Frequently Asked Questions

A list will be provided. These are the most common (receipts required for expenses).

• Income slips
• RRSP slips
• Investment Slips
• Notice of Assessment (most recent)
• Medical Expenses
• Donations
• Child Care Expenses 
• Union or Professional Dues 
• T2202 Tuition Fees
• T2200 Employment Expenses 
• TL2 Truck Drivers (ELD printout)
• Property Tax (invoice)
• Rent Expense

We accept the following.

• Visa / Mastercard / American Express / Discover
• PayPal
• eTransfer
• Cash

With a few exceptions, generally you can update the following.

• Change in Home or Mailing address
• Banking information for direct deposit 
• Email address 
• Change in Marital status
• Change in Residency status
• Contact Phone number
• Foreign Income Verification (over $100,000 CAD)
• Sale of Personal Residence or Recreational Property (required in the year of sale)
• Change in use of Personal Residence (converted to a rental property)

Below is a guideline for when your slips should be available.

                    Organization                                    

• Employer: Last day of February (required)
• Government: Last day of February (usually)
• Post-Secondary: First month in the new year
• Continuing Education Organization: Company guideline
• Financial (Bank or Credit Union): End of March (usually)
• Investment Firm: End of March (usually)
• Private Education: Institution guideline
• Child Care Facility: Company guideline
• Others: Contact directly for guideline

One of the most commonly asked questions. The CRA may still require proof of the nature of the relationship.  Here's a list to see if you qualify as self-employed.

Work Relationship: If the employer controls the type of work, sets the hours, and assigns the tasks, you may be an employee. 

Level of Control:  If the employer controls where the work is completed, provides the training, sets the level of pay and submits your taxes, you may be an employee.  

Equipment, Tools and Workspace:  If the employer owns the equipment, tools and workspace and is responsible for the maintenance, you may be an employee.

Risk of Loss:  If the employer pays for the overhead, operational cost and assumes the risk of loss from the business, you may be an employee.

Number of Contracts:  If you are only contracted to one company throughout the year, it may be more difficult to show an independent contractor relationship.

Allowable Business Investment Loss (ABIL)

Occurs when there is an actual or deemed disposition of a share or a debt from a small business corporation to a person that you deal with at arm's length.  This can be a result of the small business corporation's inability to pay the debt (bad debt) or when it becomes insolvent or bankrupt. If the loss is more than your income for the year, the loss can be carried back up to 3 years or forward for 10 years to offset other sources of income.  If the ABIL not used after 10 years, it will become a net capital loss in the 11th year.

Capital Loss

When property (including depreciable property) is sold for a loss, a resulting capital loss is captured.  Common types of capital property include cottages, stocks, bonds, mutual fund units, land, building or equipment for use in a business.  Capital property specifically does not include the trading assets of a business, such as inventory.  The capital loss can only be used to reduce a capital gain.  If the loss cannot be used in the tax year it occurs, then it can be applied to the 3 preceding years or carried forward to any future year.

You cannot deduct the cost of the property you acquired.  You can deduct or claim what is known as depreciation and is referred to by CRA as capital cost allowance (CCA). The CCA is deducted over several years and is a different amount for each class of property. There is an accelerated investment incentive property (AIIP) available for property acquired after November 20, 2018. This incentive provides an enhanced first-year allowance for certain eligible property that will be used before 2028.  There are five main classes of CCA which are Classes 8, 10, 10.1, 54, and 55. 

If the expense was incurred to operate your business and earn money, then it is a business expense.  Personal expenses are not required to run your business. If you run a business from you're home, there are split or shared expenses that are considered both personal and business. These may include things like utilities, rent, insurance, mortgage interest, repairs and maintenance, meals and entertainment (50%), phone, internet and property taxes. Not included would be things like golf green fees, movies, streaming services, groceries, vehicle payments and home improvements not specifically for your home office. 

You can file beyond the tax filing deadline but if you have a balance owing, a penalty and interest will be assessed.  The current rates are 5% of your balance plus 1% per month to a maximum of 12 months.  If CRA has issued a formal demand for any of the three preceding years, the rates are 10% penalty plus 2% per month to a maximum of 20 months. 

• March 1, 2023 for contributions to an RRSP, a PRPP or an SPP
• May 1, 2023 for personal (balance owing is due by April 30, 2023
• June 15th, 2023 for self-employed (balance owing is due by April 30, 2023 

You are not required to file but you should in order to qualify for several refundable credits. Whether you're an individual, married or common-law, your return is used to calculate the Canada Child Benefit, Goods and Services/Harmonized Sales Tax Credit, Canada Workers Benefit and the Refundable Medical Expense Supplement.

The simple answer is YES. You will use the Social Insurance Number (SIN) provided by Service Canada or the Temporary Tax Number (TTN) and/or the Individual Tax Number (ITN) provided by CRA (Canada Revenue Agency). Your SIN number will not change until you decide to become a permanent resident of Canada.  You should file a return if you have worked in Canada or received social assistance upon your arrival. Depending on your tax situation, there are many benefits you should take advantage of as a newcomer to Canada.  

You may bring your tax information to us in January after the tax year is complete on December 31, and when you have all necessary slips, documents and receipts. Most taxpayers are not able to get their documents finalized prior to the end of January or are waiting to make more RRSP contributions in January or February. We will prepare and finalize your tax return but cannot submit it to CRA until February. CRA restricts the number of returns that tax preparers can paper-file every year to only five and if a taxpayer is eligible to file electronically, we are required to submit the return electronically. An announcement will come early in the new year from CRA advising when returns can be filed electronically. The date changes every year however, CRA usually opens electronic tax submission between the middle to the end of February. 

Effective for the 2022 tax year, CRA announced that they will no longer be sending a Notice of Assessment (NOA) through regular mail.  You will be required to provide an email address and create a "My Account" with CRA in order to access your NOA.  If you do not have an email, you may provide authorization to your tax preparer to receive the NOA on your behalf.

Your current contribution limit can be found on last year's notice of assessment from CRA.  You will find a line titled "RRSP deduction line for xxxx (tax year). Generally, you accumulate 18% per year to an annually indexed maximum. The maximum limit for 2021 is $27,830 and for 2022 it's $29,210. Your allowable contributions for 2023 will be calculated based on the income you earned in 2022 and will be added to any remaining deductions you have not claimed from this year. 

CRA will allow a $2000 over-contribution. The excess amounts are charged a 1% tax per month until the over-contribution is removed. You will not be charged if the contribution is removed in the same month the contribution was made or if the contribution was part of a qualifying group plan.

Repayments are made through new RRSP contributions or unused RRSP contributions carryforward. If you do not have an RRSP contribution or carryforward, the payment amount is included back in your income on your tax return.