Income Tax Preparation - Guide
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Transcript of Income Tax Preparation - Guide
Income Tax season is coming upon us and to most of us it is time to get some $$$ back. However, most of us don't
really know what we are entitled to and what we can really get back because we either take our taxes to a
company that only cares how much they make in fees, or by ourselves and we don't really utilize the Income Tax
form.
Here is a guide that will help you better prepare yourself for the season.
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Tax Regulation Changes:
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The following changes took place within last year or the year before that you can take advantage of:
*Increased Base Amount
*Allowable tax refund on Public Transit.
*Bigger CCA allowance for businesses.
*Tax incentive for SR&D (Research and Development)
*Increased Home Buyer non-taxable withdrawal limit, and for renovations.
*Tax incentive for child care business expansion.
*Increased limit on Tuition and books tax credit.
*Allowable tax credit for child's recreational activities and child care costs.
*Decreased tax bracket percentage.
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Tax Checklist
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Before you get your taxes prepared, make sure you know and have the following items ready:
*Amount of money received from employer(s) during the year: If you receive your T4 then that's great and sufficient, if not then either your last paystub for the year (will show YTD amounts) or ROE (for terminated employees) will do
since they will show tax amounts required.
*Medical Receipts: If you purchase medicine or used medical facilities that required you to pay (not anything
covered by OHIP) then you are eligible for tax credit of up to 5% of your income. Make sure you have a proof of
usage of those facilities.
*Rent: If you rent or even own a house then you are eligible for tax credit. Make sure you have either receipts
from landlord, or proof of address (es). Even if you live with your parents or roommates, as long as you divide the total rent amount on your Income tax then you can claim
credit.
*Post-Secondary: If you went to post-secondary institution, then you are eligible for tax refund on your
tuition and books purchased during the year.
*Moving: If you moved during the year to be either closer to school or work then you are eligible for a tax credit as long as you can proof that you moved within 40 KM or
closer to work or school.
*Social Assistance, Child Benefits, and Other forms of Assistance: if you received Ontario Works, Child Benefits,
or any form of Government-Assistance during the year, then you will receive a T5 in the mail (or online) letting you
know of amounts received. If you enter a different amount, then it will be adjusted later on.
*Children: If you have children then you are eligible for income tax for the child based on year of birth, medical
needs, and any recreational activities done for the children that required payment.
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Tracking your Refund
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Even though you can do so by calling CRA or your tax preparer, its best to create an online account with CRA to
track your taxes, GST funds, Child Benefits, and any payments required. Go to: http://www.cra-arc.gc.ca/esrvc-
srvce/tx/ndvdls/myccnt/menu-eng.html and click on register and follow the instructions. If you required Tax
Preparations or Assistance, feel free to send me a message via one of the social media links in my profile. Thanks for
reading and hope this helps.
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