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Canadian Income Tax Calculator 2014

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There are big savings for filing on time even if you can't pay all your taxes right away.

Find out how much 2013 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2013, 2012, 2011, 2010 or 2009 see our

Don't forget to file your taxes on time. There are big savings by filing on time, even if you can't pay all your taxes right away.

These calculations do not include non-refundable tax credits other than the basic personal tax credit.

Your annual taxable income excluding income from investment such as capital gains and dividends.

1x

Capital gains are profits which result from a disposition of a capital asset including land, buildings, shares, bonds, fund and trust units, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.

50%

Generally, eligible dividends are dividends you have received from big, public companies.

1,38x

Generally, ineligible dividends are dividends you've received from smaller, private companies.

1,18x
Deduction Claimed for Current Year
PROVINCE
TAX CREDIT
TAX PAYABLE
AFTER TAX INCOME
AVERAGE TAX RATE
MARGINAL TAX RATE

These rates give you a basic of idea of how much tax you should pay, but depending on your employment and business and personal circumstances you could pay a lot less. Be sure to visit a competent tax advisor before filing your return.

The RRSP contribution limit is based on 2013 maximum contribution limits. This actual contribution limit may be higher if there are unused RRSP contributions from prior years.

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454 Comments

  1. James 09/27/2012 at 6:43 pm

    Hi,

    I have been recruited by a company in New Brunswick area, I got my paycheck but was confused how exactly tax was deducted
    my package includes 80000 + 12000 (House allowance p.a) + 7200 (p.a per anum for daily allowance)

    My first question - Is House allowance and Per day allowance taxable ?

    My second question , how much will be my monthly take home pay according to your calculation ? How much will be my Income Tax, EI and CPP from above figures ? I mean the percentages ?

    Thanks,

  2. Hi James,

    Yes, all payments you receive, unless otherwise specified in your employment agreement are taxable in your hands.

    Using the calculator above, your annualised income tax liability would be $28,128 (average tax rate of 28.35%). CPP (4.95%) and EI (1.83%) deductions would total approximately another 5.75%.

    Not considering any other employer related deductions, the statutory deductions would total 34.1%.

    Please note that you do not mention you country of origin, you should also consider any tax consequences there may be for reporting your Canadian income to your home country.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    link to
    647 367 3477
    Twitter: @Storoszko_Assoc

  3. Amy 10/05/2012 at 1:38 pm

    Hello,

    My boyfriend is a contractor. For the past 5 years, he has been working but not filing taxes. He keeps no record of any income, how does he find out what he owes in taxes with virtually no record?

  4. Hi Amy,

    If your boyfriend was working legally - via a paycheque, he can contact the companies he worked for to obtain the information.

    If your boyfriend worked under the table, a source for the income would be his bank statements to total up the deposits he made.

    By not filing his tax returns, your boyfriend may have avoided paying income tax, but he also screwed himself out of his future Canada Pension when he retires - the CPP payout is determined from tax returns.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  5. Bassem 01/09/2013 at 7:32 pm

    I am a PR holder, I just landed in December 2012, but I am not planning to live in Canada before a year from now, I am working overseas, do I have to pay any taxes? And if I get my salary transferred every month to my Canadian account will I have to pay taxes in Canada?
    My wife lives with me outside Canada, she doesn't work and I have 2 kids (6 years old and 3 years old), they live with us outside Canada as well.

  6. Hi Bassem,

    For 2012, you are not required to file a Canadian Income Tax Return, if you do not have ANY Canadian sourced income, as you were not a tax resident for 2012.

    For future years, income tax liability is based on residency and ties to Canada. Unfortunately, without knowing your status a year hence, a comment cannot be provided to you at this time.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  7. Mike 01/13/2013 at 1:14 pm

    I am student who started a co-op term in January 2012 and worked for the whole year (8 months were considered 'co-op', the last 4 were just work), making ~$40,000. I have a lot of unused tax credits from past tuition which I was unable to use before (~$10,000). I paid about $6000 in income tax and was wondering if I will be able to get that full amount back when I do my taxes.

