Q: I began working as a freelancer last year. I've never filed my taxes as a self-employed person before, and when I went to [Big Tax Franchise*] they quoted me a minimum of $500 to file my taxes as a small business. Is this true? Why? A: The bad news is, your information from [...]
How to respond to a letter from CRA without losing your mind Getting a letter from the Canada Revenue Agency (CRA) can make your heart skip a beat—but before you go into panic mode, take a deep breath. The good news? It’s probably not as bad as you think. Here’s how to handle it calmly [...]
April 30 may have come and gone, but if you haven’t filed your income taxes there’s still hope. It’s always worthwhile to file as soon as possible, even if you’ve missed the magic date. Self-employed, freelance or sole proprietor? You may not actually be late! If you or your spouse have self-employment or freelance income, [...]
Contributing to your RRSP is a great thing, but an RRSP loan isn't always the best way to do it. Around this time of year you’ll start seeing banks promoting the idea of RRSP loans, where you borrow money to make an RRSP contribution. If you have no cash available, and if an RRSP contribution [...]
Do You Need to Register Your Business in Canada? Starting a business can be exciting and challenging, but many people are unsure about one key question: Do you need to register your business in Canada? This question can seem complicated because "registering a business" can mean different things depending on the context. Let’s break [...]
Plan ahead to get a tax bonus using the money you've saved for tuition The Canada Revenue Agency encourages continuing your education via the Lifelong Learning Plan, or LLP. Under this program you may make a tax-free withdrawal from your RRSPs when you are entering an educational program as a full-time student for at least [...]
What does a Demand to File letter look like? A Demand to File letter, usually referred to simply as a Demand letter, is a request for a tax return from the Canada Revenue Agency (CRA). CRA sends out demand letters for returns that Have not been filed Are likely to have tax owing CRA doesn’t [...]
Changes to Canadian tax law As of June 20, 2024, psychotherapy/counselling therapy services rendered by psychotherapists and counselling therapists are exempt from the GST/HST. Medical services have always been exempt from GST/HST, and the scope of what falls under the umbrella of exempt health-related services has been expanding. The latest inductee: psychotherapy. What does the [...]
Can a joint-tenant qualify as a first-time homebuyer? Q: I'm a joint tenant in my current home, and I'm ready to buy my own place. Can I use the Home Buyers' Plan (HBP) or the Tax-Free First Home Savings Account (FHSA) as a first-time homebuyer? A: To take advantage of the HBP and/or FHSA, [...]
Understanding Your CRA Notice of Assessment Receiving a notice of assessment from the Canada Revenue Agency (CRA) can be an anxiety-inducing moment, especially if it states that you owe tax you believe you've already paid. However, before succumbing to panic, it's crucial to understand the nuances of the assessment process and how to effectively [...]
