Category Archives: Did you know???

2015 Income tax rates

Canadian Tax Brackets 2015 | Income Tax Bracketsimages 2

  • 15% on the first $44,701 of taxable income
  • 22% on the next $44,702 of taxable income (on the portion of taxable income between $44,702 and $89,401)
  • 26%on the next $89,402 of taxable income (on the portion of taxable income between $89,402 and $138,586)
  • 29% of taxable income over $138,586

TFSA Contribution Information for 2013

The TFSA account contribution limit is going up from $5,000 a year ago to $5,500 for 2013.

Canadians will also see certain income tax and benefit amounts increase two per cent for inflation.

The federal tax bracket thresholds will all increase by two per cent, with the top bracket of 29 per cent not kicking in until taxable income of $135,054 for 2013, up from $132,406 for 2012.

Amounts for several non-refundable tax credits also increase, including the basic personal amount which will stand at $11,038, up from $10,822.

In Alberta, seniors and those who live with them will also be able to take full advantage of the Healthy Homes Renovation Tax Credit that allows people to claim up to $10,000 worth of eligible home improvements that was announced late in 2012.

“Unless someone had a renovation that they were planning to do, they weren’t going to squeeze that in,” Safar said of the measure which could save you up to $1,500.

RRSP Deadline 2015 for 2014 RRSP Contribution

RRSP Deadline 2015 for 2014 Tax Year: March 01, 2015

Your RRSP deadline for contributing to your RRSP for the 2014 tax year has to be before March 01, 2015.

You may contribute to your RRSP until December 31 of the year in which you reach age 71. The following limits and deadlines apply annually.

Maximum Annual RRSP Contribution Limits

Year Contribution limit
2011 $22,450
2012 $22,970
2013 $23,820
2014 $24,270
2015 $24,930

Your allowable RRSP contribution for the current year is the lower of:

  • 18% of your earned income from the previous year, or
  • The maximum annual contribution limit for the taxation year, or
  • The remaining limit after any company sponsored pension plan contributions.

Earned income includes salary or wages, alimony received, and rental income, among other income sources, but does not include items such as investment income.

Company Pension Plan or Deferred Profit Sharing Plan – As a member of a company–sponsored registered pension plan or deferred profit sharing plan, the amount that you can contribute to your RRSP must be reduced by the total value of the pension credits you earned for the year.

This amount is referred to as a pension adjustment (PA) and it is reported on the T4 slip (Statement of Remuneration Paid) that you receive from your employer.

Annual Contribution Deadline – To be eligible for an RRSP deduction in a specific taxation year, you can make contributions anytime during the year, or up to 60 days into the following year.


Tracking your Mileage

Track Your Mileage

During the course of a year, many of us will use our own vehicle for business purposes. But what exactly makes up the total expense we can claim on our taxes?

You can claim the full amount of:

  • Parking fees, and
  • Supplementary business insurance on your vehicle

And you can claim the business use of:

  • Licence and registration fees,
  • Fuel and oil costs,
  • Insurance,
  • Maintenance costs,
  • Interest on money borrowed to buy a vehicle, and
  • Leasing costs

Now this is where it is very important to track your mileage.  Since only the amounts of business use can be claimed for the second list, you need to know how many kilometers of your total number of kilometers in the year are for business use.

Luckily, there are easy ways of tracking this!

For those who are tech savvy, there are apps you can download to your mobile device that will use GPS and track the distance you travel. Milebug is an app that I use on my iPhone.

There are also log books you can keep in your vehicle to record your business mileage.


CRA Requirements for Invoices

The CRA’s requirements for invoices depend on the total sale amount.

For sales Under $30, there are 3 pieces of information:
– The name of the business
– The invoice date
– The total amount paid

For sales Between $30 and $149.99, include the above 3 points, plus:
– The total amount of HST/GST charged on the sale
– If the sale has items taxed at different rates, you must show the break-down of the amount of tax at each rate
– The business number of the business issuing the invoice

For sales Over $150, all points above must be included, plus:
– A brief description of the goods or services
– Terms of payment


Tax Tips from Revenue Canada

Tax Tip: Top 10 ways to reduce your tax bill

Did you know…There are a number of ways to reduce the amount of tax you owe and keep more money in your pocket at tax time. The Canada Revenue Agency (CRA) can help you learn more about the various credits and deductions that you may be entitled to and that can save you money when you file your 2011 income tax and benefit return.

Important facts

For individuals:

1. Plan ahead – Register for My Account, gather your receipts and NETFILE access code, and sign up for direct deposit before April 30. Submitting your income tax and benefit return before the tax-filing deadline means you can avoid having to pay late-filing penalties.

2. Families – Save those receipts! All the activities you have been paying for throughout the year (piano, karate, tutoring, hockey, and more) may save you money at tax time.

3. Tax-free savings account – A tax-free savings account (TFSA) is one great way to save money since you don’t pay tax on any income you earn from investments in your TFSA.