  8. Hi Mike,

    Unfortunately, the only way you`d be able to get back all the tax withheld from your pay during 2012 is if you have tuition credits of more than $40,000.

    You will get a refund, but not $6,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  9. John 01/17/2013 at 2:47 pm

    Hello, I am currently making 32,000 a year (in 2012) in Quebec. After taxes, I make 472.00$ roughly a week. According to your calculator, I should be paying 6,033.00$ a year, but when I divide that by 52 weeks, it comes to 116.00$ a week, giving me a smaller number than the actually deductions that I receive on each paycheque. Seems I am being over taxed. Also, when I do overtime it comes to 23.07$ and hour, but after taxes I am only currently clearing 8.95$. Is that normal to loose over 60% of every hour of overtime I make to taxes? They say I get it back on y income tax, though who wants to wait from January until May of the following year to collect the money? They say the only solution is either it stays the same or I ask to not be taxed at all and then pay it when I file my income taxes. Doesn't seem right.

  10. Hi John,

    The income tax withholding amount is based on the idea a little extra is collected from you so you do not have a balance payable at the end of the year, basically if calculated correctly, you will get a refund.

    Overtime payments are taxed as if they were regular wages at the higher tax rate, that is why it seems so much tax is withheld when overtime payment is received.

    Contrary to what 'they' say, you cannot choose to not pay the tax now and wait until filing to pay your balance due. You are eligible to request your employer to deduct less tax based on your tax deductions for the new year. This is done via the TD1 form or by Letter of Authority: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  11. matt 03/27/2013 at 5:22 pm

    Hello,

    Last year i earned roughly $15000(i only worked for 6 months) my employers deducted no tax. I live in Ontario and over 25 and am working as a contractor. I need to write some stuff off but im worried that im going to get dinged for taxes this year. also i've added $3000 to RRSP's last year.

    Could you give me a ball park figure of what my taxes should be this year.

    Thanks and much appreciated, Matt

  12. Hi Matt,

    Yes, you are going to be dinged... enter your total income into the calculator above to determine your tax liability, to that add 10% of your gross income for CPP and this will be your total amount due in taxes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  13. Mark 04/01/2013 at 11:01 pm

    This is an amazing website, thanks for providing it! This particular post is

    excellent as are your answers to the many questions, thanks for providing it!

    My wife and I have owned 4 investment properties for about the past 5 years. My income has been about 4 to 9 times that of my wife's

    income for the past 25 years or so. All of the investment properties and our principal residence are only in my wife's name, since I am

    self employed and don't want any issues if I ever had a major judgment against me to protect the equity in those properties and our

    principal residence. We purchased all the properties with 20% cash downpayment from our savings. Income and expenses are all deposited

    and withdrawn from a separate joint bank account.

    I've been claiming 100% of the income/losses each year on my tax form. I'm the only person who has submitted T766 forms for each property.

    My wife is no longer working and I would like to push some of the future income/losses over to her income tax form by changing my

    percentage ownership from 100% to 50/50 as a co-owner. CRA states on bulletin IT-550 "you cannot change the percentage of the rental

    income or loss you report each year unless the percentage of your ownership in the property changes" so my question is this - am I allowed

    to change the percentage ownership now to 50/50 with my wife? Do you think if I do it will trigger an audit? Do you think that if I

    change the percentage ownership as co-owners to 50/50 that CRA will require me to amend all my previous 4 or 5 years of tax returns to show

    50/50? (this amendment would result in me owing money to CRA due to less losses in some of the last 5 years on my tax returns). I would

    only make this change of ownership from 100% to 50/50 once and was thinking of changing only 2 of the investment properties in 2012 our tax

    forms and then the other 2 properties in our 2013 tax filings. What do you think I should do? Thank you! Mark

  14. Hi Mark,

    You have a problem on your hands... if the investment properties are in your wife's name, the income/loss of those properties belong 100% to your wife.

    In actuality, because you both shared purchasing the properties, the properties should be registered in both names, but because you placed the properties in your wife's name she is the legal owner. You may have placed the properties into your wife's name to protect them from potential liability from your self-employment, but you can actually lose more if she was to divorce you as the property is not in shared ownership.

