File On Time Even If You Can’t Pay Now
Why does tax season have to come when the sun is shining and there's good stuff on TV? Reasons to always file on time, even if you can't afford to pay now.
Do You Need To Pay Income Tax Installments?
The Canada Revenue Agency requests that some Canadians pay their income tax by installments through the year. The majority of Canadians don't have to make quarterly tax installment payments toward their income taxes because their employers deduct sufficient tax at source throughout the year to cover their tax bill. But those who have sources of [...]
Don’t contribute to your RRSP until you read this!
Contributing to an RRSP is always a great move, right? Not so fast. RRSPs reduce your taxes by sheltering income from tax when you contribute. You will pay the income tax later when you withdraw the funds, which is ideally when they’ve had a few years to grow (tax-free), and when you’re in a lower [...]
Facing the Fear: Why You Should File Your Late Tax Returns
Video: Overdue Tax Returns - Should You File? The Short Answer Is ‘Yes’ Filing old late tax returns. Should you do it? I know I’m biased. I am a tax professional and I prepare tax returns for a living. Of course I'm going to tell you to file your tax returns. But bias or no, [...]
Do I need T2200S to take the Work-From-Home deduction?
For the 2020 and 2021 tax years, Canadians were allowed a special Work-From-Home credit for time spent working from home during the Covid-19 pandemic. The credit can be calculated two ways: using a flat rate, or doing a calculation involving a percentage of utilities and/or rent costs. The flat rate requires no additional documentation. Any [...]
RRSPs: What you should know if your income is low
So it’s RRSP season again, and you’re trying to decide how much (if anything) to contribute this year. This is especially a question if you didn’t end up earning much. Here are the top three things you need to know about RRSPs in a low-income year. 1. RRSPs are less helpful to people with low [...]
What do the RRSP figures on my Notice of Assessment Mean?
Q: After a few years of low income, I'm finally ready to start contributing to my RRSP again. But looking at my Notice of Assessment I completely forget what the RRSP numbers mean. My notice from last year's taxes gives me the following: RRSP deduction limit: $15,000 Unused contributions previously reported & available to deduct: [...]
Turn your tax bill into a refund!
How to avoid owing tax and get a refund instead Q: I work two jobs and I always owe tax at the end of the year. I feel like I'm getting punished for hard work. How do I make it so I get a refund instead of owing tax each year? A: That is a [...]
Business Deductions: The Reasonable Expectation of Profit
Business owners, freelancers and self-employed people have many questions about what they can and can't write off for their taxes. This is a potentially endless topic. There are an infinite number of possible businesses, with an infinite number of ways they can be run; meaning there are an infinite number of potential business deductions. The [...]
No Good Deed Goes Untaxed
Parents want the best for their kids, and that often extends to giving away some of their assets in order to help their adult children get established in life. But while Canadian tax law renders gifts exempt from tax for the receiver, they can be taxable for the giver due to rules around capital gains. [...]