Tag: Personal tax

Who can claim the Overseas Employment Tax Credit?

In order to claim the Overseas Employment Tax Credit, individuals are required to be a Canadian resident or deemed resident at any time in the year AND earn employment income from performing at least 90% of the work outside of Canada for more than six consecutive months with a specified employer. As well, the employment … Continue reading Who can claim the Overseas Employment Tax Credit?

What happens if I over contribute to my RRSP?

You have excess RRSP contributions if the total of: Your unused contributions from prior years, Your current year contributions, and $2000 is more than your RRSP deduction limit shown on your latest Notice of Assessment. You have to pay a tax of 1% per month on your excess contributions for every month that the contributions … Continue reading What happens if I over contribute to my RRSP?

I have very low or no income, do I need to file a tax return?

If you are older than 18 years of age, you should file a tax return in order to apply for and receive certain government payments such as GST and Ontario Sales Tax refunds, Canada Child Tax Benefit and Guaranteed Income Supplement for seniors. You can also accumulate RRSP contribution room based on your earned income, … Continue reading I have very low or no income, do I need to file a tax return?

Do I need to keep a logbook to claim motor vehicle expenses on my return? What should I include in the book?

Only motor vehicle expenses incurred during business use is eligible for deduction. The CRA considers travel between home and the principal place of business to be personal use. In order to substantiate your motor vehicle claims, you should keep a detailed logbook to track the business/personal use of the vehicle. The Income Tax Act does … Continue reading Do I need to keep a logbook to claim motor vehicle expenses on my return? What should I include in the book?

How much can I deduct for past service contributions to a RPP while not a contributor prior to 1990?

Under the employee contribution rules for past service contributions while not a contributor on and after 1991 for service prior to 1990, a maximum of $3,500 may be deducted per year for contributions that were made for years of service prior to 1990. The overall limit is $3,500 times the number of years of pre-1990 … Continue reading How much can I deduct for past service contributions to a RPP while not a contributor prior to 1990?

What are the conditions to open a TFSA (Tax-Free Savings Account)?

Three conditions must be met: You must be an individual who is over the age of 18 You must have a Canadian social insurance number You must be a resident of Canada

What are the Tax Deductions for 2012 in Canada? Watch Video

This article talks about 2012 tax deductions for individuals.

What are the Tax Deductions for 2012 in Canada?

This article talks about 2012 tax deductions for individuals. I am going to review the five most missed tax deductions. So, let’s get started.

Do I have to include a car allowance that I receive from my employer in my income?

An automobile allowance paid by an employer to his employee is taxable to the employee, unless it is based on actual kilometers driven by the employee. For example, a flat monthly car allowance of $500 would be a taxable benefit to the employee, and should be included in the employee’s T4 slip. For an employer … Continue reading Do I have to include a car allowance that I receive from my employer in my income?

If an employer is provided with travel allowance, is it a taxable benefit to an employee?

Question: I have employees that are driving frequently due to the nature of their work. If I provide them with a car allowance, is it a taxable benefit to them? Answer: As a corporation, you can pay them a flat allowance, but then it would be part of their regular payroll. The employee would then … Continue reading If an employer is provided with travel allowance, is it a taxable benefit to an employee?

How to Increase Your Personal Tax Return Savings

Do you want to know how to increase your personal return tax savings? This article discusses how to save taxes on your 2012 Canadian personal tax return. I am now going to take you through the top 5 ways to save taxes on your 2012 T1, so let’s get started.

How to Increase Your Personal Tax Return Savings Watch Video

Do you want to know how to increase your personal return tax savings?

I’m not sure I will be able to get my T4 slip on time to file my 2012 tax return, what can I do?

If you haven’t received a T4 slip from your employer make sure you request it from them as soon as possible. However, there are cases where you will not be able to get your T4 slip from your employer in time to file your personal tax return. In this case, if you know that you … Continue reading I’m not sure I will be able to get my T4 slip on time to file my 2012 tax return, what can I do?

Do I have to include a taxable benefit in my income for a company provided car?

Question: My corporation owns a vehicle and its available for me to use. Are there any tax implications? Answer: When a corporation owns a vehicle and provides it to an employee’s for usage, the personal KM’s driven are considered a taxable benefit. Therefore, when you file the employee’s T4 slip a standby charge and operating … Continue reading Do I have to include a taxable benefit in my income for a company provided car?

Should I wait to pay my tax balances if I filed a taxpayer relief form?

Question: If I am late-filing a tax return due to an external factor and I did file a taxpayer relief form to explain the situation, should I pay my tax balances owing now or wait till the CRA to process my form? Answer:Well, you do have a choice to defer you payment. However, this will … Continue reading Should I wait to pay my tax balances if I filed a taxpayer relief form?

Pin It on Pinterest