    My suggestion to you is to amend the past tax returns for yourself and your wife to reflect the correct ownership (100% your wife) and then have the properties registered in both names... then you can change the ownership to 50/50 for 2013. Your wife may also face tax consequences (capital gain) by transferring the ownership to jointly with you as this would be considered a partial disposition.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  15. Sebastian 04/23/2013 at 8:46 pm

    Hi ,in 2012 i was not a permanent resident yet, but i had a work permit. I worked all year as a contractor, because my boss didnt gAVE me a T4. I did the sam eduring 2011 but i eneded up not having any balance due. This year, however i owe 2212. I became a resident in july last year and then applied for university, which i started in january this year and so , i admit irresponsibly, i ddint not save any money., I start to work again this week, with the same emplyer(frankly im happy there and i dont mind doing my own taxes)but i wont have the 2212$ on time.My question is, how high is the interest charged? i already filed my return form but wont b abel to pay the full amount.As far as i could read i dont qualify for interest exemption, but after a month or less i would b able to pay my tax debt as i will b employed again for the summer(not anymore for the year as i will start school again on september) Will the amount change drastically in a month with the monthly compnded interest(for which i dont know what perentage they are using)? or am i better off asking money from a friend now, pay the debt to CRA and then just pay back to my friend? if the interest wont go to high i dont mind paying CRA in a month or so, but im scared that my debt wil go from 2000 to 5000. Thnaks for your time.

  16. Hi Sebastian,

    In addition to late filing penalties (10%), the interest (10%) charged accrues and compounds until the balance is paid off.

    Non-filing or non-payment of tax liability is not an excusable issue.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  17. Maria 04/27/2013 at 6:56 pm

    Hi,

    I live in Calgary Alberta, I childcare from home, my income for work varies, but last year was $4,500 & I am not starting a new job that will pay $1200 a month, how much should I allow for CPP, EI and RRSP, it may amount to less than $20,000 a year, with both jobs. Thanks (my husband works full time & I am also a dependant & with our 6 year old daughter) will my income effect his income, should he talk with his Human Resources', or just wait till tax time next year, we don't want to owe any. Thanks

  18. Hi Maria,

    If you are starting a new job, your employer will calculate and deduct CPP, EI and taxes. If you are not working for an employer, your should hold back 25% of your earnings to cover the deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  19. Mike 04/29/2013 at 7:34 pm

    If you live in Canada, but have a source of US income, is the worldwide income used to determine your marginal tax rate? Or is only the Canadian income used to determine marginal tax rate?

  20. Hi Mike,

    Your marginal tax rate is based on your world wide income, not just the Canadian portion.

    Additionally, any taxes paid in the US are refundable to you in Canada on your Canadian tax return. As you know, with US income, you must file an US tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  21. GUNTER 05/13/2013 at 9:11 pm

    Hi folks:

    I am a Canadian citizen and a resident of the US. Cashed out my life insurance with London Life and they deducted both Ottawa and quebec taxes because I was a resident of Montreal when the policy was taken out in the sixties.

    Do I have to pay both or can I get a refund from Ottawa for the Quebec part?

  22. Hi Gunther,

    The income tax was withheld because you are a non-resident of Canada. For you to apply for the federal and provincial refunds, you would need to file a Federal Tax Return and a Quebec Tax Return.

    Depending upon, the type of tax withheld, you may be able to apply for a refund through your US tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  23. Murray C 05/27/2013 at 6:40 pm

    Several months ago I invested in an offshore fund. The fund particulars are:

    * The company [management] is incorporated in Bermuda as a mutual fund and is registered as a segregated accounts company.
    * The fund is a Segregated Account constituted as shares in the company.
    * The goal of the fund is to achieve capital growth through investment in global financial currency markets.

    My question regarding the above:

    I can only realize capital gains in this fund by selling (i.e. redeeming at Net Asset Value per share). No gains are ever distributed to me since I own shares of one account. How would I be taxed?

    Thank you in advance for your answer.

