Tax Preparation

2018
28
Feb

A Guide to Maximizing Your Canada and US Tax Refund

Posted in Tax Accountant, Tax Preparation

US-Canada Tax preparation is no doubt daunting, but it can be turned into a boon if the returns are kept in mind. Did you know that cross-border taxes can be maximized by being a little proactive and keeping in mind some important tax tips?

Family Filing
Donations, political contributions, and medical expenses can be claimed by spouses including several other nonrefundable tax credit. Spouses can also transfer nonrefundable tax credits to each other. Filing the familial net income wisely can also yield greater refundable tax. Bigger refunds and lower overall tax bills usually pave the way to bigger win.

Family Deductions
Due to latest changes in the Universal child care benefit (UCCB), it is no longer available from the year 2018.

Deductions For Students

The best thing (and probably one not many students are aware of) is that Canadian students can claim the interest they have paid on student loans. Also, the best part is that even if you weren’t aware of this information up until now, you could still claim not only the 2017 student loan interest but also that of the previous five years. Now isn’t that amazing!

Employment Deductions
If as a part of your employment contract, you are expected to pay out of the pocket expenses, a possible deduction on your tax return may be in effect but only when you have paid on your own under your contract of employment and the employer has certified it under the form T2200.

Special Deductions For Writers And Artists
Artists and musicians who are employed can claim expenses for their literary works, drama and music compositions, or other creative performing works of art. You can mention computer costs, art supplies, home office costs, ballet shows to claim your expenses, but the maximum claim can be 20% of the net income.

Non-Refundable Tax Credits Claim
Under a new family caregiver amount, a $2000 is paid if a person is taking care of a spouse, minor child or adult. Expensive ambulance fees and medical expenditures can also be claimed.

Moving Deduction
If you had to move to take a new course or for employment at a new workplace, which is now at least 40 KMs closer to your destination of new job or training center, you can claim this deduction from your tax. Make sure to provide the receipts for your move.

Utilizing Pension Income Splitting Optimally
If a company plan allows pension, up to 50% of your pension benefits can be transferred to your spouse, should you plan to take advantage of pension splitting at any age. In most cases, you have to wait for the income split until you reach age 65.

File On Time
Simply submitting a tax return late can incur additional charges and nobody wants that. So, it’s a given!

2018
21
Feb

Why DIY Canada and US Tax Preparation is Not a Viable Option

Posted in Tax Accountant, Tax Preparation

Tax preparation is the process of preparing tax returns. You can prepare taxes with the help of tax preparation software or online services. The process might also be undertaken by a licensed professional, such as a licensed accountant or attorney.

When the deadline for tax filing approaches, Especially, US tax preparation or Cross-border aka Canada-US tax preparation, it becomes an overwhelming task to decide whether to do the task oneself or hire a professional. But to choose one of the two, it highly depends on some factors that must be put into consideration. Financial experts suggest being cognizant of the following situations before embarking on any path:

Complexity of the Financial Situation

The earnings of individuals can come from differing sources. To be aware of the complexity of one’s financial situation matters most. You can do it yourself, but if you cannot take optimal advantage of each deduction, the process is likely to of little benefit. The tax system itself is so overwhelmingly complex that having the information about how your particular financial situation relates to the system can be a somewhat difficult task.

A complicated financial condition may include owning a business, holding some investments, being divorced and paying alimony, or working freelance. Such conditions call for professional help. Contrarily, if earning a regular salary at one full-time job, being single, renting or the like are the situations you currently encounter, it may be feasible to file your taxes using tax software. But also consider that these situations change into the former as soon as you decide on starting a family, which brings us to;

A Change in the Financial Condition in the Past Year

Getting married, having a child, buying a house, or starting entrepreneurship is the kind of examples that require you to do your research on all the parameters around those situations and equip yourself with the knowledge of deductions and credits that might go with them. Also, often amongst the hassles of daily life or otherwise not having enough information about the DIY tax software and the whole related procedure ends up delivering no benefit, in which case, hiring an accountant might be more feasible.

Also, tax credits and deductions for seniors often go unnoticed. There are several income-based advantages that seniors can take but if they are doing it themselves, it might go overlooked, and the government apparently will not tell them about it. Hiring a professional might not guarantee the chances of seniors getting them, but it sure does increase them.

Affordability

The DIY method is likely to save some money but it has its pros and cons, and again, the recommendation is only made when you know all ins and outs of the procedure and know best where such software can be accessed for free. Contrarily, hiring a professional might cost money, but it ensures you have all the information and clarity regarding your tax situation. Therefore, the final decision rests with the taxpayer once he/she takes all relevant factors into account.

