 2008 and expect your income to be higher this year, you can defer the deduction indefinitely to a higher-income year - get more bang for your RRSP buck.

7) Medical expenses: You can claim all medical expenses incurred by you and your spouse for any 12-month period that ends in the current tax year.

8) T2200 form signed by your employer: If you are an employee, it is still possible to deduct a home office, your car and meals/entertainment expenses.

9) Avoid deducting your disability insurance premiums: This will change the tax-free status of your benefit.

For tax information and support, contact your trusted accountant. For financial & insurance services, please contact your financial services representative at Nelson & District Credit Union or Investment Advisor at Allard Insurance Agencies Ltd.

For a financial consultation, email: thehike@nelsoncu.com

Added on April 7th, 2009

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