I have a small business. Can you do my taxes too?

Yes, we perform year-end taxation services for individuals and small to medium sized businesses. 

When is the deadline?

Normally, personal taxes are due midnight April 30th, 2020, Small Businesses (including Rentals) are due June 15th, 2020. To avoid interest charges, your income tax should always be paid by April 30th (for both personal and small business taxes). However, due to recent events with COVID-19, please refer to our information page regarding changes with dates and deadlines.

Oops! I missed the deadline!

Don’t worry, you can still file, however it can delay your credits and benefits. Also both parties need to file a return to qualify for the benefits and credit, including the Canadian Child Credit

If we are a family, should we file our taxes together?

It is always best to file all parties together. There may be items that can be transferred or benefits and/credits that may be missed otherwise.

My mother lives with me and relies on me financially, can I claim her as a dependant?

Children are most often thought of as dependants for tax purposes, but other relatives can also qualify as dependants. Generally, if the person lives with you and relies on you for financial and physical support, you may be able to claim them as a dependant.

Can I include my son/daughter in the appointment?

Bringing your next of kin during your tax appointment will familiarize them with your tax situation and can really help you out if the need arises! Financial awareness can and really should start at an early age.

My child is attending college, can I claim that?

If your daughter or son is attending university or college there are great benefits you can take advantage of. The student must download their T2202A from their student website and sign part 2 of the form in order to transfer to a parent. The student MUST claim this tuition on THEIR return - and then can transfer up to $5,000 to a parent. You will also require the students NET income in order to transfer this credit. 

My child is renting a place while in university…

Students may claim their rent (except residence) Ontario is the only province that allows rent/property tax claims. 

Students are very often audited for rent receipts. A letter from the landlord confirming the students name, address of the rental unit and amount of rent received for the period resided there is usually sufficient. 

What is the difference between separated and common-law?

CRA’s Marital Status Definitions: 

Separated from marriage: a breakdown in marriage resulting in both parties living in separate residences. 

Separated from common-law: same as above but must be 90 days prior to filing your tax return, so if you separate late December, consider waiting 90 days after separation date to avoid confusion with CRA. 

Involuntary separation: a couple separated due to illness. If one spouse is admitted to a long term facility, the couple can claim involuntarily separated; each is now able to claim Ontario Trillium benefits. 

Single or Common-Law? If you have resided together for a 12 month period *OR* immediately upon the birth of a child, CRA indicates you must file as common law. 

Did you know?

Canada Revenue Agency is actively investigating eligible dependant deduction through address matching programs with utility and phone companies, and now has even been searching through Facebook and other Social media accounts. So if you have a “Happy Anniversary to the most wonderful Hubby” posts and photos etc. it will likely raise an eyebrow if you filed as single. 

How much income can I claim if I also made money in Europe?

You must claim all your world income on your income tax return. There have been clients who have asked us how much income they should claim; the answer is all of it. By law we cannot change your income based on your wishes. 

Cloud Accounting and Workflow Management abides strictly by the Canadian
Income Tax Act and will not under any circumstances comply with any client who wishes to file their income tax return otherwise. 

Audits - Why are they picking on me?

Prior to E-file submission, taxpayers would send in all receipts with their return. These returns would take up to 3 months to be processed and then they would receive their refund. Now, with E-file, they don’t see any receipts at all until they ask for them. Canada Revenue Agency assures that they randomly select returns for review. 

What are the most commonly reviewed claims?

  • Eligible Dependant Amount

  • Donations

  • Medical

  • Union/Professional Dues

  • Moving Expenses

  • Employment Expenses

Capital Gains

If your investor sold or “moved” investments around, you will be claiming capital gains. Many investment companies supply a trading summary which only indicates the proceeds of the sales. Please ensure that your investment company issues a GAINS/LOSS sheet which lists both the proceeds and cost of investment so that you won't be claiming the full proceeds as capital gains. As it delays the appointment, an additional $40 will be added if we need to track down information from the investment company. 

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