  24. Hi Murray,

    Beware, if this is a ponzi scheme, there is no tax relief.

    If this is a valid investment, it would be treated just as if it were a Canadian based mutual fund/capital stock investment. If there are no distributions of income prior to redemption, any gain realised (as well as any currency exchange gain/loss) at redemption would be a capital gain of which 50% would be taxable on your Canadian tax return in the year of redemption.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  25. Dick 05/28/2013 at 4:22 pm

    I am a professional athlete who is a citizen of the U.S. and filing a non resident tax return in Canada.I received a signing bonus which is subject to a 15% tax per the U.S. and Canada tax treaty. I received a T4A-NR tax notice with my bonus noted in box 18 and the correct 15% tax in box 22. My questions are: do I have to include the signing bonus income in my tax return (I have other T4 income)? Seems logical since I have already paid the 15% tax and it would be a "wash". When I attempt to fill out a return using multiple SW packages, I get taxed at a much higher rate that if the bonus was not included. That given, if I have to included the bonus, on what lines do I show the bonus and tax paid?

  26. Hi Dick,

    To ensure you get the maximum exemptions and deductions available, you may wish to consider contacting a firm, such as ours, to assist you in your cross border tax preparation needs at reasonable rates.

    That being said, depending on the year of issue of the NRT (2012 or 2013) slips, you may not be using the correct year of software causing different rates or it could be that you are following the directions for tax residents vs non-tax residents.

    For you to get credit for the tax paid in Canada, assuming US is your tax home, you do need to file a Canadian tax return so you can claim the credits on your US tax return.

    At this time, I will assume the NRT slips are for 2012. The process you needed to take was to first file a 2012 Canadian tax return and the provide the Canadian tax assessment on your US federal and state tax returns for your tax credit. Depending on the info you enter to the software, it may be higher or lower across the different packages.

    If the NRT slips are dated 2013 for monies received in 2013, you must file 2013 tax return and those calculations and files are not available until early next year.

    Regardless of type of monies received, ie. signing bonus vs contract pay all income is taxable and considered employment income and entered as such.

    Depending on your contract, you may be eligible for employment deductions even though you are a non-resident. Taking advantage of this will reduce any tax liability.

    All tax withheld is reported on the tax withheld line... and standard items.

    Be careful using an off-the-shelf tax package as it may not be suitable for your tax situation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  27. David 07/27/2013 at 6:53 pm

    While my spouse and I lived together I paid off some of their credit card debt from my savings.

    Last year we were separated (but not yet divorced) and I recieved about $5000 in personal checks to repay what had transpired previously. How do I claim this "income" on my return. (What type of income would I call it) Or is it just money that transfered between bank accounts of spouses?

    Thank you.

  28. Hi David,

    If you worked in Canada and receive compensation, yes, you are required to report this on a Canadian tax return. Any tax payable, if any, at the time of filing is refundable to you by foreign tax credit or your homeland tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  29. Eric 07/31/2013 at 5:35 pm

    Hello,

    My friend who is a Canadian national. He will leave for Hong Kong and will work there for years, but his family will continuously stayed in Canada. He will not maintain any residence in Canada and other connection like bank account. Meanwhile he will pay income tax in Hong Kong. Can he thus declare himself non-taxable resident of Canada?

  30. Hi Eric,

    Firstly, there is no such thing as a non-taxable resident of Canada... your friend is either a taxable resident or taxable non-resident.

    You do not mention what is 'family' in your question... Unless your friend's family (wife, children) live in a hole, they and he will have a residence in Canada.

    Unless your friend cuts all ties to Canada: direct family (wife, children move with him), sell family residence, close all bank accounts and credit cards, relinquish drivers licence and provincial health card... he will remain a taxable resident of Canada.

    It is best for him to obtain an official opinion of his residency from CRA prior to making any tax changes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  31. Ryan 07/31/2013 at 7:41 pm

    Hello,

    My wife and I have been looking after our 2 year old grandson for just over a year. He lives with us and we support all his needs. Can we claim him as a dependant? If so is there anything special we should know or do to make the claim?

