When you are your own boss it might seem like you are always working even if you may have more flexibility to take time off…so it is not surprising that the line between personal or business expenses may fall into the grey zone. The general rule of thumb is the golden question: did you use what you purchase to earn income? If you can answer yes reasonably, then it is likely a business expense.
Standard Returns – these types of returns include T4s, RRSP slips, some medical expenses and perhaps other income slips. The prices typically range from $60 to $80 depending on the work involved with processing the return. We also welcome people with investment portfolios beyond RRSP slips.
The apple of your eye could earn you an important tax deduction. In order to qualify for the deduction, you paid another person to look after your child to earn income from your business or employment or attend school. The child must live with you in order to claim the expenses and the child must be under 16 unless the child has an impairment in physical or mental function.
Do you run your business from your home? Are you familiar with the different expenses you can use to lower your tax bill? Here are some examples.
Did you know that the work-from-home tax credit is back in 2021? If you have worked more than 50% of the time from home for a period of at least four consecutive weeks in 2021 you are eligible to use your home office expenses as deductions to your income in 2021. CRA allows you to claim this credit through a simplified method using a $2 per day temporary flat rate, however, they increased the 2021 maximum to $500 from $400.
Do you use your vehicle for work? Did you know you can use a percentage of your car expenses in your tax return?
Donation must be to a Registered Canadian Charity. Contact us for details for the skill-testing question.
Have you received COVID-19 financial aid like many Canadian households? CRA is rolling out a review of the benefits that were paid out to recipients in an effort to identify those who did not qualify for the CERB/CRB payments. For those who received the benefit and are found to not be eligible may need to pay it back.