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Old 02-19-2022, 11:55 AM   #161
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In honour of another year of Taxes!



Okay, official filing begins on the 21st of February.

Some updates for another unconventional year of tax filings:

1) Work From Home

Obviously this is a big one, if you were working from home you have 2 options available to you.
-
- T777S

This is the simplified WFH Tax credit, you receive a standard credit for every day you worked from home.

This is a simplified method, there is no requirement for employers to fill out the T2200 or T2200S. Just number of days worked from home and you're off to the races.

- T777

This is the full form, it also encompasses other related expenses such as cell phone usage, office expenses, etc.

To qualify for this you will need a T2200 or T2200S signed by your employer depending on the expenses you want to claim. You cannot use form T777 without a signed T2200 from your employer. This is very important.

You will be entitled to deduct, per your employer's sign-off, Utilities, Maintenance and incidental office-related expenses. All of these will be pro-rated by the size of your Working Office Space relative to the total square footage of your home.

2) Employment Travel

Once again, not much has changed in relation to employees requiring to Travel for work, however due to the Pandemic and WFH orders and Travel Restrictions it has been reported that Travel expenses will be looked at more closely by CRA. So make sure you have your T2200 completed and signed and be sure that all claimed Travel expenses are well documented.

3) Eligible Educator School Supply Tax Credit

This is fairly simple and has been in place for one tax season already. If you are a teacher and you buy supplies you are eligible to claim them up to a maximum of $1,000.

HOWEVER! As of this moment this Tax Credit for the 2021 Filing Season has NOT received Royal Assent!

What this means is that if you're a teacher claiming this credit prior to Royal Assent it will be reviewed and potentially denied. You will be requested to provide receipts.

Or you can file your return without claiming this credit and then amend later to apply assuming it receives Royal Assent.

4) Climate Action Incentive

This was included on Tax Returns as a Refundable amount and included in any refund received over the past 2 years but that program has been modified so if you see that reduction in your refund, expect that.

Alright. Happy Taxes everyone.
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Old 02-23-2022, 02:33 PM   #162
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Oh ####, tax time already? That means you are a month or two away from my annual "Sorry I am delinquent with my tax stuff, here is a bottle of scotch" visit.
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Old 02-23-2022, 04:56 PM   #163
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Question...

I was a contractor WFH for the last two years...

In addition to the corp deductions i claim for my home office...can I claim personal tax deductions as well ?
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Old 02-23-2022, 05:44 PM   #164
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Quote:
Originally Posted by Nufy View Post
Question...

I was a contractor WFH for the last two years...

In addition to the corp deductions i claim for my home office...can I claim personal tax deductions as well ?
Interesting question.

Firstly I think that would depend on how you're structured. If you're a sole-prop then the answer to that would be 'No.' You're already getting WFH deductions, so you cant claim twice.

If you're incorporated and claiming home expenses as part of the operation of your business then I think it would depend on how you claim income.

If you structured it so that your corporation pays you a Dividend then again the answer would be 'No.' Because that income is a return on investment rather than 'Employment Income.'

If however you take a T4 from your business or other considered 'Employment Income' then perhaps a case could be made, but that would be a serious grey area. You technically would still be making the same claim twice on the same income. There might be a work-around for it, but I think in the spirit of the claim itself you'd effectively be claiming the same thing twice at two different levels of taxation.

For the potential benefit versus the pain of defending it I'd say no again and would advise against it.
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Old 02-25-2022, 08:44 PM   #165
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Also, I've been asked this a few times recently:

I can do taxes for Canadians anywhere as long as the client can get me the documents.

I have done taxes for Canadians all over the country and the world.

The only places I do not do taxes for is Quebec residents. Simply because the cost/benefit of being registered with Quebec Revenue and purchasing the required software is well in excess of any demand I've ever encountered to file Quebec taxes.
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Old 02-25-2022, 10:05 PM   #166
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Quick question about the RRSP deadline, Locke.

The deadline says March 1. So if I buy RRSPs dated on March 1, 2022 it will count towards the 2021 tax year? Or the last day to do it is on Feb 28?
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Old 02-25-2022, 10:07 PM   #167
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Originally Posted by lazypucker View Post
Quick question about the RRSP deadline, Locke.

The deadline says March 1. So if I buy RRSPs dated on March 1, 2022 it will count towards the 2021 tax year? Or the last day to do it is on Feb 28?
That is correct. But March 1st 2022 is the absolute last day for any contributions to be attributable to the 2021 Tax Year.
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Old 04-24-2022, 04:37 PM   #168
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May 2nd is coming fast...
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Old 04-26-2022, 05:52 PM   #169
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Mr TorqueDog...a pleasure seeing you again so you could admire the beauty of your work!
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Old 04-29-2022, 02:35 PM   #170
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Remember a few posts up when I indicated that the Eligible Educator School Supply Tax Credit had not having received Royal Assent?

Yeah....thats not gone well.

Quote:
'Angry and frustrated' teachers have no idea when they will get their tax refunds

The Canada Revenue Agency (CRA) is holding back approximately 50,000 teachers' tax returns, the agency confirmed with CBC News ó all because of a tax credit they claimed for school supplies purchased for their students.

In what's known as the Eligible Educator School Supply Tax Credit, the federal government has upped the maximum rebate teachers can receive from $150 to $250. The problem is, the increase is included in new legislation (Bill C-8) which has yet to be passed in Parliament.

Until the bill becomes law, teachers who applied for the credit won't be getting their tax refund.

