2019 Winter Tax Newsletter

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 admin@schofieldcpa.ca

 

Thank you for your business, and the trust and confidence you have placed in us.

- Sandy

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

 

  • Employment Expenses
  • Carrying Charges & Deductible Interest
  • Childcare Expenses
  • Legal Fees
  • Moving Expenses
  • Student Loan Interest

 

 

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*

Taxable Income

Ordinary Income

Capital Gains

Eligible Dividends

Small Business Dividends

Up to $44, 740

20.05%

10.03%

-6.86%

9.24%

$43, 096 - $47, 630

24.15%

12.08%

-1.20%

13.95%

$47, 630 - $77, 313

29.65%

14.83%

6.39%

20.23%

$77, 313 - $87, 813

31.48%

15.74%

8.92%

22.38%

$87, 813 - $91, 101

33.89%

16.95%

12.24%

25.16%

$91, 101 - $95, 259

37.91%

18.95%

17.79%

29.78%

$95, 259 - $147, 667

43.41%

21.70%

25.38%

36.10%

$147, 667 - $150, 000

46.41%

23.20%

29.52%

37.90%

$150, 000 - $210, 371

47.97%

23.98%

31.67%

41.35%

$210, 371 - $220, 000

51.97%

25.98%

37.19%

45.95%

Over $220, 000

53.53%

26.76%

39.34%

47.74%

* 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!

Our Services

 

  The world of self-employment and business can be tricky.  We can help.

 

Year-round services include:

 

  • Business and Personal Taxes
  • Accounting and Bookkeeping
  • Payroll preparation – including source deductions, WSIB, EHT, etc.
  • Government remittances, including HST, Payroll, T4s, T5s, etc.
  • QuickBooks Certified ProAdvisor (Online & Desktop)

 

  For more information, just ask. We'll be happy to help.

Credit Score

 

  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

 

 

OAS Clawback

 

  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

 

  • RRSP Contributions
  • Union & Professional Dues
  • Charitable Donations
  • Medical Expenses
  • Healthy Homes Renovation
  • Child Care/Fitness/Art Credits
  • Property Taxes/Rent
  • Moving Expenses*
  • T2202 Tuition Receipts
  • Student Loan Interest
  • Political Contributions
  • Alimony/Child Support Paid
  • Carrying Charges & Interest
  • Expense
  • Disability Credit
  • Legal Expenses
  • Public Transit Passes (to May 31, 2017)
  • Installments Paid

 

Personal Information

 

  • Birth dates & SIN #’s. - self, spouse, dependents RRSP Limits (from 2017 Assessment Notice)
  • Home Buyers Plan Repayment Schedule
  • Direct Deposit Information
  • Foreign Property over $100,000 in value (includes bank accounts, investments and real property)
  • Did you sell property/stock?
  • Did you move?

 

 

Business, Self-Employed, Comm. Sales

 

  • Employment Expenses*
  • T2200 – Employment Expenses
  • TL2 Meals and Lodging*
  • Home Expenses*
  • Office Expenses*
  • Automobile Expenses*
  • Rental Properties*

 

 

 

Receipts and Information Slips

 

  • T4 Employment Income
  • T4A Other Income
  • T4E Employment Insurance
  • T4A (OAS) Old Age Security
  • T4AP Pension Income
  • T4RSP RRSP Withdrawals
  • T4RRIF RRIF Withdrawals
  • T5 Interest and Dividends
  • T3 Investments, Gains, etc.
  • T5007 WSIB Benefits
  • Social Assistance Benefits
  • Alimony/Child Support
  • Capital Gains/Losses

 

Sandra Schofield, CPA

601 Liverpool Road

Pickering, Ontario

L1W 1R1

About Us

Services

T: 905 831 5335

F: 905 831 8778

 Copyright © 2020 Sandra B. Schofield, CPA. All rights reserved.

2019 Winter Tax Newsletter
2019 Winter Tax Newsletter
2019 Winter Tax Newsletter
2019 Winter Tax Newsletter