    Thanks.

  32. Hi Ryan,

    You are not able to claim your grandson as your dependant, but you may claim the Eligible Dependant amount.

    You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

    - You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
    - You supported a dependant in 2012.
    - You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

    In addition, at the time you met the above conditions, the dependant must also have been either:

    - your parent or grandparent by blood, marriage, common-law partnership, or adoption; or
    - your child, grandchild, brother, or sister, by blood, marriage, common-law partnership, or adoption and under 18 years of age or has an impairment in physical or mental functions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  33. Luc S 08/09/2013 at 3:51 pm

    Hello,

    For my new job in Quebec (I live in Ontario), I had 5 deductions on my pay; QPIP, QPP, Quebec Tax, Fed Tax and EI.

    When it comes time to file my taxes, being that I live in Ontario what will happen to my contributions to the QPP, Quebec Provincial Tax and QPIP?

    Will the QPP count as a contribution to the CPP, the Quebec Provincial Taxes count as contributions to Ontario provincial taxes and the QPIP as over contributions to EI? In which case, anything that goes over what I would've paid in Ontario (as, taxes are lower here as I understand) would then be returned? I am a student who generally receives most if not all my taxes back as I claim my school expenses... so operating under that assumption would I receive back all my Quebec taxes? It's quite a bit more than I pay in Ontario.

    Thank you,

  34. Hi Luc,

    When it comes to tax filing time, when you prepare/file your tax return, you will report your QPP contributions and CRA will make the necessary records to count as your CPP contributions.

    The provincial taxes will be credited and then reflected as recorded for your Ontario income and reported as such.

    Any contributions to QPIP will be credited.

    Ensure you have assistance in preparing your tax return with a reliable tax preparer as not entering the information accurately can result in you losing out on this cross-provincial tax issues.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  35. Jason 08/16/2013 at 11:44 pm

    I currently live in Ottawa, but I'm planning on moving to Gatineau. I do own a small business and have one income.

    My question is, if I move to Gatineau and work still have the small business in Ottawa as well as work in Ottawa. Do I have to pay taxes besides the HST I collect to the government, and do I pay extra taxes in when filing personal income tax?

    I usually pay the personal taxes and HST collected when doing taxes for I don't get pay slips or taxes are deducted from paycheques I get.

    Please help me with my question

    Thank you

  36. Hi Jason,

    If you business is a proprietorship, then the business is reported on your personal tax return.. so, if you move to Gatineau, your business also moves for income tax purposes. If the business is a corporation, it has it's own identity and address.

    If you move and the small business operates in Ontario, you are still responsible for HST collection and reporting.

    Your tax reporting and remittance would not change... you still report on your income tax return, but will be responsible for the additional taxes levied by Revenu Quebec.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  37. Michael 12/07/2013 at 8:26 pm

    Hi,

    We live in Toronto with 3 kids and in-laws. For the last 5 years, we’ve been filing the tax and put in-laws as our dependents. We also paid our in-laws to take care our 3 kids.

    Recently, we got an audit from CRA, and they said we’re not allowed to claim Child Care Expenses (even we provided receipts, etc) because my in-laws are also our dependents.

    Both my MIL & FIL reported their income (from child care) and filed their tax every year (as our dependent). MIL even has to pay few hundred dollar yearly because of that.

    We’ve been using UFILE to prepare our tax return and pretty sure some of tax decisions were decided through ‘Interview’ process from the software – something like claiming for Caregiver (My FIL is 74 y.o and MIL is 60 y.o).

    My question is:
    1. Is it correct that we cannot claim for Child Expense if we paid that to my MIL/FIL because they’re filed as our dependent?

    2. How hard is to go back 5 years back and file them as INDEPENDENT instead? Any implications?

    Thanks!

  38. Hi Michael,

    Unfortunately, you cannot claim child care expenses paid to a dependant as a deduction.

    You have experienced the nuance of how using personal tax software is "user beware" as the software may calculate, but not follow the subtlety of the income tax law.

