Trusted Income Tax Firm Offering EXPERT Tax Services

• As soon as you start to think about your business, an accountant and tax expert can help you take the next steps. 
• We can discuss your business's organization, tax purposes and operations, along with target pricing and profit margins or your personal tax concerns.

• Does your accountant return your calls? 
• Do you feel comfortable asking them a question? 
• Do you feel heard? 
• With the right accountant, the answers should be a resounding "Yes!"

Whether to do tax planning by yourself or seek expert advice depends on your comfort level with tax laws, your financial situation, and the complexity of your tax affairs. Here are some considerations to help you make an informed decision:

Doing Tax Planning Yourself

Pros:

• Cost-Effective: Doing it yourself is usually cheaper than hiring a tax professional.
• Learning Opportunity: Researching and understanding tax laws can enhance your financial literacy.
• Simple Tax Situations: If your financial situation is straightforward, self-filing can be manageable and efficient.

Cons:

• Complexity: Tax laws can be complex and subject to frequent changes, making it challenging to keep up-to-date.
• Errors:  Misinterpretation or errors in tax filing can lead to penalties or missed tax-saving opportunities.
• Time-Consuming: Proper tax planning requires time, research, and careful consideration of all options.

Getting Expert Advice (Consulting a Tax Professional)

Pros:

• Expertise and Experience: Tax professionals have specialized knowledge and experience to navigate complex tax laws and regulations.
• Tax Optimization: They can identify tax-saving opportunities and help you legally minimize your tax liabilities.
• Compliance Assurance: Professionals ensure that you're compliant with all tax laws and regulations, reducing the risk of penalties.

Cons:

• Cost: Hiring a tax professional involves fees for their services.
• Dependency: Relying on professionals can sometimes result in a lack of personal understanding of your financial situation.

When to Consider Expert Advice

• Complex Financial Situation: If your financial situation is intricate due to multiple income sources, investments, or business ownership, consulting a tax professional is advisable.
• Tax Law Changes: Significant changes in tax laws or regulations may necessitate expert guidance to understand and adapt to the new rules effectively.
• Business Owners: If you own a business, especially a corporation, or if you're self-employed, consulting a tax expert is highly recommended to optimize tax strategies and compliance.
• Estate Planning: Estate planning involves complex tax implications, making it prudent to seek professional advice.
• Maximizing Tax Savings: If your goal is to maximize tax savings or benefits, a tax professional can help identify strategies tailored to your circumstances.

In summary, if your financial situation is simple and you're comfortable with tax laws, doing tax planning yourself may suffice. However, for complex situations, changes in tax laws, or the desire to optimize tax savings, consulting a tax professional is a prudent choice. Ultimately, the decision should align with your comfort level, financial goals, and desire for accuracy and efficiency.

• You should file a tax return in Canada if you live and work in Canada, or if you immigrated and settled as a resident in Canada.
• You should also file a tax return if you’re considered a factual resident of Canada, meaning you’re still considered a Canadian resident for income tax purposes. This applies to anyone who is on a temporary work assignment outside of Canada, attending school in another country, spends part of the year in another country, or is commuting for work from Canada to the U.S.
• If you’re appointed as the legal representative for someone who has died, you will have to file a final return for the deceased.
• Individuals who lived in Canada for 183 days or more during a tax year may be considered deemed residents of Canada and are subject to federal taxation. This includes international students who attend a Canadian college or university.
• Additional rules apply to non-residents of Canada, including those with rental income from Canadian properties, and seasonal workers. 
• Check with the CRA to find out what your tax obligations may be if you live in Canada temporarily or permanently, or if you leave the country.

 The due date for filing taxes in Canada:

• April 30 – the deadline for most Canadians
• June 15 – the deadline if you or your spouse/common-law partner are self-employed (but if you owe money on your taxes, you should pay your bill by April 30, or you’ll be charged interest)

• After submitting your tax return, the CRA will send you a notice of assessment (NOA) to notify you that your tax return was received. 
• An NOA contains a variety of important information, including a summary of your tax return, the amount of money you owe or are getting back as a refund, any changes that the CRA made to your return, and your RRSP deduction and contribution limits.
• It’s vital to review the document because it confirms the status of your tax return and allows you to check for any potential errors or issues that need to be addressed.

