Tax Information in Canada

When are the CRA/Tax Deadlines?

Personal - April 30th                                                                   Business - June 15th                                                                Corporate - 6 Months after the fiscal year end                                           *Deadlines only apply when there is an amount owing to CRA at a rate of 5%

How much should I be paying for my tax return to be done?

The price of your tax return simply depends on how complex it is. In other words, how many different schedules does someone have to fill out to complete the return. Assuming your average persona's tax return consists of some T4's, a spouse, a few RRSPs, children and some child expenses, your're looking at $75 - $100 at companies like H&R Block.  Complex individuals may have Real Estate Rental Property (T776), a sole proprietor (T2125), with some income and expenses and assets to depreciate (CCA), or even corporate taxes. These complex returns will often be turned down by H&R Block. It is then recommended that the return be done by an Accountant, costing $60/hour on the low end, which may take 3-6 hours.  Often individuals choose to do their own taxes, which is not a bad idea if the return is fairly basic. If you think the return would fall under the category of "complex" you are probably missing out on a lot of money (unless you are already a tax professional) which would definetely not be worth the initial petty savings. If you are doing a return yourself, Intuit has a Turbo Tax Program, ranging from $17.99 to $44.99 and that's it. At the end of the day, the price will depend on the complexity of your tax return.

What determines if I have a refund, or owe money to CRA?

Your income is the first factor. To keep things very simple, the formula is, Total Tax Payable (which is factored by your income, tax brack and non refundable credits) less your total refundable credits (for example, tax paid from your T4 slip) Hopefully you paid more taxes throughout the year than what your yearly income is taxes at.

How can I pay less taxes?

Refundable Tax Credits apply to your refund directly regardless of income, tax bracket etc. Here is a list of Refundable Tax Credits

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