    It is very simple to revise your tax returns to remove the in-laws as dependants, simply recalculate the tax returns and complete T1 Adjustment Requests for each year.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  39. Cathy 12/07/2013 at 10:03 pm

    Hi,

    I live in ON.

    Went to AB for Job Training to work in ON after training.

    What expenses can I claim at tax time?

  40. Hi Cathy,

    CRA distinguishes training costs into two types:

    1. Capital expenditure
    Where a training or educational course results in a lasting benefit to the taxpayer, the costs incurred in connection with the course are considered to be capital in nature. The deduction of these capital expenditures as current expenses is DISALLOWED; this is because a lasting benefit to the taxpayer is considered to occur where a new skill or qualification for a business is acquired.

    Examples are:

    (a) A medical general practitioner is training to qualify as a specialist.

    (b) A lawyer is taking an engineering course that is unrelated to his or her legal practise.

    2. Current Expenditure
    If a taxpayer takes a training course merely to maintain, update or upgrade an already existing skill or qualification with respect to his or her business or profession, expenses incurred in connection with such a course are not considered to be capital in nature and their deduction as current expenses is ALLOWED. Thus, for example, costs incurred in connection with a course taken to enable a professional to learn the latest methods of carrying on his or her profession may be allowable, even if the course relates to an area of the profession in which the professional was not previously involved actively though qualified to be so involved.

    Examples are:

    (a) A professional development course is taken as required or recommended by a professional body to maintain professional standards.

    (b) A tax course is taken by a lawyer or accountant who is qualified to do tax work, whether or not he or she has previously been actively involved in such work.

    (c) A course on modern building materials is taken by an architect.

    (d) A course on electronic ignitions is taken by the owner of an automobile repair shop.

    In summary: if the training is capital in nature, it is not tax deductible, although if there is a tuition fee receipt from an educational institution, it is deductible as a tuition fee tax credit.

    If the training is current in nature, it is tax deductible as a training expense.

    Where do you report these expenses?

    1. If you are a individual salaried taxpayer, you can report professional development or job-related training costs on line 229 other employment expenses of your T1 form.

    2. If you are self-employed running your own business, you can report this on your T2125 Statement of Business and Professional Activities in Part 5 Net Income (Loss) before adjustments. You can list training expenses under the main category Expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  41. Adarsh 12/07/2013 at 10:17 pm

    Hi,

    I landed in Canada on 18th March 2012. My income during 2012 was 18,819. 49 (employment income 14,598.55 + interest 220.94 + other income 4,000). My spouse reported 5,000 as income on her tax return.

    We have two young boys (aged 14 and 16) living with us.

    Recently I got the reassessment from Canada Revenue saying they have reassessed my expenses. They are not giving me 1,400 for public transit (although I am daily use 2 hours and 30 mins on public transport to office and goes three zones). Also amount of children 3,460 has been revised to zero.

    I don't know how I should present my case as I am having two young boys for whom I am taking care and making expenses.

    Please tell me what I should write. I am new immigrant and low earner presently I cannot afford expenses of accountant. Thanks for your help

  42. Hi Adarsh,

    Canada Revenue does not deny deductions unless they cannot be proven by yourself.

    If the transit deduction was denied, simply provide the eligible receipts as requested by CRA.

    If the child dependant deduction was denied, someone other than yourself claimed your children as dependants.

    Review the Reassessment Letter you received from CRA; it will provide you with all the details and requests for information for CRA to allow the deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  43. Yannick 12/08/2013 at 8:05 pm

    Greetings!

    My wife and I are moving from Quebec to Ontario. Now from looking at your site I understand that we will get a generous tax refund based on all the income taxes we paid in QC compared to ON. Now in QC, we’ve submitted the amount we are paying monthly for daycare and are receiving provincial gouv help/compensation as part of their program to avoid people having to pay all year and wait for income tax return. What will happen with that when we enter the amount we paid for daycare (approx 5k) but the gouv of QC already refunded a good chunk of it?

  44. Hi Yannick,

    Depending on how you state your residency and claims on your tax return, you possibly may be required to repay a portion or the full amount of the advance tax refund for daycare expenses.

