Help with Income Tax Questions
Income Tax Services for You and Your Business
What are the deadlines for filing tax returns?
The deadline for filing T1 Personal Income Tax returns is April 30, unless it falls on a weekend, in which case the deadline is midnight the following Monday.
The deadline for filing T2 Corporate and Business Tax returns is within six months of the corporation’s year-end. The deadline for a small business that is not incorporated is June 15, unless it falls on a weekend, in which case the deadline is midnight the following Monday, and would be submitted on your T1 tax form.
How does "Instant Refund" work?
Do you help businesses with their Corporate taxes?
Absolutely! Running any business requires you to wear many hats. Let Taxman help your small business by preparing your T2 return. Need help with calculating your business-use-of-home expenses on part 7 of Form T2125? Can you use additional support?
Taxman files your HST returns electronically. HST returns are usually done quarterly and you want to correctly calculate your HST collected, as well as your Input Tax Credits (ITCs) paid. Taxman also provides payroll services, ensuring employees are compensated accurately and deductions are properly calculated, along with year-end T4s and Records of Employment (ROEs).
Is it complicated to switch tax preparation specialists?
Switching is easy. Bring to Taxman your personal identification, all T4 slips, RRSP contribution receipts, child care receipts, receipts for moving, any receipts for donations to registered charities (e.g. Church receipts), and any other receipts (to determine whether they are eligible to claim as an expense) and the transition will be painless!
Can I deduct childcare expenses?
Child care expenses are amounts you paid to have someone look after your dependents so that you AND your partner can:
- Earn income from employment;
- Carry on a business either alone or as an active partner;
- Attend school under the conditions identified under Educational program; or
- Carry on research or similar work, for which you or the other person received a grant.
YOU BOTH HAVE TO HAVE EARNED INCOME and the child must have lived with you or the other person when the expense was incurred for the expense to qualify. Usually, you can only deduct payments for services provided in Canada by a Canadian resident.
NOTE: Childcare expenses are generally only deductible from the income of the ‘Lower-Income’ spouse or partner, but there are exceptions to the rule.
Can I deduct my interest expense?
You may deduct interest expenses on monies borrowed to earn interest, such as dividend or royalty income, interest earning bonds, and dividend-paying shares/stock. In most cases, if you are required to have a home office, your mortgage interest becomes deductible.
Can I deduct moving expenses?
If you moved for your post-secondary studies and you are a full-time student, you may be able to claim moving expenses. However, you can only deduct these expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants that is required to be included in your income.
If you moved to work, including summer employment, or to run a business, you can also claim moving expenses. However you can only deduct these expenses from the income you earned at the new work location. To qualify, your new home must be at least 40 kilometres closer to your new school or work location. If the income at he new location is not enough to fully deduct your move, the residual moving expenses are carried forward to the next year.
My disabled relative lives with me. What extra tax credits do I qualify for?
If, at any time in the tax year, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim your dependent’s full Disability Credit, and most times, an extra Family Caregiver amount, for EACH dependent.
Each dependant must have been 18 years of age or older and dependent on you due to an impairment in physical or mental functions. If the dependant is your or your spouse’s or common-law partner’s parent or grandparent, he or she had to have been born in 1949 or earlier.
My employer asks me to travel for my job. What can I claim?
If your employer requires you to go here and there for work related purposes, have him/her give you a completed form (T2200) stating such; this could potentially allow you to claim your vehicle, food, parking, lodging, supplies for work, your cell phone, etc.
Can I deduct legal fees?
You can deduct your expenses in any of the following situations:
- You paid fees (including any related accounting fees) for advice or assistance to respond to CRA when your income, deductions, or credits for a year or to object to or appeal an assessment or decision under the Income Tax Act, the Unemployment Insurance Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan.
- You paid fees to collect (or establish a right to collect) a retiring allowance or pension benefit. However, you can only claim up to the retiring allowance or pension income you received in the year, minus any part of these amounts transferred to a registered retirement savings plan or registered pension plan. You can carry forward, for up to seven years, legal fees you cannot claim in the year.
You incurred certain fees to try to make child support payments non-taxable. Fees relating to support payments that your current or former spouse or common-law partner, or the natural parent of your child paid to you must be claimed on line 221. You cannot claim legal fees you incurred to get a separation or divorce or to establish custody of or visitation arrangements for a child.
What's new with the Volunteer firefighters' amount?
You can claim $3,000 for the volunteer firefighters’ amount (VFA) or the search and rescue volunteers’ amount (SRVA), but not both, if you meet the following conditions:
- you were a volunteer firefighter or a search and rescue volunteer during the year; and
- you completed at least 200 hours of eligible volunteer firefighting services or eligible search and rescue volunteer services in the year.
Can you help with tax planning?
Preparation and tax planning are in our DNA! Taxman serves both individuals and companies with tax planning to save.
Will you have multiple income streams in retirement? For example, many people who are approaching retirement age or are senior citizens have accumulated savings through their own RRSP or from their employer. RRSPs are great for accumulating retirement funds and provide a tax deduction for the funds when you deposit. However, eventually you do have to pay taxes when you withdraw funds from the RRSP account (10% for the first $5000). The law requires that you convert your RRSPs into a RRIF by the age of 71. Your access to the funds may differ depending on whether they are locked-in. If you had RRSPs through an employer they are usually “locked in”. Even though these pension plans are set up so that you cannot withdraw all of the money at once, most provinces allow you to withdraw a percentage of the whole amount on a one-time basis for different reasons. Nova Scotia offers provisions for financial hardship, shortened life expectancy, or if the value of the pension plan is low. There are also exceptions for excess funds or if you cease to be a resident. The funds must be in a LIF (Life Income Fund) or LIRA (Locked-in Retirement Account). See the following Government of Nova Scotia page for more detail on locked in funds and come see Taxman!
Currently, the laws mandated by the Federal Government in Ottawa require that we also withdraw a minimum percentage of the funds from a Registered Retirement Income Fund that increases as we grow older. The annual (and taxable) withdrawals start at 5.28% at age 71 (for RRIFs set up after 1992), increase to 6.82% at age 80, 11.92% at 90 and 20% at age 95 plus. These RRIF withdrawals are fully taxable income like salaried income or interest income. What tax implications do you face?