At Expert Fiscaliste let us prepare your tax returns for you. Our tax experts help you get every tax refund you deserve because we know how hard you work. This means that we work for you to make sure you get all the deductions and tax credits you are entitled to and offer you year-round tax advice. Rapidity changing and increasingly complex tax legislation means that experienced personal tax return preparation is essential for all individuals. Our experts receive extensive training to keep current on all the tax changes to ensure you get back all the money you’re entitled to. Expert Fiscaliste will support you throughout the year if you are audited or asked questions by government authorities or interested in tax planning.
It’s that time of the year again and we offer convenient, accurate, and affordable preparation of all types of tax returns. We’re equipped to handle any tax situation, including personal returns, rental properties, estate/trust, and foreign income. We’ll make sure that you get the maximum refund possible, and we provide you with tax support after the tax returns are filed. Just follow three simple steps. For more information on how click here for our PDF
Tax Returns can be complicated and extremely time consuming. Tax payers can be particularly challenged and stressed in knowing what information is required in compiling a tax return. Use our check list to help you prepare the documents that you will need for your 2016 tax return.
Tax-free savings accounts are available for Canadian residents who are 18 years of age or older. The first tax year that they were available was 2009.
There is no deadline for contributions to a TFSA, as the unused contribution room is carried forward into the next year. However, a withdrawal in any year increases the TFSA room in the following calendar year. Thus, if you are thinking of making a withdrawal close to year end, make sure it is done by December 31st, in order to have the withdrawal amount added back to the TFSA room sooner.
In a tax-free savings account:
All investment income (interest, dividends, trust distributions and capital gains) will accumulate tax free
Considering this all capital losses are not tax deductible, and
not eligible for Canadian dividend tax credits
Interest on money borrowed to invest in TFSA is not tax deductible
Contributions are not tax deductible
Excess contribution are subject to 1% monthly tax
Contributions are reported directly to CRA by your financial institution (ask your tax professional for your details)
2017 contribution annual limit is $5,500, for total of $52,000 contribution room
2015 limit $10,000
2013-2014 limit $5,500 annually
2009-2012 limit $5,000 annually
Withdrawals are not taxable
Death of the TFSA Holder
Can name a spouse or common-law partner as “successor holder” and on death the spouse keeps tax exempt status without affecting the spouse’s contribution room
Martial Breakdown or divorce
Can transfer directly to former spouse without affecting their contribution room.
Taxes are likely the last thing on your mind before the end of the year but for individuals payments made before December 31st can allow for deductions or credits for the current year ratherthan a deferral to next year.
Consider these (2) types of payments that individuals normally can claim:
Maximize medical expenses
While medical expenses must be paid by Dec. 31 to a claim a tax credit for 2016, the related good or service doesn’t always need to be acquired in the same year. You may want to do this to exceed the minimum threshold
This provides an opportunity to prepay certain items for 2017 and claim them for 2016, if it enables you to exceed the minimum of 3% of Net Income. For couples either spouse can claim the medical expenses so the 3% of Net Income of each spouse is very important consideration.
Maximize charitable donations
If you’re going to make a qualified charitable donation, and if you make the payment before the end of the year you will get donation credit on your 2016 taxes.
Universal child care benefit (UCCB) – The UCCB has
increased to $160 per month for each qualified dependant under 6 years of age and there is a new benefit of $60 per month for each qualified dependant aged 6 through 17.
Child care expenses – The maximum limit per child has increased by $1,000.
Family caregiver amount for children under 18 years of age – The amount for children under 18 years of age has been eliminated and replaced by the enhanced universal child care benefit.
Family tax cut – For 2014 and later years, the calculation for the family tax cut has been revised to allow unused tuition, education, and textbook amounts transferred from a spouse or common-law partner.
Children’s fitness tax credit – The children’s fitness tax credit is now a refundable credit.
If you hold a corporate class mutual fund, or plan to purchase one, we want to make sure you’re aware of an upcoming change that could affect you. The 2016 federal budget includes a change to all corporate class funds that eliminates the ability to switch between different classes of shares within a mutual fund corporation without triggering a capital gain or loss, effective October 1, 2016.
You must file a return for 2015 if any of the following situations apply:
You have to pay tax for 2015.
You have received a request to file a return for 2015.
You and your spouse or common-law partner elected to split pension income for 2015.
You received working income tax benefit (WITB) advance payments in 2015.
You disposed of capital property in 2015 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you, or you are reporting a capital gains reserve you claimed on your 2014 return).
You have to repay any of your old age security or employment insurance benefits.
You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan.
You have to contribute to the Canada Pension Plan (CPP). This can apply if for 2015 the total of your net self-employment income and pensionable employment income is more than $3,500.
You are paying employment insurance premiums on self-employment and other eligible earnings.
Even if none of these requirements apply, you can file a return for other reasons:
CRA now allows tax return preparers to electronically transmit PAD agreements to authorize CRA to debit a predetermined amount directly in a taxpayers bank account, at a specified date, to pay the income tax of this taxpayer. To transmit a PAD agreement, complete Part F, “Pre-authorized debit agreement”, of Form T183.
As a self-employed individual, you and your spouse or common-law partner has until midnight on Wednesday, June 15, 2016, to file your 2015 income tax and benefit returns. Any balance owing for 2015 must be paid by April 30, 2016. However, as this date is a Saturday, the Canada Revenue Agency (CRA) will consider your payment to be made on time if the CRA receives your submission or it is postmarked by midnight on May 2, 2016. A late-filing penalty on amounts owing may apply to returns received after the June 15 deadline.
Due date to file a GST/HST return
If your reporting period is monthly or quarterly, you have to file your GST/HST return and pay the amount you owe no later than one month after the end of your reporting period.
If you have an annual reporting period, there are two possible rules, depending on your situation:
if you are an individual and you have a December 31 fiscal year-end, you have to file your GST/HST return by June 15 and pay the amount you owe by April 30
in all other cases, you have to file your GST/HST return and pay the amount you owe no later than three months after the end of your fiscal year
Small Business Job Credit
You may be eligible for a refund of employment insurance premiums paid for 2015 and 2016 under the new Small Business Job Credit
Other important facts
If you own a business or are engaged in a commercial activity, keep thorough records. Your records have to give enough detail to determine the tax you owe and support any benefits you are claiming, and they must be supported by original documents.
Generally, your return for 2015 has to be filed on or before April 30, 2016. For the 2015 taxation year April 30th due date falls on a Saturday, and CRA will consider your return to be filed on time if we receive it or it is postmarked on the next business day or May 2, 2016.
If you or your spouse or common-law partner carried on a business in 2015 has to be filed on or before June 15, 2016. However, if you have a balance owing for 2015, you have to pay it on or before April 30, 2016.
Filing Late Tax Returns & Penalties
If you have a balance owing for the year, you are charged compound daily interest starting May 1 on any unpaid amounts owing. This includes any balance owing if your return is reassessed. In addition, you will be charged interest on the penalties starting the day after your return is due. The rate of interest you are charged can change every three months. If you have amounts owing from previous years, they will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.
If you owe tax and do not file your return on time, you will be charged a late-filing penalty. The penalty is 5% of your current tax year balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
If you were charged a late-filing penalty on your return for any of the previous three years your late-filing penalty for this year may be 10% of your current tax year balance