Tax Season Is Here – February 2014

By November 24, 2015Uncategorized

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Welcome To Tax Season

The following are commonly missed deductions/credits and issues that may be relevant:

  • GST credits – if you are 19 years or older – many people don’t file income tax returns for a number of years because they were not working and have no income to report. If you are 19 years or older, even if you have no income to report or tax to pay, it is still beneficial to file income tax returns because you are likely eligible to receive GST credits from the government. If you think you have not filed tax returns since turning 19 please contact me so we can assess your situation.
  • First-time home buyers credit – $750 credit against your income taxes owing if you bought a property during the year for the first time.
  • First-time donors super credits – if you made a donation for the first time, there is a new super tax credit for first-time donors.
  • Moving expenses – if you moved more than 40 km for purposes of full-time employment or attending a post-secondary education institution (university or college) you are entitled to deduct your moving expenses from your income.
  • Foreign property of $100,000 or more – if you own foreign property with a cost of $100,000 or more, you have to fill out the T1135 form and file it with your tax return. There are significant penalties if this is not filed so be sure to contact your tax professional to see if you are required to file this.

To make your tax return preparation a more efficient process, you should do the following:

1) Make a folder or binder and label it TAX – 2013

2) Whenever you receive any tax-related document – place it in that folder

For example: T4s, T3s, T5s, RRSP contribution slips, donation receipts, medical expense receipts, child fitness tax credit receipts, child arts tax credit receipts, copies of metropasses, tuition receipts, professional dues receipts

3) Ideally – scan in and keep the copies on your computer (always back it up on a separate hard drive and/or cloud technology). Then you can simply e-mail your documents to your tax preparer instead of dropping off a folder full of disorganized papers. You do not need to keep hard copies of any documents.

4) Keep the folder/scanned copies of all tax documents for 6 years

Important Dates

Individual Tax Returns

  • 2013 personal tax returns must be filed by April 30, 2014 if an amount is owing on the return
  • Amount must be paid by April 30, 2014
  • RRSP contribution deadline for the 2013 year – March 3, 2014

Sole Proprietors & Self-Employed

  • Deadline to file your 2013 personal tax return – June 15, 2014
  • Deadline to pay amounts owing on your 2013 personal tax return – April 30, 2014 (even though the return can be filed until June 15, 2014, the amount owing must still be paid by April 30th, 2014)

Important Dates for Corporations

  • Deadline to file your personal tax return – April 30, 2014
  • Deadline to file your corporate tax return – 6 months following the year-end date
  • Deadline to pay amounts owing in corporate taxes – 3 months following the year-end date
  • Deadline to file T4/T5 returns with the CRA (salary and dividends respectively) – February 28, 2014