2014 PERSONAL INCOME TAX HELPFUL HINTS
UNREPORTED INCOME / MISSING SLIPS
Revenue Canada is getting very tough on taxpayers that do not report all income or “omit” T-slips (ie: T3’s, T4’s, T5’s etc). If a tax payer does not report income from a various “T slips” more than once, Revenue Canada has begun assessing significant penalties and interest. Please be sure that you have received (and forwarded to us) ALL income slips for the year.
POST SECONDARY EDUCATION – tuition slips and rent/residence
You MUST obtain a copy of Form T2202A which is issued by the educational institution (students may access this form from their school website). Please note that other receipts for books, etc. are NOT required as all students receive a basic credit for these based on the number of months in attendance at school.
If renting or residing off campus, please provide amount of rent paid, rental address and number of months at that location.
If possible, ask your doctor/dentist/pharmacist for a year end summary of all your medical expenses for 2013. This will make it easier to ensure that all your expenses are accounted for. Be sure to include the cost of any private health plan premiums you may have incurred.
Please note that the medical claim is based on income and any allowable claim must be greater than 3% of your income.
If your income is greater than $70,300 you need to have at least $2,109 in medical costs before you begin to get any credit.
If you contributed to an RRSP during the year be sure to provide us with your contribution receipts up to and including March 2, 2015 as they can be applied to your 2014 filing year end (and must be reported whether being claimed in this tax year or not).
CHILDRENS FITNESS AMOUNT/CHILDREN’S ARTS CREDIT
If you have paid for certain programs involving physical activity and/or arts activities for your children (maximum $500 per child), you may qualify for a tax credit. The child must have been under 16 years of age at the beginning of the year.
RENTAL PROPERTIES / SELF EMPLOYED INCOME / VEHICLE EXPENSES
If you have any of these income/expense scenarios please visit our website. Under the “Forms” page you will find the various templates to fill out to summarize your figures for 2014. Please note that we do NOT require all of your receipts, etc but simply a summary of figures for the year. All receipts and supporting documents should be kept in case CRA asks you to justify your claims. Be sure to separate HST from your figures.
With respect to vehicle expenses, it is important to provide us with a breakdown of kilometres driven for business and personal. This is what determines the allowable expense against income.
Also, please note that if you are an employee receiving a T4 and you wish to write-off expenses against that income, you MUST obtain Form T2200 “Declaration of Conditions of Employment” from your employer which will indicate the type of expenses you were required to incur for employment purposes.
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