"It's not just the tax credit, it's the whole process of any other refund that they have is now being delayed because their returns are being put aside. And that's just not right," said Sam Hammond, the president of the Canadian Teachers Federation. "Some of them need that money."
https://www.cbc.ca/news/business/tea...turn-1.6433994

The thing is...he's absolutely right.

This is a bigger problem than they are acknowledging.

I have a number of clients who are teachers and I informed them prior to claiming the credit of this problem so they could decide what to do.

What I didnt know at the time was that CRA would not follow their normal path of denying the credit and continuing to process the rest of the return but rather hold up the entire thing.

The problem with that is, if you are banking on the rest of your refund or need your Notice of Assessment for applying for Financing or need the rest of your return processed to determine qualification for other Government Benefits, Credits or Assistance you're not getting any of that either.

So there is a litany of downstream effects being felt here as a consequence.
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Old 05-02-2022, 04:02 PM   #171
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Thanks again for your services Locke. It is greatly appreciated.
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Old 05-02-2022, 05:27 PM   #172
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Originally Posted by Boblobla View Post
Thanks again for your services Locke. It is greatly appreciated.
*Takes a Bow*

That was a piece of work, but I'm really happy we got that taken care of today.
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Old 05-02-2022, 05:28 PM   #173
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That appears to be that for another year. And now...

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Old 12-14-2022, 11:19 AM   #174
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Quick heads up on a new Government subsidy.

Quote:
News release
December 12, 2022 Ottawa, Ontario Canada Revenue Agency

For many Canadians, rising inflation and the high cost of living have made it even more challenging to find a safe and affordable place to call home. Renter households are four times more likely to experience core housing needs than homeowners. That is why the Government of Canada has taken concrete action to help renters who need it most.

Today, the Honourable Diane Lebouthillier, Minister of National Revenue, and the Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, are taking action and announcing that applications for the new one-time top-up to the Canada Housing Benefit are now open. This benefit is a one-time payment of $500 to eligible lower-income renters experiencing housing affordability challenges.

Canadians must meet all the following conditions to be eligible for the new benefit:

have filed a 2021 tax return;
be at least 15 years of age as of December 1, 2022;
be a resident in Canada in 2022 for tax purposes;
have an adjusted family net income of $20,000 or less for individuals, or $35,000 or less for families;
have paid at least 30% of their 2021 adjusted family net income on rent for their principal residence in the 2022 calendar year; and
be able to provide their 2022 address(es) and landlordís contact information.
https://www.canada.ca/en/revenue-age...-now-open.html

Applications can be made on your CRA MyAccount.
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Old 12-14-2022, 12:02 PM   #175
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Hey Locke - what is your average turn around time on business taxes?

Like, say, my YE is September 30. I have all my stuff to you by October 10. When could I expect my taxes to be complete?
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Old 12-14-2022, 12:12 PM   #176
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Originally Posted by Sliver View Post
Hey Locke - what is your average turn around time on business taxes?

Like, say, my YE is September 30. I have all my stuff to you by October 10. When could I expect my taxes to be complete?
Okay good question, I would probably say end of October if not then mid-November.

That really depends on a lot of factors but the wild card there is that Mid-October is my anniversary and a slow period at both of our work, so my wife and I try and take that time off to go on vacation as much as possible.

So there would likely be a couple weeks in October where I'd be MIA.

But my YE is November 30, so if I got work in October I'd be doing my damnedest to get it done before my own YE.
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Old 12-14-2022, 12:40 PM   #177
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Good to know, thanks dude!
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Old 12-14-2022, 12:50 PM   #178
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I need your help, I'll PM you. TIA
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Old 02-20-2023, 12:43 PM   #179
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And the 2022 Tax Filing Season begins...



I've covered most new programs in prior posts and those typically are not done on the tax return itself as much as they rely on your Tax Return information to determine if a Taxpayer qualifies.

Work From Home is still the same, Basic tax credits have been adjusted for inflation, limits have been increased on TFSAs and Home Buyers Programs are still being adjusted.

Keep a lookout for slips relating to the repayment of ineligible COVID benefits, that can be determined to be deducted on your 2022 Return or carried back to prior years depending on the circumstances and provided the taxpayer made the repayment and when.

One of the bigger changes has been the addition of the 'Labour Mobility Deduction.'

Quote:
The LMD provides an eligible tradesperson with a deduction for certain transportation, meals and temporary lodging costs incurred for travelling significant distances to earn income at a temporary work location from temporary employment in construction activities during the 2022 and subsequent taxation years.
Quote:
An eligible temporary relocation for purposes of the LMD is a relocation undertaken to enable the taxpayer to perform their duties of employment as an eligible tradesperson at one or more temporary work location(s) situated in the same locality. Before the relocation, the taxpayer must have ordinarily resided at a residence in Canada and must have been required by their employment, at the temporary work location(s), to be away from this residence for at least 36 hours. In addition, both the temporary work location(s) and all of the temporary lodging must be in Canada and the temporary lodging must be at least 150km closer than the taxpayerís residence to the temporary work location for the relocation to be considered an eligible temporary relocation.
https://www.canada.ca/en/revenue-age...deduction.html

Thats about it for now, Happy Taxing everybody!
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Old 02-27-2023, 08:50 AM   #180
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Hey Locke, are you available to do any more returns? We experienced a family move (BC to AB) and a house sale. The lawyer in BC said we could write off a bunch of lawyer fees and relocation related things. Other than that, our returns are really straight forward.
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