2018
14
Feb

How to Get Ready for Canada and US Tax Preparation before Hiring a Professional

Posted in Tax Accountant, Tax Preparation

Hiring a professional to prepare your tax file is more important than just an accurate record. In fact, it saves you from IRS’ further investigation into your taxes. In many businesses, to save the hustle, it’s considered ideal to hire an income tax expert to deal with the nitty-gritty of the tax preparation, especially in the context of Canada-US aka cross-border tax preparation. But to provide the tax accountant with all the right and organized tax records preferably well ahead of time is a crucial matter.
To avoid penalties, maximize the tax deductions, and getting the return file before the deadline, following information has to be provided to the tax accountant:
Providing accurate business records
• Financial statements including balance sheets, income, and cash flow statements about your business
• In case you have employees, provide payroll information
• Expenses of your business including that spent on advertising, traveling, rent, internet and telecommunications, shipping and raw materials’ cost, etc.)
• Disposal and additions in your assets for the year, such as land, edifice, machinery, vehicle.
• If your home is used as workplace

Previous tax records
• A copy of last year’s tax record (if any) is needed. This point is required if you happen to be a new client
• Paid amounts via installments –if you have made any payments in installments, mention those.
• Notice of assessment from last year
• Other relevant records such as
• Whatever applies to your business, it is important that you mention it before the accountant such as whether your business is a sole proprietorship, partnership (which requires you to file a T1 –personal income tax return), or your business is an incorporated company (here a T2(corporate) income tax return needs to be filed).
• For self-employment and commissions—T4A
• For partnership income—T5013
• Income coming Trusts—T3
• Income extracted from investment—T5
• In case of contribution slips—RRSP
• Useful information about dental and medical receipts, donations from charity and child care information also needs to be provided to the tax accountant

Choosing the professional rightly

The tax preparer is, after all, going to prepare taxes for you. And no matter how much preparation and hard work you put in to aid the preparer, if the professional himself lacks either qualification or experience or the necessary skill to excel at his job, it is going to be a pain in the neck for you. For example, a worst case scenario could be trusting a professional tax preparer with tons of valuable information and documentation about your business and not having them sign the return. This is something you would like to avoid at all costs possible. Some tips to choose the right tax preparer include asking them about their relevant qualifications and experience and doing detailed research on your own about their profile.
Therefore preparing oneself way ahead of time is not only crucial but a fairly smart move as well. It saves the trouble that might otherwise impend in time.

2016
02
Dec

US Personal Tax Preparation Tips

Posted in Tax Accountant, Tax Preparation

When it comes to filing a federal income tax return, you have to go through numerous problems/issues. This can be owed to the complicated procedures that are hard to understand, unless you’ve filed a return before. You are guaranteed to run into some details that you’re unsure of, and this can make it difficult to prepare your forms for filing. Are you facing trouble with Tax Preparation? If so, follow these helpful and useful tips:

Gather The Relevant Paperwork/Documents
US personal tax preparation in Mississauga, Brampton and Oakville can prove extremely difficult, especially if your paperwork and document aren’t organized. You must gather and compile all appropriate documents and lay them out in front of you. This can include your income statements, tax forms, as well as receipts for contributions and tax deductions.

Decide Which Filing Method Is Best For You
When it comes to filing a personal tax return, you have three options: hiring a professional, paper filing, or using tax preparation software. Even in today’s age of digital technology, most people will feel more secure with US personal tax preparation in Mississauga, Brampton and Oakville with the good ol’ paper and pen. With paper filing, however, you are responsible and in charge for every detail, start to finish. This may require assistance from a family member or friend who has filed a paper a tax return before.

Tax preparation software is one of the best options available, as they immediately answer all types of questions/queries you might have. Since the software is designed for filing taxes, it can automate the process monthly, making it easier for you to take advantage of tax credits and tax deductions. There are many websites available that can help you print or e-file your return quickly.

If you aren’t familiar with the filing process at all, it is usually best to hire a professional for US personal tax preparation in Mississauga, Brampton and Oakville. This option cuts all the guesswork and ensures all processes are completed securely and efficiently. You can be confident that your return is accurate and you are saving as much money as possible.

Take Your Time for the Tax Filing Process
If you are using a tax preparation software application or filing a paper return, you are responsible from moving one line to another in a calculated and precise manner. You may make several mistakes in your initial tries, but once you get a hang of the process, you can get it done easily. Make sure to keep all documents in check and ensure all details are relevant and appropriate to the tax filing requirements of your state.

Decide On Whether To Mail Or E-File
If you are filing a paper tax return, you need to mail it to the relevant tax authority in your state. On the other hand, if you are filing via a professional accountant or using a tax preparation software application, using e-file is a better, faster, and more convenient option. Since everything is submitted electronically, your application is processed instantly which means a faster tax refund.

