Personal Tax Return Preparation
Do I have to file a return if I have no income?
- If Revenue Canada Requests you to file a return, you must file
- It would be in your best interest to file a return if you were 19 or older in 2006 you will be entitled to a GST credit.
- If you are a resident of Ontario and 16 years of age or older, you can file to receive your Ontario Sales Tax credit.
When should I file a tax return?
We highly recommend filing a tax return every year and here are a few of the reasons why:
- There are any taxes payable
- To report income for which you could contribute to an RRSP, in order to keep your RRSP deduction limit for future years up to date
- The CRA has requested you to file an income tax return
- You disposed of any capital assets such as real estate property, mutual funds or stocks
- There is a repayment of Old Age Security benefits or Employment Insurance
- You have a home buyer's repayment
- You want to apply for GST/HST credit
- You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2006, the total of your net self-employment income and pensionable employment income is more than $3,500
- You want to claim a refund.
- You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments
- You want to carry forward the unused investment tax credit on expenditures you incurred during the current year
- You receive the Guaranteed Income Supplement or Allowance benefits under the Old Age Security Program. You can usually renew your benefit simply by filing your return by April 30 If you choose not to file a return, you will have to complete a renewal application form
- If you are a resident of Ontario and 16 years of age or older , you can file to receive your Ontario Sales Tax credit
What income is considered taxable?
- Any employment income
- Motor Vehicle Allowances
- Personal Use of Company Vehicle
- Rental income
- Interest/dividend income
- Universal Child Care Tax Benefit
What income is considered not taxable?
- GST/HST Credit and the Canada Child Tax Benefit
- Compensation received from a province or territory if you were a victim of a criminal act or motor vehicle accident
- Any lottery winnings
- Most gifts and inheritances
- Most amounts received from life insurance policy
- Strike pay
- Profits from sale of principal residence
- GST/HST credit and the Canada Child Tax Benefit
What is the deadline for filing an income tax return?
The deadline for filing income tax return is April 30 of each taxation year for non-self employed individuals. If you or your spouse or common-law partner carried on a business in the taxation year, your return has to be filed on or before June 15. However, if you have a balance owing for 2006, you still have to pay the tax on or before April 30, 2007.
What if I file an income tax return after the deadline?
A return can be filed after the deadline, however if there is tax payable on the return then CRA will charge penalty and interest for filing late.
What is the deadline for an RRSP contribution?
The deadline for RRSP contribution is March 1st of each year.
What is the reporting period for an income tax return?
The period for income tax returns is from January 1st to December 31st.
What documents do I need to file an income tax return?
There can be many different tax scenarios, but some common forms required are:
- T4 slips from all employers
- T4A slips from employers
- T4A (OAS) & T4A(P) form
- T4E slips from Employment Insurance
- T4RSP income slips from Bank
- T5 slips
- T3 slips
- Medical expenses
- Charitable donations
- RRSP deduction forms from financial institution
- Child Care expense receipts