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Here are some FAQs about income tax returns

Here are answers to some commonly asked questions about income tax returns

1. What income do I need to report on my income tax return?

All income is taxable. You’ll need to report all income on your tax return (also known as Income Tax and Benefit Return) and calculate how much tax you owe.

Income that you must report to the CRA (Canada Revenue Agency) includes:

  • Part-time and self-generated income
  • Employment income earned both inside and outside of Canada
  • Income from rental property or renting out a section of your house
  • Investments (e.g. interest, dividends, capital gains)
  • Being self-employed (e.g. a home business)
  • Your pension
  • Income from more than one job

2. Do I qualify for tax credits and benefits?

You may qualify for the following:

  • Ontario Children’s Activity Tax Credit
  • Ontario Political Contribution Tax Credit
  • Healthy Homes Renovation Tax Credit
  • Ontario Trillium Benefit
  • Ontario Senior Homeowners’ Property Tax Grant
  • medical expenses, caregiver amounts, disability amounts, etc.

All you need to do is file a tax return and fill in three forms ON 479, ON-BEN and ON 428.

If you are submitting a paper tax return form, complete and mail the forms below when you mail your tax return.

Yet, if you are submitting your tax return online, the majority of accounting and tax return software will automatically ask you questions related to tax credits and benefits.

3. What if I have no income from last year, do I still file a tax return?

It’s important to file your taxes even if you have no earnings.

Even if you don’t have an income from the previous year, it’s beneficial to file your taxes because you may be eligible for various government benefits such as, the Ontario Trillium Benefit, the Ontario Child Benefit and Healthy Smiles Ontario.

However, please note two cases which it is mandatory to file an income tax return even though you have no earnings from the previous year: 1. if you owe taxes to the government and 2. if the CRA sent you a request in the mail to file your taxes.

4. Will I receive a refund?

The CRA will process your tax return and mail you a notice of assessment. If you qualify for a refund, you’ll get money back.

How much money you receive is contingent on a number of factors: your location, age, the size of your family, how much money you make and your expenses. Not everyone qualifies for a refund.

If you owe the CRA money, you will receive a letter in the mail stating that you need to pay by April 30. You can pay online, at your bank, or by mail with a cheque or money order.

5. From where do I get a tax return form?

To get a tax return form, you can either:

  • Download one from the CRA website
  • Visit your local post office or postal outlet
  • Visit a Service Canada office
  • Call 1-800-959-8281

The tax return forms are available at the above locations between February and early May.

6. Can I get help completing my tax return?

You may be eligible to get help from a free tax preparation clinic if you have a modest income and a simple tax situation. These tax clinics are offered through the Community Volunteer Income Tax.

Remember to bring your tax information slips and receipts such as old age security (OAS), employment insurance (EI) and Canada pension plan (CPP) tax slips. Volunteers will need them to prepare your income tax.

If you do not qualify for free tax services, you can get help from an accountant or a tax preparation company.

Our professional chartered accountants are committed to assisting you with your tax return and are highly qualified at finding the best tax credits and deductions that will maximize your refund from the government. Here is some more information about our professional accounting services. If you have any questions about tax returns or any accounting related inquiries, please contact S & P Accounting Services.

Here is an infographic which provides answers to some commonly asked questions about income tax returns. 

Income tax return FAQs

Income tax return infographic

S&P Accounting Services LLP
2727 Steeles Ave. W. Suite 300
North York, ON, M3J 3G9
www.spaccountingservices.ca

Disclaimer: We strive to ensure all information on our site is accurate and up to date. However, the contents of the site are naturally subject to change from time to time. That means, we can’t always guarantee the accuracy of all information on the site. YOU ARE RESPONSIBLE FOR CHECKING THE ACCURACY OF RELEVANT FACTS AND OPINIONS GIVEN ON THE SITE BEFORE ENTERING INTO ANY COMMITMENT BASED UPON THEM.

This post was written by Biz Source, a content creation company and is for illustration purposes only. For professional advice, please contact S & P Accounting Services.

We offer bookkeeping services in the GTA

We offer bookkeeping services in the GTA

Whether you have a start-up business or a well-established business, S&P Accounting could provide you with professional bookkeeping services to meet your business needs. We offer bookkeeping services to clients in the GTA which includes Toronto, North York, Thornhill, Vaughan and Richmond Hill.

We provide a full range of bookkeeping services 

Our bookkeeping services include:

  1. Books set-up,
  2. Data entry, banking, and reporting,
  3. Payroll setup, processing, monthly remittances and yearly tax reporting,
  4. HST, WSIB and Employer health tax filings….and more.