    This will all depend on your move date as Revenu Quebec will consider you moving after July 1 of the year as still a resident on Quebec and require you to file your tax return accordingly, or you'll pay the advance refund back.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  45. chaki 12/08/2013 at 8:19 pm

    Hi,

    I live in Ontario but work in Quebec.

    When I file my taxes in Ontario, would I have anything to pay or would I receive refunds from Quebec.

    Thanks

  46. Hi Chaki,

    The income tax rate for Quebec is higher than for Ontario, so you should be in a receivable position, but it would depend on how your Quebec employer calculates your deductions as an Ontario resident.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  47. Anna 12/08/2013 at 10:23 pm

    I am a Canadian and just won an on-line recipe contest in the United States for $300.00. How much tax liability must I pay in order to receive this prize? Thank you so much for your response!

  48. Carrie 12/08/2013 at 10:24 pm

    We sent off an employee to work in the US for more than a year. They are Canadian resident, and incurred a tax penalty in the US while they were there. The tax was incurred because of working for us, so can we account it as a business tax penalty?

  49. iyah r. 12/08/2013 at 10:27 pm

    Hi,

    I’ve been offered a job as a consultant in Calgary and will be treated as an independent contractor, and not as an employee. This is my first ever consulting job and I don’t own any business or so. The agreement between the company and I is that I shall be responsible for the payment of all federal and provincial taxes that will accrue due to the payments that the company will make. Also, I shall be responsible to provide workers’ compensation insurance and liability insurance. The question I have are the following:
    Does this mean that I am considered as self-employed?
    Do I have to register a new business (sole proprietorship) or could I just stay as an individual entity and file my taxes the same as a regular employee? Which one would be more beneficial to me?

  50. Hi Anna,

    You would not be required to pay any tax to receive your prize. The company awarding the prize may withhold 15% tax as you are a non-resident of US, but nothing else.

    If you are requested to pay tax, DO NOT RESPOND as this would be a fraud scheme.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  51. Hi Carrie,

    What tax penalty was incurred? If a Canadian company was paying a Canadian employee to work in the US, the income would not be taxable in the US unless the employee may inaccurate statements.

    I recommend you consult with a cross border tax specialist firm such as ours for confirmation when dealing with cross border tax issues and their resolution.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  52. Hi Iyah,

    Any time you work and the person pays you without withholding income tax, CPP, EI, etc., you are considered as self-employed and must report all income as such.

    As self-employed, you do not need to register your business, unless you will be earning more than $30,000 in the year, and then you would be required to register with GST and collect and remit GST on your earnings.

    Reporting your self-employment earnings is done via your regular annual tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  53. Fran 12/09/2013 at 5:01 pm

    How much is the RRSP contribution limit for 2014?

  54. Hi Fran,

    The RSP Contribution Limit for 2014 is 18% of your Earned Income to a maximum of $24,270, plus any unused Contribution Limit amount of previous years available.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  55. Hi Ben,

    Taxation and Citizenship have no relation when it come to tax remittance and reporting.

    The calculator you used is very accurate and provides you with a very good estimate of the tax liability for the income estimated.

    Aside from income tax for both federal and provincial governments, CPP and medical may be required.

    As an Australian you should consult with your Australian Tax and Social Security Tax Office to determine if contributions made are reciprocally acknowledged... ie. if you would get credit for CPP contributions towards your Australian Social Security Pension.

    We are not aware of a treaty item indicating you are exempt from CPP Contributions.

    In addition to income tax, CPP Contributions would amount to about 10% of your gross income.

    As for an RSP (Registered Savings Plan), unless you look to being a long term resident of Canada with retirement goals, it would not be a suitable vehicle for you. Firstly, contributions to a RSP are limited to 18% of your annual earnings of the previous calendar year; since you'll be in Canada for possibly only two years, you would not be able to contribute until your second calendar year. Secondly, unless your gross and taxable earnings will be in excess of $150,000, any tax savings by credits would be lost when repayment is done through withholding tax upon withdrawal from the RSP account.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  56. Peter 12/12/2013 at 6:40 pm

    What is the suggested upper income limit to benefit efficiently using U-file software for tax returns ?

