The Tax Preparation Blog

Posts Tagged ‘canada’

Question: What is the best website to learn how to prepare your own Income Tax In Canada?

Is there some good websites out there to help with Canadian income tax preparation?

Answer: Yes, the CRA tutorial is excellent. Thank you for trying to learn.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/lrn-tx/menu-eng.html

Inter Pipeline Fund Announces April 2011 Cash Distribution

CALGARY, ALBERTA–(Marketwire – April 6, 2011) – Inter Pipeline Fund (“Inter Pipeline”) (TSX:IPL.UN) announced today the declaration of a cash distribution of $0.08 per unit for April 2011. This distribution will be paid on or about May 16 th , 2011 to unitholders of record on April 25 th , 2011.

Pay No Income Tax & Claim ALL withheld back

Question: Alright, so if I claim RRSP’s ($5000), tuition ($1400) and my personal deduction, ($9600) in Canada….?

is it the same percent that I get back from all of them? 15%. I made around $40000 this year, so $1138 of that is taxed at 22%, the rest 15%. Also do these deductions just apply to my federal income tax or my provincial as well?

Answer: There is a separate provincial non-refundable tax credit. The easiest way to figure this out is to look at the actual Schedule 1 and provincial tax calculation.

Scott Burns: The old model is outdated, failing; time for America 2.0

My recent column suggesting Congress should make a down payment on restoring our trust by returning the excess employment taxes workers have paid since 1984 hit a nerve. Reader mail carried messages of frustration and anger – a sense of futility about change. Responses to a follow-up column on the size of our financial problem brought questions: OK, readers asked, what should be done?

Go! Tax Canada

Question: tax return in canada?

i worked for a year in canada on a working holiday visa, i will soon be going back home to europe – how do i go about getting a tax return?
i know there are companies that can do it, but one quoted me 10% as their fee, and having estimated that i may be entitled to $2000 return, that would mean im paying them $200 which seems a bit of a rip off.

Answer: First, determine if you are considered a resident or a non-resident of Canada. Once you’ve figured that out, you’ll be able to use either the General Income Tax Return, or the Return for non-residents and deemed residents.

http://www.cra-arc.gc.ca/formspubs/t1general/menu-e.html

http://www.cra-arc.gc.ca/E/pub/tg/5013-g/5013-g-01-06e.html

The International Tax Centre might be able to help you in determining your status, if you’re stuck. They are at:

1-800-267-5177

Top Things Families Should Know About Taxes

OTTAWA, ONTARIO–(Marketwire – 03/08/11) – The Canada Revenue Agency (CRA) has a number of benefits, credits, and services to help families meet their financial obligations throughout the year, reduce the amount they owe at tax time, and provide them with convenient online options. Read on to see if the following tips can help you or your family. 1. Child benefit amounts: Use our online benefit …

9.12 DC TEA PARTY – MARCH FOOTAGE WITH INTERVIEWS

Question: In Canada how does Revenue Canada address a waiter’s tips? What are the dangers involved in declaring some?

I’ve been working as a server for many years now, and have never declared any of my tips in my tax returns. Most people I know in the industry claim something, but very little (usually a paltry amount representing 10-15% of their salary, which is NOWHERE near how much they actually get). That always seemed silly to me, so I decided years ago that I wouldn’t claim any, and hope not to have my name drawn from a hat for an audit.

I’ve heard that RC adheres to a general guideline that if you’re a server, 15% of your income comes from your tips – is this true? Also, if I start claiming now (within the above 15% amount, or more) will my profile get “flagged” and will they start looking into my past to get undeclared income from years past?

The reason I ask is I want to buy a house, and maximize my income (to raise my mortgage acceptance level) without getting into trouble.

Does anyone KNOW FOR SURE about these things? My house may depend on it.

Answer: If you are a waiter, waitress, hairdresser etc (any profession that makes tips) the government knows you make them. Make a claim at line 104 for tips. After a while, when seeing that you have worked as a serving person for a number of years and have not claimed tips, you will be audited. It could be a year, three years, five years down the road. They can audit anything up to 7 years back.
You will not be “flagged” now if you start claiming, but depending on how long you have not claimed, your name will come up soon for audit.
I can tell you, it will happen.
Start claiming those tips now.
If you are really concerned that they may go back and audit you on previous years and then you will have interest and penalty charges applied to any money owing, you can make a voluntary disclosure and state that you didn’t realize that you needed to claim the “paltry” tips you have been making and since this is the first year you have been making really good tips and are claiming it, you wanted to be upfront and claim the “piddly” amounts of tips from previous years.
The tips will be “low” amounts so it shouldn’t change much.

Tax tips for seniors

You can get credit for turning 65 when you file your income tax; low-cost tax clinics available.

Tax Tips + FAQ | Deceased-Tax-Returns-Canada.com (Toronto Services)

Question: Tax Question – Ontario, Canada?

Hi All,

How much tax approximately are you supposed to pay in total a year, when earning $40,000 income a year as an employee?

I understadn it will not be a precise number, I just need a rough estimate.

THANKS!

Answer: It will be:
$6800 in taxes
$1980 in CPP
$ 720 in EI

on 40,000 of income thats EI and CPP eligable (which is 98% of most people)

Hertz Reports Significant Year-Over-Year Improvement

PARK RIDGE, NJ–(Marketwire – 02/22/11) – Hertz Global Holdings, Inc. (NYSE: HTZ – News ) — Worldwide car rental revenues for the quarter up 5.8%, year-over-year, with U.S. car rental revenues up 6.1%. — Adjusted pre-tax income(1) for the fourth quarter up 73.5% over the prior year period, representing a 140 basis point margin improvement; GAAP pre-tax loss for the fourth quarter of $7.8 …

Canadian personal income tax – tax deduction vs. tax credit