4. Registered retirement savings plan – Any income that you earn in a registered retirement savings plan (RRSP) is exempt from tax, as long as the funds stay in the plan. RRSPs help you save for your retirement and give you a break at tax time too.

5. Public transit tax credit – If you or someone in your family is a regular user of public transit, then you may be able to claim a non-refundable tax credit based on the cost of eligible transit passes.

6. Pension income splitting – If you receive income from a pension, you can split up to 50% of eligible pension income with your spouse or common-law partner to reduce the taxes that you pay.

7. Students – Are you still in school? Students can claim the tuition, education, and textbook amounts. Have you graduated recently? You may be eligible to claim the interest that you paid on your student loans.

8. Child care expenses – If you have children, you may be able to claim child care expenses that you or your spouse or common-law partner paid so that either of you could work, do research, or go to school.

9. Home buyer’s tax credit – If you’re a first-time home buyer you may be eligible to claim $5,000 on the purchase of your new home, which can save you up to $750.

For people who are self-employed:

10. Hiring an apprentice – Did your business employ an apprentice? A salary paid to an employee registered in a prescribed trade in the first two years of his or her apprenticeship contract qualifies for a non-refundable tax credit for the employer.

For the full post please visit the CRA web site.


GST Remittances & Information

Goods and services tax (GST 5%) is a tax that applies on most supplies of goods and services made in Canada. Examples of goods and services for which GST is not charged and collected include:

• Used residential housing

• Long-term residential accommodation

• Most health, medical, and dental services

• Child-care services

• Most domestic ferry services

• Legal aid services

• Many educational services or tutoring services

• Music lessons

• Most services provided by financial institutions

• Insurance policies

• Most goods and services provided by charities

Certain goods and services provided by non-profit organizations, governments, and other public service bodies.

Companies which provide taxable supplies in Canada, and have total revenues from taxable supplies of $30,000 or more in the last four consecutive calendar quarters must register for GST. When registering for GST, the reporting period should be the same as your fiscal year for income tax purposes. Input Tax Credits (ITC’s) can be claimed on the GST return to recover GST paid or owed on purchases and expenses for the business. When completing the GST return, deduct the total Input tax credits (ITC’s) for the reporting period from the GST collected and the result would be the net GST Refund (or payable ).

For companies with $500,000 or less in annual taxable revenues, there is an option to either have a quarterly reporting period or an annual reporting period. If your reporting period is monthly or quarterly, the filing and remittance deadline is one month after the end of the reporting period. If your reporting period is annual, the filing and remittance deadline is usually three months after the end of the reporting period.

For annual filers, if your net tax for the current or previous quarter is less than $3000, then paying quarterly installments is not necessary. For those who need to make installment payments, the deadline is one month after your fiscal quarter end date.

Effective July 1, 2010, GST 5% is replaced by Harmonized Sales Tax (HST) 12% in the province of British Columbia and HST 13% in the province of Ontario.


RRSP Information

The Year you turn 71 is the last year in which you can make a contribution to your RRSP. You can contribute to an RRSP under which your spouse or common-law partner is the annuitant until the end of the year your spouse or common-law partner turns 71.


QuickBooks 2014

If you are using QuickBooks 2009 or older, many of your QuickBooks services are about to expire. As of May 31, 2012, some of the key services from the 2009 edition will no longer be available, as part of the QuickBooks Discontinuation Policy. These services include:

  • Online banking
  • Technical support
  • Billing Solution
  • Merchant services
  • Payroll services

ALL-PRO Bookkeeping wants to be able to provide you with the support and services to help you work more efficiently. Intuit regularly improves and evolves their software, and while they support the current version and two versions back, you may want to take this chance to get as current as possible and get a great discount.

If you’re purchasing QuickBooks for three users, you’ll want to take advantage of this discount: a purchase of QuickBooks Accountant 2014 for three users is just $549. That’s just slightly more than a single copy of the software at its regular price!


Tax Time is fast approaching

Personal tax returns are due to be filed by April 30th every year, we all know that, right? What you may not know is that, if you have self-employment income during the tax year (if you run your own small business for example), you AND your spouse don’t have to file your tax returns until June 15th. Pretty awesome, right? An extra month and a half to get your taxes in!

Here’s the funny part…. you don’t have to FILE your tax returns until June 15th, but if you have a balance owing for the tax year, you still have to PAY your taxes by April 30th.


Seriously, yup…most people I know need to have their taxes prepared before they know whether they have a refund or a balance owing. It’s not something you can just rattle off on a calculator, and if you’re going to do your taxes before April 30th, you might as well file them too!

So before you go ahead and wait until June to file your tax return, you better make darn sure that you have a refund coming. Because if you don’t, you’ll be paying interest on the balance that you owe for every day after April 30th that you don’t pay.

The moral of my story?: Why wait? The sooner you get your taxes done, the better.

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