Therefore, now that you are familiar with the tips mentioned above, US personal tax preparation in Mississauga, Brampton and Oakville hopefully won’t be a pro

2016
02
Dec

Tax Preparation – Selecting the Right Tax Preparer and Ensuring the Process Goes Smoothly

Posted in Tax Accountant, Tax Consultant, Tax Preparation

Tax time can be a stressful process in Ontario, especially if you aren’t aware of the process. Businesses and consumers alike need to understand that they are ultimately responsible for everything on a tax return, regardless of who prepared it. While most tax professionals are honest, qualified and reliable, it is imperative that you find a trustworthy and dependable service to avoid during and after you hand over the prepared documents for your preparation of income tax returns. After all, nobody wants to deal with income tax return problems just because the preparer made a mistake. So, without further ado, look at these tips to find a good service for Tax Preparation in Mississauga, Brampton and Oakville and ensure the process goes smoothly:

Check Qualifications of the Preparer – When it comes to tax preparation, you need to ensure you are hiring an experienced and knowledgeable preparer. So, don’t hesitate on asking different preparers for their training, qualifications, education, and experience of the current tax lax in Ontario. For any type of return whether it is simple return or more complicated tax return, your interests are best served if it is done by a professional accountant who has been preparing the returns for 10 years or more. If you go to a book keeper or tax preparer who is not a qualified accountant, you run the risk of not getting the best for your taxes paid.

Check Preparer’s History – Don’t hesitate on conducting a background check to see if the preparer has a questionable or clear history. Check for how many years the tax preparing is in the business and testimonials from the other clients. For a professional Accountant you should ask for the designation of the accountants.

Ask about Service Fees – For successful Tax Preparation in Mississauga, Brampton and Oakville avoid preparers who say they can get you larger refunds than others can. Also, avoid people who say that you should deposit the refunds into a preparer’s bank account first. All funds should be sent to you directly.

Ask About Electronically Filing Your Return – Times have changed and so has the process of filing tax returns. Now, it is also required that your preparer offers CRA e-file. This ensures that your tax return has been filed electronically, reducing time and hassle from your end.

Make Sure the Preparer is Available – Ensure that whichever tax preparer you choose is available after the return has been filed. This may prove essential and helpful in circumstances where questions arise regarding your tax return.

Provide Receipts and Records – The best preparers will ask to see all your receipts and records to determine your tax credits, deductions, total income, and other essentials. However, make sure preparer you choose doesn’t e-file your return using your last pay stub, as it is against CRA e-file rules. It should be done with your T4.

Never Sign a Blank Return – Tax Preparation in Mississauga, Brampton and Oakville can prove to be quite tricky, as you have to be careful about whom you can trust. Regardless of whom you choose, ensure that you NEVER sign a blank return. Immediately fire the person who asks you to sign a blank tax form, as it could be a sign of potential fraud.

Ensure the copy of the tax return – Preparers must give you a copy of the return to complete the process.
So, if you want to select a reliable service for Tax Preparation and ensure the process goes smoothly, make sure to follow the abovementioned tips.

2015
08
May

Get Your Taxes Prepared By The Experts In Mississauga

Posted in Tax Accountant, Tax Consultant, Tax Preparation

Mississauga, located in South Ontario, Canada is among the commercial hubs. The presence of more than 60 Fortune 500 companies reiterates the fact. It is quite obvious that the companies need to pay the corporate taxes and the employees have to pay income taxes. Hence, the Tax consultant Mississauga are always in demand. They take care of the corporate taxes filed by the companies and income tax paid by the employees. If you happen to be an income tax payer or corporate taxpayer, you would definitely require the services of tax consultants. As a taxpayer, you need to furnish all the details of the income, savings and investments so that you are able to save as much as possible.  The investments that you make can entitle you with tax benefits, however, the interest that you get paid on the savings come under taxation. Someone who is not aware of all these details will not be able to file the returns. The individuals also do not have this amount of time to calculate the taxes and the investments. In case of enterprises, the large amount of tax is to be paid and therefore services for Tax preparation Mississauga required.While choosing the tax firms, you must ensure that the tax consultancy is of good repute and possess an impressive clientele.

A definite period of time is allotted to the companies and individuals to prepare their taxes and file the returns. In case of delayed tax filings, the taxpayer has to bear the fine which will depend on the amount of tax to be paid. It is therefore mandatory for you to pay taxes on time so that you are not labeled a defaulter. Tax consultants play a crucial role in these conditions as they prepare the taxes and also take care of the investments which can help you save taxes using the legal way. The tax firms have a team of experts who implement tax saving ways according to the income. It is hence ensured that you are able to save as much tax as possible. You also build savings and investment through the process. In addition to the tax services, services of Accountant Mississauga are also afforded for maintaining the accounts. The accounts need to be checked and verified on a regular basis to track the performance of the company. Hence, it is imperative that you hire the services of a trusted Tax Accountant Mississauga who takes care of your accounts and taxes.

If you are availing tax and account consultation services, ensure that you hire only those consultants whom you trust. They may be privy to certain information which must not be disclosed to your rivals.  Those who enjoy an impeccable reputation as honest and competent tax consultants must be hired for all taxes and account related works. For larger enterprises, corporate tax accountant Mississauga is of great help in taking care of the accounts and taxes of the company. The resources invested on these consultants are totally worth.


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