Did you know you can now get a proof of income statement online?

cra-online-services-imageDid you know you can now get a proof of income statement online?

Financial institutions or government departments may ask to provide a proof of income statement when applying for student loans, grants, subsidies or mortgages. Having online access to your CRA account will speed up this process as you would be able to login and print your proof of income statements instead of calling and waiting for one in the mail.

Online access also allows you the option to check on your income tax return, view personalized benefit and credit information and check RRSP & TFSA contributions limits.

See the link below for steps to registering for your CRA account online.

 http://www.cra-arc.gc.ca/nwsrm/txtps/2016/tt160823-eng.html

Disability Tax Credit

dtcDo you or a family member have a disability?  Are you markedly restricted in performing day to day activities?

If you answered yes to these questions, you may be entitled to receive a tax credit.  The following guide has a wealth of information to help you determine whether or not you or a family member would qualify to claim the Disability Tax Credit.

http://www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-15e.pdf

Have you been approached by a company that says they can get you thousands of dollars in tax refunds and grants if you qualify for the Disability Tax Credit?

There are a number of these companies popping up nationwide that offer to help you fill out the appropriate forms to apply for the Disability Tax Credit, setup a Registered Disability Savings Plan (RDSP) and help you apply for the Canada Disability Savings Grant for a fee of about 20 – 30% of the proceeds that you are entitled to receive.

For example, if you qualify for the tax credit for a 10 year period you could receive up to $1,800 per year for a total of $18,000.  Based on the 20 - 30% fee schedule you would lose between $3,600 to $5,400 of your tax credit.  The Federal government has taken steps to help disabled taxpayers apply for the DTC without paying huge fees. Form T2201 has been revised and asks you if you want the CRA to automatically adjust all years, whereas in the past your accountant had to file T1 adjustment requests.  So the process of applying for the DTC is now greatly simplified and you shouldn’t need to incur significant accounting fees to apply and claim the DTC.

To apply for the Disability Tax Credit and save thousands of dollars in fees just follow these simple steps:

  1. If you feel that either you or your family member should qualify for the Disability Tax Credit, take the first step and download the attached T2201 form.http://www.cra-arc.gc.ca/E/pbg/tf/t2201/t2201-15e.pdf
  2. Complete the sections of Part A that apply to you.
  3. Make sure you check the box in Section 3 – “Yes, I want the CRA to adjust my returns if possible.”
  4. Sign Section 4
  5. Make an appointment to see your doctor.  This should be a medical professional who has detailed knowledge of your medical history.  Be sure to bring the T2201 form with you to your doctor’s appointment but BEFORE you give it to your doctor or mention that you have the form, ask for your doctor’s verbal opinion about whether he feels you would qualify for the Disability Tax Credit. If the doctor believes you should qualify for the tax credit then ask your doctor to fill out the T2201 form. No sense in paying to have the form completed if you aren’t going to qualify. The doctors charge a nominal fee of $50 - $150 to fill out the form. 
  6. Before you leave the doctor’s office double check the section that the doctor has completed to see that he has indicated that you are markedly restricted in any of the areas and has indicated the year that you became disabled. To qualify for the DTC this information must be provided by the doctor and sometimes the information regarding the year of the onset of the disability is overlooked.
  7. When the completed the form is ready to be sent to CRA for processing, take a photocopy of the form for your file and mail the original to CRA at one of the addresses on page 6 of the form. 

Please note that to receive the DTC you or a supporting family member must have paid income tax during the period of disability.  For example if you are collecting Social Assistance, WCB, or have had annual income less than $10,000 chances are you would not have paid any tax and would not receive a refund.  However, if you have a supporting person, ie spouse, parent, or a child (in the case of an elderly parent) and that person has paid tax during your period of disability then your DTC can transfer to that person.

If you paid minimal or no tax during the period of disability Section 2 of the T2201 can be filled out by your supporting person to enable your DTC to transfer to him/her.  By checking the box in Section 3 CRA can adjust all of the applicable years for your supporting person.

When you receive your refund cheque you may want to consider investing into a Registered Disability Savings Plan.  Details regarding this plan are available at

http://www.cra-arc.gc.ca/rdsp/

 If you have questions or encounter issues with your DTC application you can ask your accountant to assist you.  If you have followed all of the steps listed above and gotten to the point of mailing in your application, you have already saved on your accounting fees.  

Do you owe income tax? Here’s how to make paying as easy as 1, 2, 3!

Canada Revenue Agency source: http://www.cra-arc.gc.ca/nwsrm/txtps/2016/tfsk15-eng.html

Did you know?

