Frequently Asked Questions
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The return is due April 30, 2025, and payment is due April 30, 2025.
For most people, the return is due April 30, 2025, and payment is due April 30, 2025
For a self-employed person and their spouse or common-law partner (other than those stated above), the return is due June 16, 2025, and payment is due April 30, 2025
- RRSP Contribution Deadline: March 3, 2025
- For a deceased person and their surviving spouse or common-law partner, see Guide T4011, Preparing Returns for Deceased Persons
Even if you did not have any income in the year, you still have to file a return to get the benefits, credits, and refund you are entitled to.
Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep your supporting documents for seven years in case the CRA asks you to provide them later.
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Personal Income Tax FAQ's
If you are turning 19 before April 1 of next year, you are eligible to apply for GST credit on your Tax Return for this year. You must also file the previous year’s tax return.
They need to obtain form T2202A from his school. They must file their tax return first. Based on their net income and other questions needed to be answered, the tuition fee may be able to be transferred to you.
Childcare expenses must be claimed by the person with the lower income – in this case yourself. These expenses could be claimed by the person with the higher income in some exceptions.
Private School tuition fees cannot be claimed.
You may qualify for a credit if at any time in the year, if you were Single, Divorced, Separated or Widowed. The “amount for an eligible dependent” is reduced by the income of the dependent for which the claim is made. You do not need to be single, divorced, separated or widowed throughout the year, as long at some point in the year your dependent was living with you. information.
On your most recent Notice of Assessment or Re-Assessment from Canada Revenue Agency, the RRSP limit calculation is indicated. RRSP limit is calculated for the current tax year once your tax return is filed.
At the same time, you will have to consider any ‘undeducted amount’ on the same Notice. Also, your Home Buyers’/Life-long Learning Plan(s) payment requirement is on there.
The withdrawal amount must be repaid over a 15-year period, starting with the second year after the withdrawal. Canada Revenue Agency notifies every year the date by which it must be repaid and yearly instalment. If repayment through investment in RRSP (even if no room to invest) does not happen before the stipulated date, it is added as income for that year.
No, you can use simplified method to claim meal expenses. You can claim three meals per day and $23 per meal (in 2021). If you go to US then you can claim US $17. You need a signed copy of TL2 form from your employer.
You can claim moving expenses to the extent of your income that you earned after your move. If you moved but could not claim all the moving expenses on the return for that year, you may be able to claim the remaining expenses on your return in a future year. In addition, you can carry forward unused moving expenses amounts until you have enough income to claim them.
Yes, you would receive taxable benefit at the time of exercising. Taxable benefit would be the calculated difference between fair market value at the
time of exercise minus option price. However, you can file an election form T1212 to defer taxes until the disposition of shares.
You can claim the cost of supplies to repair the rental property. However, you cannot deduct the cost of the work you did. You can claim reasonable expenses incurred to transport tools and material to rental property.
If your mother is 65 or older and her income is under a certain amount you can claim the “caregiver amount” for her. She must be living with you (at any time during the year) and not paying rent or taking care of any of your children.
Between you and your spouse medical expenses must be claimed by the person whose income is lower. Either of you can claim for self, spouse and dependant child who is 18 years old of age and under. However, the lower of $2421 and 3 % of your net income is not allowed. As far as claiming the medical on behalf of your son, you can claim his portion of expenses, only if he was dependent on you for support. It is reduced by lower $2421 and 3 % of his income. The claim is restricted to $ 10,000 per dependant. You can claim dental treatment, prescription drugs, eyeglasses, premium paid for private health coverage etc.
You can rent a minor part of your house; however, you should not claim capital cost allowance on your house.
You cannot claim the cost of appliances on the tax return. However, you can claim the capital cost allowance on appliances. Capital cost allowance cannot be used to create or increase rental loss.
Business Tax FAQ's
You will need signed T2200 form, “Declaration of Conditions of Employment” from your employer. There are also additional requirements, based on the types of expenses you incur.
No, the traveling cost from home to work and work to home is considered personal expenses.
Yes, you may claim additional expenses, which may not be allowed to salaried employees such as property tax and insurance for home office expenses. Employment expenses are limited to commission income plus capital cost allowance and interest on car loan.
You need a signed T2200 from your employer to claim employment expenses. You should keep all the receipts and detailed log sheet of kilometers driven for business and personal.
A passenger vehicle is an automobile purchased or leased after June 17, 1987. Most cars, station wagons, vans, and some pick-up trucks are passenger vehicles. Passenger vehicles are subject to the limits for capital cost allowance, interest, and leasing costs.
Yes, you can, unless leasing cost exceeds $800 per month, then the lease formula would be used to calculate allowable deduction.
You should take following factors into account:
- How many miles are you expecting to travel? If you expect to have a lot of mileage then most leasing companies, charge additional fees over certain mileage. This information should be specified in leasing contract. You have to determine how much extra you have to pay over specified mileage. Then it might not be to your advantage to lease a car.
- How often do you change a vehicle? Are you the type of person who changes a vehicle after 2 to 3 years or do you like to keep the same vehicle for 5 to 10 years. It is better to lease if only keeping the vehicle for a short period of time.
- Do you have Cash flow? Do you have enough cash to purchase a vehicle. If not, it may be more beneficial for you to lease. Since leasing a vehicle is easier for a person with bad credit rating.
Incorporation does make sense due to limited liability concept, splitting income, lower tax burden etc. If you would like to know whether you should incorporate your business or not and for further information here is a link for a trusted recommended referral for this inquiry plus other services that may be of interest to you.