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Your Tax Dollars Helped To Slash The Poverty Rate In Half. Plus Other Ways You're Helping

Your Tax Dollars Helped To Slash The Poverty Rate In Half. Plus Other Ways You're Helping
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Maybe Uncle Sam didn't cut you a break on Tax Day, but we're here to offer you some perspective. Instead of expressing your financial frustrations, remember that you're contributing to important programs that are the backbone of our country. Here are four reminders:

1. Safety Net Programs
About 12 percent of the federal budget in 2013 helped families in need. Without your tax dollars helping to fund safety net programs such as SNAP, the poverty rate would have been 29.1 percent in 2012, nearly double the actual 16 percent, according to the Center on Budget and Policy Priorities. These initiatives assist elderly people in need of housing assistance, poor people who can't put food on the table and children facing abuse, for example.

2. Education
Funding for elementary, secondary and vocational education, as well as student financial aid for college and employment training for people with disabilities, makes up just under 3 percent of your total income tax payment this year, according to the White House's Federal Taxpayer Receipt.

3. Veterans
Your tax dollars help fund important programs that provide education, income and housing support, health care and disability services for veterans, according to the Department of Veterans Affairs. That money aids, among others, the veteran population most in need -- post-9/11 vets, who face PTSD at a rate of between 11 and 20 percent, and an unemployment rate of 9.9 percent, which is higher than that of the civilian population.

4. Natural Disaster Relief
Spending on natural disaster response and insurance, including FEMA grants, makes up only .90 percent of your total income tax payment, according to the White House. These funds help those affected by recent disasters, for example, the mudslide in Washington, the Rim Fire in California and severe storms and flooding in Nebraska.

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Before You Go

12 Things You Need To Know About Filing Taxes
Have All The Right Documents (01 of12)
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Keep a copy of every investment account in which you have non-registered funds and make sure you have a T-slip for all the investment income (dividends, interest, capital gains) you earned during the year.
Make The Most Of Your Claims (02 of12)
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Locate your notice of assessment from the year before to see the exact amount of RRSP contribution you can make this year. Also, check if there are any unclaimed contributions.
Do You Have Any Expenses Carried Over?(03 of12)
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From that same notice of assessment document, check to see if there are any expenses that have been carried forward that you may use this year.
A Key RRSP Trick(04 of12)
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If your income is going to be substantially higher next year, do not claim your RRSP contribution this year. Wait until the following year when you are in a higher tax bracket to claim it.
Are Your Kids In School?(05 of12)
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If you have children currently enrolled in post secondary education, consider transferring the tuition credit to your own tax return.
The Disability Tax Credit May Be Right For You (06 of12)
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If you or anyone in your family has a medical condition that restricts your daily activities, consider filing for the disability tax credit. You may be able to recover this tax credit as far back as 10 years – which is equal to about $1,500 a year.
Don't Forget Your Other 'Home'(07 of12)
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If applicable, don't forget to record the capital gain on the sale of your cottage in Canada or vacation property outside the country. However, you may not always have to declare your summer home. Talk with your accountant to see what makes better financial sense. If the cottage, for example, has increased substantially more in value than the house you currently reside in, it may make sense to declare the summer home as your principal residence. Remember, this move does not attract capital gains and defers paying capital gains on the home you reside in.
Do You Travel For Medical Care?(08 of12)
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If you need to travel outside of your region for medical care, don't forget to claim meals and travel for yourself and your spouse.
Did You Give Back Last Year?(09 of12)
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If you live in a household with two taxpayers, consolidate donations and have one taxpayer claim them all. This way the tax credit increases substantially on donations over $200.
For Those Of You Not Earning As Much(10 of12)
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If your income is low, don't forget to report your rent or property taxes in order to qualify for provincial tax breaks for rent and/or an HST refund, for example.
Talk To The Professionals(11 of12)
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Stuck? Get in touch with an accountant. To be extra cautious, ask if they attend tax update seminars through the year to stay current. Avoid people who strictly rely on tax software.
Keep All Your Files In Order(12 of12)
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This year, keep a file handy to hold all of your receipts and other documents required for filing taxes. This way, everything will be in the same spot come April of 2015.
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