Most Canadian income tax and benefit returns for 2015 are due on April 30, 2016. However, as this date is a Saturday, the Canada Revenue Agency (CRA) will consider your return as filed on time and your payment to be made on time if the CRA receives your submission or it is postmarked by midnight on May 2, 2016.

Self-employed individuals and their spouses or common-law partners have until June 15, 2016, to file their income tax and benefit return, but any balance owing is still due no later than May 2, 2016.

If you received income that has no tax withheld or does not have enough tax withheld for more than one year, you may have to pay tax by instalments. We will issue you a reminder if we think that you may have to pay by instalments. Failing to pay in full and on time will result in interest charges, and could lead to legal actions by the CRA.

Payment Methods

More and more Canadians are paying their taxes online. When you pay online, you can make your payment anytime, from anywhere! Last year, we received over six million payments from individual filers online.

There are several secure ways to make a payment to the CRA.

Online payment options

  • Online banking:
    1. Sign in to your financial institution's online banking service.
    2. Under 'add a payee', look for CRA (revenue)-(2015)-tax owing, CRA (revenue)-past tax owed, CRA (revenue)-tax instalment or a similar payee and select the one that applies to you.
    3. Be sure to enter your account number (either your social insurance number or business number) carefully to avoid a lost or misapplied payment.
  • Debit card: Use My Payment, the CRA’s online payment service. It allows individuals and businesses to make payments using Interac® Online.
     
  • Credit card: The CRA offers the option of paying taxes using a credit card through a third-party service provider that offers additional payment methods. Third-party providers charge a fee for their service. The CRA may charge you penalties and interest if your payment is late; the CRA receives your payment on the date the service provider sends the funds to the CRA—contact the service provider to find out about processing delays. The only provider that currently offers the credit card option is listed below for your convenience.
     
    • Plastiq (T2 Corporation and T1 Individual)
       
  • Pre-authorized debit: Pre-authorized debit lets you set up a payment to be made from your bank account to the CRA on a pre-set date. You can pay an overdue amount or make instalment payments. You can set up a pre-authorized debit agreement at your convenience using the CRA's My Account service. For more information, go to Pre-authorized debit.

For other payment methods, go to www.cra.gc.ca/payments.

Payment arrangements

If you cannot pay your balance owing by the tax-filing season deadline, you can make a payment arrangement in one of the followings ways:

  • make a pre-authorized debit payment agreement using My Account;
  • call the CRA's TeleArrangement telephone service at 1-866-256-1147; or
  • call the CRA's debt management call centre at 1-888-863-8657 to speak to an agent.

The CRA’s online services make filing and managing your taxes easier

The CRA's online services are fast, easy, and secure. You can use them to help file your income tax and benefit return, make a payment, track the status of your return, register for online mail, apply for child benefits, and more. Access the CRA’s full suite of self-service options—register for My Account at today, and start managing your tax matters online!

Individuals – Tax information

Important Tax Information for Individuals from the Canadian Revenue Agency.
 
Canada Revenue Agency March 30, 2016
 
  1. Protect yourself— tax scams and fraud can cost you
  2. Taxpayers should be vigilant when they are contacted by an organization, either by telephone, mail, text message or email, that claims to be from the Canada Revenue Agency (CRA) requesting personal information such as a social insurance number, credit card number, bank account number, or passport number. These are scams and taxpayers should never respond to these fraudulent communications or click on any of the links provided.
     
  3. Top questions we get at tax time
  4. Every year around tax time, Canadians call the CRA with a variety of questions. See below for our answers to the top questions asked at tax time.
     
  5. Enjoy the benefits of filing on time and online
  6. Filing your income tax and benefit return and paying what you owe on time helps prevent delays in receiving your benefits, and helps you avoid possible interest and penalty charges. To save you time and possibly money, the CRA publishes on its website a list of CRA-certified commercial tax preparation software packages and web applications to help you file your return online, including options that are free.
     
  7. Five things to avoid when filing your return
  8. The CRA has put together a list of some things to avoid this tax-filing season. Follow these tips; they could save you time and money!
     
  9. Video: New to Canada? Learn about taxes
  10. + Are you a newcomer to Canada? This video shows newcomers how the Canadian tax system works and what Canada does with the taxes we pay.
 
CRA Individuals - Tax information
For telephone, fax, and TTY (teletypewriter) numbers and for addresses, go to Contact us.
Canada Revenue Agency
Government of Canada
Ottawa ON K1A 0L5
Canada