Welcome to our newsletter with some topics and opportunities regarding your upcoming tax return. We hope this info will encourage you to consider and discuss your return with us, so that we can help you get the best outcome for your 2019 taxes.
Since we can’t cover all the tax related issues and changes in this newsletter, please remember, we are always happy to answer your questions or provide further information on any tax issue, so feel free to call or email us at 905-831-5335 or firstname.lastname@example.org
Thank you for your business, and the trust and confidence you have placed in us.
Important Dates for 2019
MARCH 1 – T4/T5 Filing Due Date
MARCH 1– Last day to contribute to your own RRSP or spousal RRSP for the 2019
MAR 16 / JUNE 15 / SEPT 15 / DEC 15 – Personal Income Tax Instalments due for the 2019 taxes
MAR 31 – T3 Trust Return Due Date
APRIL 30 – Personal income tax filing due date for individuals who do not earn self-employment income
APRIL 30 – Tax balance due for all individuals
JUNE 15 – Last day to file 2019 income tax returns for self-employed individuals (note the payment of tax owing is still due April 30th)
For assistance with additional tax due dates, such as for GST/HST and payroll remittances and installments or for corporations with non-fiscal year ends please contact us and we’ll be happy to help.
Expenses You May Be Able to Deduct
Does your business look like a hobby?
CRA does not expect every new business to be profitable in their first few years. However, there must be a reasonable expectation of profit. Losses year after year will likely mean you will be asked questions by CRA to determine you are not in business with the purpose of creating losses.
Basic Personal Exemption
Claiming to use your vehicle for business or employment does require you to keep a mileage log, and CRA has been requesting these more often. MileIQ is an app for your phone which will track your trips using the GPS on your phone. https://mileiq.com/
2019 Income Tax Package
We will be emailing a tax package which will include the forms required to complete your tax return for 2019 based on your previous returns. We will also have forms available to help organize rental income, moving, self-employment and auto expenses and will be happy to send these to you, just let us know or check our website.
2020 Combined Federal & Ontario Marginal Tax Rates*
Small Business Dividends
Up to $44, 740
$43, 096 - $47, 630
$47, 630 - $77, 313
$77, 313 - $87, 813
$87, 813 - $91, 101
$91, 101 - $95, 259
$95, 259 - $147, 667
$147, 667 - $150, 000
$150, 000 - $210, 371
$210, 371 - $220, 000
Over $220, 000
* to be used as a guideline only, please contact us if you need more specific information
TFSA Contribution Limits
On January 1st, 2020 the TFSA Contribution Limit remains unchanged from 2019 at $6,000.00.
Reporting Foreign Property
If you have foreign investments/property costing more than $100,000, remember to let us know. There is a separate form to be filed.
After April 30th
Did you know on average 5% of all tax returns are questioned by CRA. What this means is that even after they’ve been filed, we are still working for you.
As your representative, we are usually the initial point of contact for CRA, which means any questions before or after assessment come to us first. Often these queries are answered and resolved immediately, as we scan and have copies of all your documentation on file.
In addition, we actively monitor your tax account to ensure that any adjustments made are correct.
We are available year-round to answer your questions or requests in person, by telephone or by email.
We also enjoy the occasional drop in just to say hello!
The world of self-employment and business can be tricky. We can help.
Year-round services include:
For more information, just ask. We'll be happy to help.
Keeping track of your own credit score is a good habit and can alert you to unusual activity on your accounts. Borrowwell (www.borrowwell.com) is a free service which provides you with your credit score and more importantly, checking through them does not affect your score.
RRSP Withdrawal and Tax withheld
Money withdrawn from your RRSP is considered income and although some tax was withheld, the amount is usually not sufficient to cover your final tax liability. The amounts required to be withheld are:
10% on amounts up to $5,000
20% on amounts of $5,000 to $15,000
30% on amounts of $15,000 and over
If you have lived in Canada for 40 years after the age of 18, you will generally receive a full OAS pension.
The clawback means that high income earners will be required to repay some or all of their OAS pension. Starting at $77,510 some of the OAS will be clawed back and if your income is over $125,696 there is a full clawback.
Income splitting either of your pension, CPP or both may avoid this additional tax.
Please note that the information provided here is for educational purposes only; and although every effort is made to ensure its accuracy, we accept no liability for any errors or omissions.
Also, as it’s not possible to cover all situations and exceptions; individual circumstances should always be discussed with a qualified professional.
Please call or email if you would like any further information or have any questions!
Personal Tax Organizer
This is a list of some of the most common forms and information required to complete a personal tax return and should help make sure you take advantage of all eligible credits.
If you are unsure if an item should be included or is deductible; please call, we’ll be happy to advise you.
Please be kind to your accountant and get your info in early! In 2018, we prepared over 1,800 tax returns.
Deductions and Credits
Business, Self-Employed, Comm. Sales
Receipts and Information Slips