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Personal Income Tax

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I love tax season so much. No, It's likely that you are looking for someone to help you sleep at night by providing answers to all the questions you have about your personal taxes.

You should be able to file your own taxes if you're single, working, and don't have any investments or additional sources of income. But everything changes and you require professional assistance the moment you get married, have kids, work from home, invest some money, relocate, or encounter any of a myriad of other circumstances.

Here's where we get involved.

Why Am I Not Able to Utilise an Online Tax Software Provider?

Online tax software programs are fantastic, but only if you're prepared to put in the time to learn about all of your potential costs and deductions. If not, you might be losing out, paying more in taxes than necessary, and putting a lot of effort into something you don't find enjoyable. As one of our clients has put it:

What a wonderful encounter. I've been using internet tools, and this was far easier than any tax experience I've had. In addition to being quick and simple (a few back and forth emails, a few forms to sign), my refund was 16% higher than what I had been quoted by one of those online tools.

Dates of Tax Payment and Due

Unless it falls on a weekend, your T1 personal tax return must be filed by April 30 of the following year. If so, the next Monday is when the return is due.

Your return is due on June 15 if you have self-employment income (see below), but you still have until April 30 to pay any outstanding balances. (We realise that's a little strange.)

To avoid late filing penalties, you should file on time even if you are unable to pay the entire amount owed.

A Few Typical Personal Expenses & Deductions

Contributions to the Registered Pension Plan (RPP)

Under certain circumstances, contributions to an RPP may be made for both past and present service.

Child care costs

Children up to the age of sixteen can have their expenses claimed. Nursery schools, nursery schools, day camps, sports schools and in-home childcare services are a few examples of these costs.

Child Benefit (CCB) in Canada

Based on your family's income, the CCB is an income assistance programme that offers monthly tax-free payments. If you meet specific requirements, like as total family annual income and the number and ages of your children, you are eligible to receive the CCB.

Fees and Enrollments

Membership deductions and dues consist of:

  • Dues paid annually to join a trade union or an association of public employees
  • Board dues or professional membership fees
  • Premiums for professional malpractice liability insurance

    • Household Office Costs

    You might be eligible to deduct home office expenses if you work from home for your employer, either full-time or part-time.

    Losses on Business Investments

    You may be able to file a claim for a loss on business investment if you have disposed of a debt or a share of a small business corporation, either actually or by implication.

    Moving Charges

    You can typically claim moving expenses paid if you relocated at least 40 kilometres to attend post-secondary education or to be closer to your place of employment.

    Assistance Payments

    If you have registered the written agreement or court order with the CRA, you can deduct the amount of support payments you paid under it.

    Charges for Carrying and Interest

    Generally speaking, the following can be deducted:

  • Fees for investment management or specific guidance
  • Fees for preparing taxes if you are a business owner
  • Interest on borrowed money used to attempt to generate dividend, interest, or investment income

    • Self-employed or sole proprietors filing a T1 income tax

    Together with any income from employment or investments, business income or professional income from self-employment or your portion of a partnership is reported on your T1 income tax return. Form T2125, Statement of Business or Professional Activities, is where business income is reported.

    The following costs are yours to claim:

    • Cost of goods sold
    • Advertising
    • Meals and entertainment
    • Bad debts
    • Insurance
    • Interest and bank charges
    • Business taxes, licences, and memberships
    • Office expenses
    • Office stationery and supplies
    • Professional fees (includes legal and accounting fees)
    • Management and administration fees
    • Rent
    • Repairs and maintenance
    • Salaries, wages, and benefits (including employer’s contributions)
    • Property taxes
    • Travel expenses
    • Utilities
    • Fuel costs (except for motor vehicles)
    • Delivery, freight, and express
    • Motor vehicle expenses
    • Capital cost allowance (depreciation)

    Encouraging Tax Preparation

    You don't need to take the time for an in-person visit because our tax services are available virtually. We offer intake forms tailored to various personal circumstances, which enable us to gather all the information required to properly prepare your tax returns and guarantee that your taxes are minimised.

    The relevant form can be completed and submitted through our secure client portal, along with all of your other documents. It's critical that we comprehend your current circumstances as well as any alterations from the previous year.

    If you would like to talk about a complicated tax situation you are in, we can meet in person or virtually through Teams or Zoom.

    Do You Have Unfiled Tax Returns?

    Not to worry! We make catching up simple for you.

    To verify that we are an authorised representative, simply use your CRA My Account. We can then obtain all pertinent information slips that the CRA has issued to you over the previous five years. Consider how much time you could save by not having to search for all of this information.