Personal tax returns can vary in type of income, deductions, tax credits and more. Employees are limited on employment expenses that can be deducted. Take care when claiming office in the home or claiming depreciation (capital cost allowance) on vehicles. We can help prepare your annual personal tax returns and provide timely advice.
Deadline to file your tax return without any penalties is April 30 or June 15 if you, or your spouse, have self-employment income.
Deadline to remit any taxes owing without incurring interest charges is April 30 (if on a weekend, then the first business day following)..
As the old cliché goes; death and taxes, the two things that are certain in life. When you pass away, all of your assets are deemed to be disposed of at their fair market value unless you are survived by your spouse and you have willed it to them. If no surviving spouse, then up to 50% marginal tax rates may apply on this income. Upon death of the first spouse, all assets can rollover tax-free, at cost, to the surviving spouse.
The big tax hit comes when the last spouse passes away. We can help plan in order to reduce this large tax burden, by considering a life insurance policy to cover tax liabilities, debts and lost income, if necessary, pre-inheritance, selecting beneficiaries for life insurance policies/RRSPs/RRIFs, prepare a will or multiple wills, consider leaving money to a charity that you are passionate about in your will and more.
Looking to retire? Or have you been offered different retirement buyout packages? Do you collect a lump sum or a salary continuation? Can you roll some retiring allowances into your RRSP? Do you or your spouse have RRSP contribution room available?
Canada Pension Plan benefits can be applied for early, at age 60, or late, at age 70, but you need to know how much your benefits are reduced by for early enrollment and how much benefits are enhanced by delaying your application. Old Age Security benefits currently can be applied for at age 65 but be aware that the age of eligibility changes in 2023 to age 67. OAS benefits can also be deferred up to 5 years by choosing to defer application and your benefits will be enhanced by delaying. Please consider that your OAS benefits can be clawed back when your net income reaches a certain threshold (indexed annually) and consider applying for Guaranteed Income Supplement (GIS) if you have low income (GIS is tax-free income). Much time and planning is needed to calculate your after-tax retirement income. A tax plan should be prepared to forecast your retirement and your personal taxes.
Are you planning to move to another country? Or do you own property in Canada that earns income but you live outside Canada? We can assist filing proper annual forms and Canadian tax returns. Does withholding tax apply? Non-residents may be required to have an agent in Canada submit withholding taxes on their behalf, contact us for assistance.