Putting a couple to a “tax test” – should you go it alone or enlist some help when wading through potentially complicated tax waters?

It's been a busy year for Chris and Jennifer Jacques. The Winnipeg couple recently got married, had a baby and were both involved in a serious car accident resulting in loss of work, medical expenses, disability and insurance payments.

So, when it came to filing their taxes this year, they were at a loss on how to go about it.

“Who do you go to?” asked Chris Jacques from his Wolseley home. “And do you pay $300 for five cents of advice?”

Skepticism aside, the Jacques agreed to be put to a “tax test.” They attempted to file online using the tax software UFile and also met with an accountant with Grant Thornton LLP.

Paul Beatty said accountant fees generally range from a few hundred to a few thousand dollars, depending on the complexity of the return. But, said it can be money well spent.

"If you bring (your taxes) to us, we would say, ‘Are you missing (anything)? You've got two kids, eight and 10. Are they doing any sports?’ So, we’ll ask some of those questions. That is going to provide you some tax savings," he said.

But an accountant isn't the only way to navigate a potentially complicated return. Tax specialists at services such as H&R Block also provide insight into tax credits and savings. Their fees start at about $70.

H&R Block senior tax analyst Caroline Battista said the fees include year-round assistance and audit assistance.

“So, if you receive a letter from the (Canada Revenue Agency) and your medical expenses are higher than normal, we take care of that for you in the off-season.”

As for the Jacques, the accountant got a return of $12,501 and charged $250 in fees.

The Jacques got back $12,516 by doing it themselves online at a cost of $25.95.

However, the accountant claimed their medical expenses and didn’t use Jennifer’s RRSP contributions. The Jacques didn’t claim medical expenses, but did add her RRSPs, which according to Beatty would not benefit them this year due to her reduced income.

“We would have plugged in Jenn’s RRSPs, where (Beatty) explained to us that because of Jenn’s lower income, not necessary. Hold them off until next tax year,” said Chris.

Chris Jacques said even though they got more money back by doing their taxes online, overall the felt more confident using an accountant.

“It's nice to have the peace of mind that I wasn't breaking any laws. And it's nice to know the money we should be getting back, we are getting back,"

According to the Canada Revenue Agency 25 per cent of Canadians filed their taxes online, 53 per cent filed electronically through a tax preparation service or an accountant and 22 per cent filed using pen and paper.

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New tax credits

This year there are a number of new tax credits to help benefits families.

The Family Tax Cut allows couples to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket to reduce their income taxes. Families will be able to reduce their taxes by up to $2,000.

There is also an increase to the Universal Child Care Benefit for children under the age of six from $100 to $160. As well, there is a new benefit of $60 per month for children aged six to 17. While the enhanced child care benefit came into effect on Jan. 1, 2015, payment will begin in July of this year, meaning the first payment will be a lump sum from the first six months of the year.

The maximum amount that can be claimed under the Child Care Expense Deduction will be increased by $1,000. Information is available on the Canada Revenue Agency's website.

Know how to work your RRSPs

Grant Thornton LLP accountant Paul Beatty said a common mistake among couples with vastly different income levels is having both make monthly RRSP contributions.

“They’d be much better off to take that pool of funds and have the higher income spouse make all contributions, provided they have the room. People are making RRSP contributions, you know what, you’re not getting any tax relief for this.”

Commonly missed credits

Senior Tax Analyst with H&R Block Caroline Battista said some commonly missed tax credits include the Children’s Fitness and Arts Tax Credits. The credits allow you to claim a 15 per cent non-refundable tax credit on the fees you paid to register a child in a program of eligible activities up to $500 per child per credit. This could potential give you a credit of up to $75 per child per credit. Battista said the arts credit can also include activities such as Girl Guides and Scouts.

She said another commonly missed credit is for children who are looking after elderly parents in their home, as they may be able to claim them as dependents.

There’s an app for that, sort of

Finally, if you’re confident in what you need to claim, and meet certain requirements you can also file right from your smartphone. SnapTax by popular online tax software brand TurboTax is a free mobile app that allows you to file by either inputting data right on to your device, or by snapping a photo of your forms. It’s available for Manitobans, but you must be under the age of 65 and not have any children or dependents. It will also only allow you to submit T4, T4Es and T5 slips, RRSP contributions, charitable donations and student tax deductions.