Do I need to file an FBAR?
Unlike the Canadian tax system, the U.S. system is based on citizenship and residency. If you are a U.S. citizen living in Canada, you may still be required to file a U.S. tax return even if you...
View ArticleChanging small business ownership can have tax implications
Small business owners do receive some tax advantages. For example, they may be able to pay family members for doing work for the company, effectively splitting some of the business income. But as the...
View ArticleGovernment getting more serious about foreign property and income
Canadians are required to report foreign property with a cost of more than $100,000 using Form T1135 Foreign Income Verification Statement. The form is meant to ensure you report any foreign income or...
View ArticleConfessing to the taxman
Failing to report income on your tax returns can lead to penalties and interest charges. If you know you have unreported income and are worried that the Canada Revenue Agency is about to knock at your...
View ArticleNew credit provides additional tax savings for new donors
When was the last time you, your spouse or common-law partner claimed a charitable donation on your tax return? If it was before 2008, you are now considered a first-time donor under the new enhanced...
View ArticleCRA push for electronic filing is working
One of the Canada Revenue Agency’s goals is to move taxpayers towards electronic filing. Filing electronically makes processing easier and cuts down on the cost of handling a tax return. The CRA...
View ArticleTax Court upholds the Amount for Eligible Dependant rules
Parents who pay child support and had hoped to claim an eligible dependant credit were disappointed recently when a federal court decision went against them. Single parents with joint or primary...
View ArticleLife changes can impact your tax withholdings
Every new employee is asked by the payroll department to complete a TD1 Form to determine the amount of tax to withhold. Employers are required to withhold a certain amount of tax based on the...
View ArticleMaking the most of summer and tax savings
Most people only think of income tax in March or April, but it’s a year-round process and deductions can come at any time of the year, even in the summer months. Here are some common summertime tax...
View ArticleHow not to fight the tax man
The Income Tax Act allows taxpayers to appeal or fight an assessment. There is a process and you must follow the rules if you do want to fight the tax man. However, in the last few years, there has...
View ArticleDeferring your Old Age Security Benefits can be beneficial
Changes to the Old Age Security benefit give qualified recipients more choice, but step one is determining eligibility. Old Age Security (OAS) is a monthly benefit paid to eligible taxpayers 65 or...
View ArticleWhat is the Canada Pension Plan?
Every Canadian 18 or over is required to contribute a percentage of their employment income to the Canada Pension Plan (CPP). For 2013, it is 4.95% on maximum earnings of $47,600 and your employer is...
View ArticleProvincial tuition rebate programs can bring a little credit after graduation
Post-secondary educations are expensive propositions, and many students graduate and start life with large student loans to pay off. However, four provinces are trying to attract recent graduates to...
View ArticleWhat is a carry-forward amount?
Post-secondary students have access to some of the most generous tax credits. Their T2202A Form allows full-time and part-time students to claim their tuition as well as the education and textbook...
View ArticleHow much money can I earn from my summer job before I pay income tax?
Most people know income tax is deducted from every paycheque and they need to file a tax return. If you earned a small amount of money during the year it may not seem worth it to file a tax return, but...
View ArticleBeware of paying a percentage of your Disability Tax Credit
The Disability Tax Credit (DTC) may be one of the most commonly overlooked tax deductions. Many people do not claim it, assuming they do not qualify. But if you have a disability that causes you some...
View ArticleWhat happens to tuition and education carry-forward amounts when you move to...
Students receive generous tax credits, and the federal education amounts are the same regardless of where you live: $400 per month for a full-time student, and $120 per month for part-time study. There...
View ArticleYes, tips are taxable income
Even though most wait staff might view their tips as a gift, the Canada Revenue Agency does not share that view. Tips are considered taxable income and need to be reported on your tax return as...
View ArticleStarted working for yourself this year? Tax season is closer than you think
The deadline for self-employed Canadians or owners of unincorporated small businesses to file their 2013 tax return without incurring a late-filing penalty is June 16, 2014. That may seem far into the...
View ArticleReporting income from crowdfunding
Vancouverite Eric Migicovsky had an idea while he was studying engineering at the University of Waterloo: A wristwatch that would sync to a user’s smart phone, displaying incoming text messages and...
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