General Canadian Income Tax Topics

Posted By on December 3, 2010

Comment from: nk [Visitor]
Filing income tax deadline
The deadline for filing your Canadian income tax return is midnight April 30. If you were self-employed you have until June 30 to file your income tax but if you have a balance due it must still be paid by April 30. Now you probably are asking, “how do I know how much I owe” Well, it is easy, make an instalment payment of an approximate amount by April 30 and the balance by June30.

12/27/09 @ 16:44
Comment from: Jay [Visitor]
I was reading your comment of “Filing Income Tax Deadline”. What do you mean by “… make an instalment payment of an approximate amount ….”. Basically, I am not sure what is meant by “instalment”

Thanks,
Jay
12/27/09 @ 17:04
Comment from: nk [Visitor]
Hi Jay
When a person is employed they remit income tax from their wages. When they are self-employed, they are responsible to make that tax instalment every month,quarter, or yearly. If you now your income is high enough to generate income tax than you are responsible to pay that income tax by April 30.
12/29/09 @ 09:32
Comment from: NK [Member]
Get your refund faster by filing electronically. You can Netfile, E-file or Telefile. If you choose to Netfile you must have an access code from CRA (Canada Revenue Agency) if you don’t call CRA at 1-800-959-8281. If you choose to E-file the tax office will be registered with CRA and they will have their own access code. If you choose to Telefile simply follow the instructions via telephone.
12/29/09 @ 09:35
Comment from: Jay [Visitor]
I am trying to understand what you mean by:
“..If you choose to E-file the tax office will be registered with CRA and they will have their own access code.”

Jay
12/30/09 @ 09:18
Comment from: NK [Member]
HI Jay
What I meant is, each individual person has an access code with CRA. And each tax firm ex: H&R Block, have there own access code with CRA.
At tax time, if you are netfiling, you need to use your individual access code.
If you are Efiling, The firm, ex: H&R Block, will use their own access code.
for more information go to www.accompservices.ca, at the bottom of the home page you can sign up and we’ll send you series of tutorials and one of them will cover income tax.
nk

12/31/09 @ 09:58
Comment from: NK [Member]
If you are self-employed and registered as sole proprietorship, don’t forget to write off a portion of your vehicle expenses and a portion of your home office expense. For claiming business use of home expense you will need your household utility bills, mortgage interest, or rent paid, house insurance, and property taxes.
To claim vehicle expense you need, the total km driven in tax year and the total km driven to earn income. You also need your gas receipts, insurance, repair and maintenance costs, lease payments if you are leasing or interest on loan if you took out a loan for your vehicle. Keep a log book of where you drove and what customers you met.

03/05/10 @ 16:10
Comment from: Kelowna Bookkeeper [Member]
If you are a shareholder of a company and you make an investment into the company. Make sure the company doesn’t repay your investment more than the original amount.
Eg: if your investment is $50,000. the company should pay you back the same amount.
If you received $60,000. for your investment the extra $10,000. can become taxable income to you and be reported on your personal income tax. If you find yourself in that situation, talk to your accountant for the best way to handle that.
nk

03/12/10 @ 12:51
Comment from: NK [Member]
Why it is good to contribute every year and keep your money in RRSP.
Contributing to an RRSP is one way of reducing your annual income tax bill. For example: Say your marginal tax rate is 40%, $10,000 is sufficient to contribute to your RRSP plan and it is fully deductible from your income and reducing your taxes by up to $4,000. Plus every dollar investment income earned inside your RRSP is tax-deferred as long as it stays in the plan.
nk
08/20/10 @ 14:57
Comment from: NK [Member]
Hire family and save EI
Many small business owners know the tax benefits of paying wages to family members. However, they often forget the rules concerning employment insurance premiums (EI) on those wages. In many cases, family members would not be eligible to collect EI if they lost thei9r jobs. If they can’t collect, why pay the EI premiums? This can mean thousands of dollars in savings yearly.
NK
08/20/10 @ 15:18

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