Tax season is here, and the deadline to file your personal tax returns is April 30, 2020.
If you are self-employed, then the tax filing deadline is June 15, 2020. However, it should be noted that regardless of this deadline, all outstanding balances owing must be paid by April 30, 2020.
There are several services at Prasad & Company LLP that can be utilized to accurately file tax returns. The T1 Personal Income Tax return form will be discussed in this post. This is in addition to what you should know about filing taxes if you are self-employed.
What should I know about filing my T1 return?
The Canada Revenue Agency (CRA) has updated its T1 personal income tax return package. There are several changes that one should know about before approaching the document.
Firstly, changes include the use of plain language that a general audience could easily read and understand. This is in addition to a reduced number of forms via the deletion of the Schedule 1 worksheet and a more recent update of the worksheets in order to simplify calculations. The charts associated with these forms can now be found within the Income Tax and Benefit Return page and the Work for the Return page on the CRA website.
The first page of the package prompts one to fill out information regarding the basics such as one’s address, email, name, province, and marital status.
Meanwhile, the next page pertains to information about Elections Canada for the purpose of whether or not one is on the list of voters. This is followed up by questions regarding income that is exempt under the Indian Act. The next section prompts one to indicate if they own foreign investment property that exceeds $100,000.
The third page has been updated in terms of the digits that identify each line. For instance, the line that details one's total income is now 15000 as opposed to 150.
One can calculate their net income on the next page after the tabulation of deductions and expenses such as RRSP and child care. Net income now pertains to line 23600.
The fifth page is focused on taxable income. Following that are two pages where one can calculate their federal non-refundable credits and federal tax respectively. The remaining page features balance owing and refund calculations.
How do I file taxes if I am self-employed?
For self-employed individuals, there are steps and considerations that one should take in order to file their taxes.
For instance, if one was self-employed in 2019, then their tax return for that year should be either filed on or before June 15, 2020. It should be noted, however, if there exists a balance owing for the previous year, then one must pay that balance either on or before April 30, 2020.
To get started on making a payment, one can utilize the CRA’s services in collections and payments. There are several payment options. These include, but are not limited to, online banking and pre-authorized debit when it comes to making electronic payments. In addition, one can make payments via their credit card, Interac e-Transfer, and PayPal. Other payment options include using third-party service providers or paying via cheque and in-person.
After making a payment, one’s next step is to confirm it in order to ensure correctness and accuracy. To do so, one should visit their account page within the CRA website. This page allows one to go over the information featuring their income tax and benefits.
If one’s payment is not reflected on their account, then one can conduct a phone call to the CRA to receive help.
What are my next steps?
Filing your tax returns neither has to be complicated nor time-consuming. With Prasad & Company LLP, you can be assured that your taxes are filed correctly the first time around.
Prasad & Company LLP offers excellent services to clients thanks to its team of accounting experts who have worked within the industry for countless years.
To reach the firm by phone, you should call 416-226-9840. The toll-free number for Prasad & Company LLP is 1-888-550-TCAS.