Our bookkeeping services are highly professional

In Canada, bookkeeping, unlike the accounting profession, is completely unregulated. This means that when it comes to bookkeeping, there are no criteria for educational credentials or for professional conduct. Virtually anybody with little to no education or training could call themselves a bookkeeper. Unfortunately, using the service of an unqualified bookkeeper, has had detrimental consequences for businesses. For instance, according to Edward Nagel, a forensic accountant,  unethical bookkeepers could create “large-scale misappropriation — from fictitious vendors and ghost employees to cheque fraud, and everything in between. And, since many bookkeepers and their employees often have no formal fraud-prevention training, this increases the likelihood of a fraud going undetected for months, if not years. ” Mr. Nagel proceeds to say that it’s important to stay clear of bookkeepers that profess to be knowledgeable in the profession, yet refuse to answer straight-forward accounting questions. That’s definitely a red flag!

At S & P Accounting Services, our Chartered Accountants perform the bookkeeping services.  This means that our high level of educational, professional and ethical standards ensures that our clients receive top level bookkeeping services. As our client, you could feel confident knowing that our Chartered Accountants will ensure that your books are properly maintained. We will accurately and proficiently perform all your bookkeeping services, as well as give you advice and answer any questions that you may have about your business’ finances. Our qualified bookkeepers are able to customize a bookkeeping solution around your financial and business needs.

We offer bookkeeping services in both QuickBooks and Simply Accounting, and we offer these services at your office or ours, whatever you prefer. Our office is conveniently located in the the GTA.

Our bookkeeping services are affordable and efficient

Our bookkeeping services are an affordable and efficient way to get small and large sized businesses up-to-date with their bookkeeping records. We regularly look over your file and help ensure that your books are properly and accurately maintained. By providing you with professional bookkeeping services, you will have more time to focus on what’s really important -running your business.

If you require additional consultation or a have any bookkeeping inquires, please do not hesitate to contact us. We serve clients in Toronto, North York, Vaughan, Thornhill, Richmond Hill, and all other GTA cities.

Polina Presman, CPA, CA

T- 416-371- 6017
F- 416-667-0404

Shani Marzin, CPA, CA

T- 416-731-9031
F- 416-667-0404

S&P Accounting Services LLP
2727 Steeles Ave. W. Suite 300
North York, ON, M3J 3G9
www.spaccountingservices.ca

Practical Information from North York Accountants

Useful information from North York Accountants

If you are living in North York, here is a list of CRA contact information (addresses, phone numbers) that will help you navigate your taxes more effectively.

Mailing your T1 form

If you are an Ontario resident living in either North York, Toronto Centre, Toronto East, Toronto North, Toronto West, Barrie, Sudbury and these other cities, mail your paper T1 to the following address:

Canada Revenue Agency

Tax Centre

1050 Notre Dame Avenue

Sudbury ON  P3A 5C2

Non-residents should mail their T1 return to the following address:

International and Ottawa Tax Services Office

Post Office Box 9769, Station T

Ottawa ON  K1G 3Y4

Canada

Where is the CRA drop box located in North York?

If you would like to drop off payments or correspondences, please visit the Toronto North -Barrie Tax Services Office:

Office/mailing address:

5001 Yonge Street

Toronto ON  M2N 6R9

Fax: 416-512-2558

If you have any tax inquires, you may call CRA. You may also call S &P Accounting Services. We are professional accountants with a firm in North York and will happily respond to any questions and/or requests that you have within 24 hours.

Please note that The Toronto North-Barrie Tax Services Office has a drop box only. Effective October 1, 2013, payment and inquiry services are no longer available at the Toronto-North Barrie Tax Services Office. An external drop box is available for correspondence and payments.

Drop boxes and late payment penalties

Here is an important note about the drop boxes which could help you file your return on time and avoid late payment penalties.

Drop boxes are typically emptied of their contents twice daily (more frequently during the personal tax filing season). The contents are stamped by the CRA mail operations the same day they are received. For the first clearance each morning, items are date stamped with the previous business day’s date.

So an important tax tip is even though you cannot pay your full balance owing on or before the due date (eg.,  April 30, 2017), you can avoid the late filing penalty by filing your return on time.  For instance, if you owed tax for 2016 and did not file your return for 2016 on time, CRA charged you a late-filing penalty. The penalty was 5% of your 2016 balance owing, plus 1% of your balance owing for each full month your return was late, to a maximum of 12 months.

If CRA charged a late-filing penalty on your return for 2013, 2014, or 2015 your late-filing penalty for 2016 may be 10% of your 2016 balance owing, plus 2% of your 2016 balance owing for each full month your return is late, to a maximum of 20 months.

Ensure your taxes are always filed on time

Forget about filing deadlines because from now on we will make sure that your taxes are always on time.

As professional Chartered Accountants, we are committed to excellent service so you could rest assured that we will file your taxes on time.
Our accounting firm is located in North York and we happily serve clients in North York, Toronto, Thornhill, Vaughan, Richmond Hill, Mississauga and other cities in the GTA.

