Frequently Asked Questions

  • Can I write off my student loan interest?
  • Income Slips
  • The DTC (Disability Tax Credit)
  • At what age should my child start filing taxes?
  • Am I being taxed enough?
  • Why is CRA holding my benefits/credits or tax returns?

YES you can!! In late February your lender should have them finalized and you should be able logon to your loan page (NSLSC, Student Aid or Private lender) and pull your year end statements.

If you had forgotten about you student loan interest please bring it to the attention of your tax professional and see if it would be worth requesting an adjustment.

Have an awesome day, drive safe and stay warm!

CRA will send out your CPP, OAS, GIS and other provincial income slips near then end of February, slips must be completed and mailed by the last day of February.

Child tax, GST, and other benefits are NON TAXABLE. The UCCB was cut a few years ago and was combined with the CCB so you will no longer be waiting for that slip.

If you collected EI you will need to login into your service Canada account and pull it off there as they no longer mail them out.

If you have moved and think you may be missing income slips please notify your tax professional so they can pull them for you. You will need to sign a consent form for us to do this on your behalf. You can also call 1-800-959-8281 to change your address and have them mail you copies.

Please note that the deadline for slips to be mailed is the last day of February, that does not mean you will receive them by the last day. Please be patient and ensure you have ALL your slips to avoid a reassessment.

Cheers!

The DTC is for individuals who have either a physical or mental disability (ie: MS, MD, Fibro, ADHD, PTSD) In order for you, or your child, to qualify you must print form T2201 off CRA's website, fill in your portion of the form and then take it to your doctor to have them fill in their portion and sign off on your ailment. Some doctors are hesitant to fill in this form but please don't let them talk you out of it or discourage you from trying.
Once the form is filled in you send it in to CRA so they can process the form. Please know that this can be a lengthy and tedious process, anywhere from 6-16 weeks.

This credit has been wonderful for those that have been able to crack through CRA's finicky and selective process and not so great for those that have to fight to be approved.

Over the last couple of years CRA cracked down on DTC applicants and it is very frustrating for myself but more for my clients. CRA has rejected applicants for the non-physical ailments ie: fibro, ADHD, PTSD etc. they have stated that they do not feel that these ailments restrict enough to be eligible for the DTC and I HIGHLY disagree. PLEASE do not give up on your claim if CRA says no, call me and I will help you fight!!

For more information on the DTC and to print the form please visit:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4064/disability-related-information-2016.html?fbclid=IwAR2BNVC8Wth6EUU_i31OEpphZsu3E2UxRJFEjg-i3LyWI_cP3hG9xXy2mE4

Personally I have my kids file as soon as they get their first job, they usually don't get more than 10$ back but that is 10$ they didn't have before and gets them in the habit of filing taxes.

Once they are 18 they should definitely file so that when they turn 19 they start receiving the government credits such as the GST.

Hope you all have an excellent day!

This is definitely one of the most FAQ and I am so glad that people reach out and ask me because it has saved many of my clients from paying.

The answer is based on a few different factors like spousal income, rental income, side hustle income, proper deductions and various other expenses.

A quick calculation to see if you are being taxed enough at source is to take the tax deducted and divide it by your gross income, if this number is below 20 you are not being taxed enough (in my opinion).

2019 Federal tax brackets are posted below and you should be taxed according to your estimated annual income.

Please review this a few times a year to ensure you are being taxed appropriately and if you don't think you are please go speak to payroll and have them take a little bit extra to cover you!

**You should also be filling out new TD1 and provincial/territorial forms every January**

If you would like more information on this or any other tax tip I've posted please shoot me a message or email and I will be happy to help.

Until next time, have an awesome day!!

Original Post: https://www.facebook.com/PhoenixAccountingLeth/photos/a.391608807561948/2876564535733017/?type=3&theater

CRA has many reasons for holding people's money but I will give you a list of the most frequent reasons why.

1) You've moved but forgot to tell CRA. Government mail cannot be forwarded like regular mail so it will be returned to CRA and they will place a hold on your money until you call and inform them of the change.

2) A change of marital status. If your status has changed and only 1 of you have called to inform CRA they will hold funds until the other party calls in and gives them the same info.

3) Late or unfiled returns.

4) If you have filed but your partner has not that will also cause a hold on funds.

5) You have an outstanding debt with any government agency (E.I, Child support, fines, outstanding student loans etc)

6) Non-compliant Business accounts (GST, Payroll etc) If you are behind on filing your source deductions, GST or Corporate returns they will hold your personal until your accounts are compliant.

**this is a big one**
7) Old business accounts you thought you closed but didn't. If you had a small business in the past and forgot about it and think CRA might have as well, they didn't. They will wait about 3-5 years and then hold your funds. Please make sure that all of your accounts are closed with CRA when you are closing your business.

If you are unsure if you fall under any of the above categories please speak to your tax professional and see if they can pull the info prior to filing.

Until next time, have an awesome day!!

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