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How to prepare for (and survive) tax season?


Personal Tax Compliance

Client's ask us all the time, how can we prepare ( and survive) the upcoming tax season? So we put together a comprehensive guide of information required to help you this tax season.  We outlined some of the important steps to ensure you have all your information in order for income, deductions and tax credits, and foreign property.

Income

Ensure to gather all of your T Slips for Income in the Year 

-Employment income (T4)
-Payments from an estate Trust (T3)
-Old Age Security benefits (T4A) (OAS)
-Canada Pension Plan benefits (T4A) (P)
-Pension income (T4RSP) (T4RIF) (T4A)
-Employment insurance benefits (T4E)
-Canadian dividends and interest (T5)
-Investments in limited partnerships (T5013)
-Universal child care benefits (RC62)
-Income from sources outside of Canada ( Slips or details where no slips are available)

Other Income

Slips may not be provided by your investment provider or bank, so you will need the statements for your asset classes and purchase and sale agreements to validate the cost base and sales price so you can determine and capital gains triggered within the year.

-Proceeds from the sale of any stocks, real estate, bonds, options, mutual funds, precious metals, or other asset classes.

Deductions/ Credits

-Contributions to RRSP
-Interest on student loan in the current year or prior years if not claimed in the past.
-Union dues or professional dues
-Costs for monthly public transit passes
-First time Home Buyers's Amount
-Expenses to enroll children under the age of 16 to registered programs such as recreational, development, cultural, physical, or art activities.
-Alimony or maintenance support in accordance with federal law or agreement.
-Child care expenses so you could work
-Expenses in which you incurred to earn investment income, such as investment advisory fees, interest, and other fees
-Charitable or political donations (tax receipts are required)
-Medical or dental expenses for which you were not reimbursed as part of your insurance premiums.
-Any auto or business expenses related to your employment ( Please note you must have a signed T2200 completed by your employer and also an auto log book.)
-Dependent children that attended University or College in the year ( Form T2202A, T2202, TL11B,TL11C)
-Support for relative who were disable or provide in home care for a parent or grandparent over the age of 65.
-Foreign taxes paid ( you may apply for a foreign tax credit)

Tax Instalments

-If you made tax instalments in the year, you will need to confirm receipt of payments as this is applied to your taxes owing for the year.

Foreign Reporting

-If you held foreign property, i.e assets outside of Canada in the year with a cost of more than $100,000, then you will require the following information for T1135 reporting:
-Breakdown of assets by cost, and maximum cost, and also must be converted in Canadian dollars at the year end rate ( December 31).

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