• There are several ways to control your tax bill through deductions and credits. 
• Tax deductions allow you to reduce your taxable income, and tax credits allow you to directly reduce your tax liability.
• When you make income from a job, you can often reduce your taxable income by contributing to an employer-sponsored retirement plan or your RRSP account and TFSA account.
• All of these accounts allow you to contribute pretax dollars to invest or hold in cash for saving or for certain expenses. As a result, these contributions lower your taxable income and save you money on your tax bill.

• The Canada Revenue Agency (CRA) has a variety of deductions that Canadians can use to reduce their taxable income and, therefore, their tax bill. 
• Since your taxable income determines your federal and provincial tax rate, lowering that figure often means paying less in taxes overall.
• There are two main sets of deductions used to calculate your taxable income. The first set deducts from your total income to get your net income. 
• Common deductions from this set include moving expenses, professional dues, support payments and eligible child-care expenses.
• Once you arrive at your net income, you can make a second set of deductions. 
• They include things like northern residents deductions and a Canadian Forces personnel deduction. 
• Once you subtract any applicable deductions from your net income, you’ll have your taxable income.

• Tax credits are incentives offered by federal, provincial, and territorial governments of Canada that directly reduce the amount of tax you owe. Tax credits are different from tax deductions, which reduce the amount of income that can be taxed in the first place. 
• There are two types of tax credits available to you on a federal and provincial level: refundable and non-refundable.
• Refundable tax credits will be given to you no matter how little income tax you owe. Even if you owe no income tax at all, you can still claim a credit for its established amount.
• Non-refundable tax credits, on the other hand, can only help cancel out your payable taxes. If you don’t owe any taxes, or your total non-refundable tax credits exceed what you owe, you will not be credited any leftover amounts.

• Moving expenses are only tax-deductible under very specific circumstances. 
• You can only claim them if your move was related to your job or business. 
• In some cases, a student who moved to pursue post-secondary education may also deduct moving expenses from any scholarships or bursaries (which would be reported as income) they received.

• To receive the Canada Workers Benefit, you need to be a Canadian resident aged 19 or older on December 31 of the year you’re filing. 
• You also must be paying taxes and earning an income that’s below the required net income set for your province or territory of residence.
• You’re not eligible if you are a full-time student at a designated educational institution (unless you have an eligible dependent) or an officer or servant of another country (a diplomat, for example), or if you’re a family member or employee of that person. 
• You also don’t qualify if you’ve been incarcerated for at least 90 days during the year. 

• For tax purposes, the Canada Revenue Agency (CRA) uses terms like enduring ties and significant residential ties to figure out your province or territory of residence. 
• Granted, this is not so cut-and-dried, but it makes sense. That’s because factors include not only where you live, but where your spouse and dependents live and where you have other important ties, such as bank accounts, car registration, and personal property. 
• So, as odd as it may seem, moving during the year or working in another province or territory does not affect your province of residence when you file taxes.
• If you moved—and subsequently changed all of your significant ties by December 31—that would have an impact. Add an answer to this item.

• If the CRA reassesses your return and discovers you left out a significant portion of your income, you will have to pay what you owe, plus interest and possibly penalties. 

• 10% of the amount of unreported income in the year. 
• 50% of the difference between the understated tax payable (and certain overstated refundable tax credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report. Add an answer to this item.

• The province or territory where you live on December 31 determines your net tax owing for tax instalments. 

             All residents (except Quebec): If your net tax owing is more than $3,000.

             Quebec residents: If your net tax owing is more than $1,800.

• If you received an instalment reminder in 2023, but your 2023 net tax owing is $3,000 or less ($1,800 or less for Quebec), you do not have to pay tax instalments for 2023.