Learn more about our accounting and bookkeeping services here.

Disclaimer:
We strive to ensure all information on our site is accurate and up to date. However, the contents of the site are naturally subject to change from time to time. That means, we can’t always guarantee the accuracy of all information on the site. YOU ARE RESPONSIBLE FOR CHECKING THE ACCURACY OF RELEVANT FACTS AND OPINIONS GIVEN ON THE SITE BEFORE ENTERING INTO ANY COMMITMENT BASED UPON THEM.

A Chartered Accountant advises parents on how children could become more financially literate

As a Chartered Accountant, many of my clients ask me how they could help their children become more financially literate.

As a Chartered Accountant and parent, I could understand why they are concerned. Being financially literate is a life skill that children will carry with them even after high school. They need this knowledge in order to responsibly file their tax returns, help pay off debts and credit cards and save for their future. Lacking financial skills could definitely lead to financial troubles.

The good news is there are many different initiatives across Ontario that are helping children and youth gain money skills. For instance, the Ontario Ministry of Education is engaged in a pilot project that is helping revamp the Grade 10 careers courses and is laying the groundwork for financial literacy to become part of the curriculum for the fall of 2018.

Also, findings released this week by the Organisation for Economic Cooperation and Development (OCED) reveal that Canadian youth are among the top global performancers in financial literacy. Canada came second in financial literacy out of 15 countries that participated in the Programme for International Student Assessment (PISA) survey. Eighty-seven per cent of about 3,400 Canadian students who participated in the survey, demonstrated at least a baseline level of financial literacy and Twenty-two per cent of Canadian students demonstrated advanced levels of financial literacy, well above the OECD average.

What could you as parents do to help your children gain money skills?

I recommend talking with your children about money early on and doing so as often as possible. In fact, the PISA survey revealed that Canadian students who discussed money issues with their parents tended to score higher with those discussing money issues at home once or twice a week scoring the highest.

As a Chartered Accountant, from my experience, it is also beneficial for parents to encourage their youth to start handling money early on that way the youth gain greater practical knowledge on how to budget, save and spend wisely. In fact, the PISA survey found that Canadian teenagers who held occasional jobs like gardening and babysitting had, on average  the highest financial scores. Children and youth learn about money by doing. Here is an example of about 100 summer jobs for teens, one of them might peak your children’s interest.

What unbiased resources are out there that could help us parents discuss money matters with our children?

Chartered Professional Accountants Canada (CPA) offers free unbiased financial literacy sessions to the general public. The program is run by Chartered Accountants that volunteer their time and expertise and is available to adults, seniors, workplace, new Canadians, schools, post-secondary students, small and medium businesses and entrepreneurs. For instance, some of the topics that parents could learn at the sessions are how to teach their kids to be money-smart and how to become good financial role models for their children. If you are interested, you may request  a session here.

Another informative website is Teaching Children About Money which offers many programs and activities for youth and children. Some topics discussed are:  “What to consider when deciding to give an allowance: how much to give, how often to give and if it should be earned” as well as “What to teach your preschool, school-aged, preteen and teenaged children about money management.”

There is a also a Financial Literacy Database for Canadian parents which offers some educational and fun resources such as how to teach children about money management in a fun and interactive way, how parents could save for their children’s education and an e-book on how children could learn to be smart spenders.

Also, besides teaching children and youth about the value and importance of money and helping them take on seasonal jobs early on, it is important for parents to attend financial literacy workshops. Such workshops will give parents more confidence in their knowledge and skills about money, help them be better role models when it comes to handling money and make them feel more comfortable to initiate such conversations at the dinner table.

If you require additional consultation or a tax planning strategy, please do not hesitate to contact:

Polina Presman, CPA, CA

T- 416-371- 6017
F- 416-667-0404

Shani Marzin, CPA, CA

T- 416-731-9031
F- 416-667-0404

S&P Accounting Services LLP
2727 Steeles Ave. W. Suite 300
North York, ON, M3J 3G9
www.spaccountingservices.ca

Sources:

https://www.thestar.com/news/gta/2017/03/23/ontario-launches-plan-to-teach-high-school-kids-financial-skills.html

https://www.cpacanada.ca/en/the-cpa-profession/financial-literacy/financial-literacy-program-faqs

http://theprovince.com/opinion/op-ed/opinion-canadian-students-among-top-global-performers-in-financial-literacy

https://itools-ioutils.fcac-acfc.gc.ca/RDCV-BRVC/sear-rech-eng.aspx

https://www.thepennyhoarder.com/jobs-making-money/100-summer-jobs-for-teens/

https://www.canada.ca/en/financial-consumer-agency/services/teaching-children-money.html