Personal tax Archives

I moved from the UK to Canada for school. Can I deduct moving expenses?

According to the CRA, if the taxpayer changes residences and begins full-time attendance at a post-secondary institution (whether or not in Canada), eligible moving expenses (from old residence to new) may be deducted if the move results in you living at least 40 KMs closer to the institution. Also, at least one of the residences … Continue reading

I don’t have enough money to pay my income tax bill. What should I do?

The CRA waits 90 days after the Notice of Assessment after which they will begin the process of trying to collect the unpaid tax bill from you (generally, they will first attempt to contact you via phone). To avoid unpleasantness, you should contact the CRA at 1-888-863-8657 to arrange a payment schedule which works for … Continue reading

I am trying to mail my return to the CRA. Will the CRA consider the date of receipt to be the date that I mail the return or the date that it arrives at the CRA centre?

The CRA will consider the date that the return is sent as the date of receipt. That means, as long as you send your personal tax return by April 30, the CRA will not impose late filing penalty. You should keep the mailing receipt as proof of the filing date.

Can I claim my dependent’s disability amount?

The disability tax credit (DTC) is offered in order to lessen the tax burden for individuals who are physically or mentally impaired. The DTC can be applied for by completing Form T2201, Disability Tax Credit Certificate. If a taxpayer does not claim all or part of the disability amount on his or her tax return … Continue reading

I am required to file a trust return for the year. When is the return due?

You have to file the T3 return and pay any balance owing no later than 90 days after the trust’s tax year-end. If you do not have all the tax slips required to complete the return by the due date, you should estimate the income. If, after you receive the slips, you find that the … Continue reading

Is there ever a circumstance where the CRA can refuse to issue my refund?

Yes, one such circumstance where the CRA can refuse to issue your refund is when the taxable income for a tax year is reported after 3 years of the reporting period. For example, if the tax return for the 2008 year is filed on September 2013, the CRA can refuse to issue that refund because … Continue reading

As a GST/HST registrant, when am I required to start collecting HST on sales?

You are required to collect HST when your taxable sales (over the last 4 quarters) exceeds the $30,000 threshold. As a voluntary registrant, you need to collect HST on sales starting on the earlier of: the effective registration date listed on your GST/HST account application, the day of the supply (sale) that made go over … Continue reading

I have a family trust owning assets and I’ve heard of something called the 21 Year rule. What does that mean?

After 21 years of the family trust’s formation, the trust is deemed to have disposed of and reacquired certain types of property at their fair market value. This can give rise to a capital gain since most property increases in value over time. The 21 year rule for Trusts and its impact on you, should … Continue reading

How far back can the CRA audit an individual or business?

The CRA reserves the right to audit your prior year tax filings going back six years. Hence, you should keep receipts and documentation supporting your claims up to six years.

What are the consequences of issuing tax slips late?

If you fail to file tax slips by the due date you will be subject to late filing penalty based on the number of slips you file late. For 1-50 slips, the penalty is $10 per day up to a maximum of $1,000. For more information check out this section on the CRA website. However, … Continue reading

Can you explain how I can withdraw the over-contributed RRSP amounts from the financial institution?

If you over contribute in your RRSP (even beyond the $2,000 allowed) you run the risk of being penalized 1% of the over contribution per month. So when you realize you do not want to leave it in the RRSP and be penalized, you try and withdraw it from the financial institution. However, the institution … Continue reading

I am considering taking out a loan to invest through my RRSP/TFSA/RESP. Will the interest on the loan be tax deductible?

No, although interest on loan borrowed to invest through non-registered accounts are tax deductible (normally up to the amount of investment income), interest on loans borrowed to invest through such registered savings plans are not tax deductible.

How can I check whether the CRA has received my payment?

You can check by giving the CRA a call a few days after the payment is made. The CRA’s contact numbers are listed here. The other option is to log in to your “My Account” on the CRA website and access your information. The registration generally takes around 10 business days.

If I cannot find my tax slips, what can I do?

If you’ve lost/misplaced/or never got your tax slips such as a T4, T4A, T5, T4RSP, etc, you can call the CRA and have them mailed/faxed over to you. You can call the CRA at 1-800-959-8281 to submit a request with a representative.

Tax Strategies for Newlyweds Watch Video

This short article is called tax tips for newlyweds. If you recently got married and have a hangover

Tag: Personal tax