  57. Hi Peter,

    The level of income is not so much the issue, but the complexity of the tax situation.

    Personal tax software is suitable for those with simple tax reporting requirements or those individuals that understand their tax situation and feel confident about their understanding of the tax issues and laws.

    For example some low (and high) income individuals may use personal tax software because their situation is basic (one T4 slip, etc.) and this would satisfy their reporting needs; other may have rental income, retirement income, etc. and understand what they are able to have available to them for deductions, so using personal tax software can of of value to them; others may have middle to higher income which include some complex issues, such as investments, employment deductions, medical and disability issues, dependants other than children, etc., for these individuals personal tax software may not be the best option as a intricate knowledge of the income tax laws is beneficial to claim every possible deduction, which is not always the case with interview type personal tax software packages. In fact some individuals actual end up losing out by following the suggestion of the tax preparation software and end up misunderstanding the interview process and then answering the questions inaccurately.

    It all comes down to the confidence you have in the software and yourself with your particular tax situation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  58. Scott P. 12/12/2013 at 6:44 pm

    I have not filed returns from 2010, 2011, and 2012 due to being very disorganized. Should I file under the Voluntary Disclosure Program or get a lawyer?

  59. Hi Scott,

    The Voluntary Disclosure Program (VDP) is a program created and administered by the Canada Revenue Agency (CRA), which permits taxpayers to amend or correct their previous tax filing or reveal information to the Canada Revenue Agency not previously provided in their tax return. The purpose of the program is to allow taxpayers to come forward out of their own accord to amend their tax return without fear of criminal prosecution and reduce the likelihood of additional penalty charges being applied to the taxes owed to the government of Canada. (NOTE: it is a commonly held belief that additional penalty charges will not be applied upon being accepted into the Voluntary Disclosure Program. This is FALSE. In some cases, additional penalties are still charged even if the application into the program was deemed as valid by the Canada Revenue Agency).

    Since you have not yet filed your tax returns for 2010, 2011 and 2012, you would not qualify for the OVP programme. unless you have done some of an illegal nature.

    You don't need a lawyer, simply get your tax returns filed and up to date.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  60. Ram 12/13/2013 at 8:51 am

    Hi,
    I am planning to join my wife (who is going to work in Ontario from January for 2 years). I will be visiting as a temporary visitor from India. I am employed overseas and may travel back and forth and there is an option to work from home when in Canada. I might spend a major part of the year in Canada. If I continue to draw salary in India it will be taxed automatically. I am wondering if I need to file income tax returns in Canada also. Can I claim tax credit for the deducted overseas taxes?

  61. Matthew Varga 12/14/2013 at 1:39 pm

    Hello, I have recently been out of Canada for the whole year of 2013 and have earned zero income for this year. I have about 25,000$ in my RRSP and I wanted to take advantage of my low income and withdrawal from the RRSP so as to do a withdrawal and not pay tax on that.

    If I was to withdrawal up to the basic personal amount of 11,000 does that mean that I would effectively be withdrawing that RRSP money tax free because I would get all the tax back for the withdrawal??

    Also would it be advisable to withdraw the full amount from my RRSP since I have no income and pay the lower tax and then next year when I am working I can re contribute some of those funds back into my rrsp and use it to help get a refund for that year?

    Thank you for the insight

  62. Hi Ram,

    I you will be physically in Canada for more than 183 during the calendar year, you will be considered a taxable resident of Canada and would be required to report your world-wide income on a Canadian tax return.

    Since Canada would be your tax home, yes, you are able to claim a foreign tax credit for the tax paid in India on your employment income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  63. Hi Matthew,

    If you have zero income other than the RSP withdrawal, the RSP withdrawal would allow you to have exempt income up to the personal exemption amount (approx $11,000).

    If you withdrawal the entire amount, you would not be able to recontribute unless you have an available contribution limit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  64. Mike 12/17/2013 at 6:11 am

    Hi,
    I’d appreciate your kind clarifications about couple of questions:

    Q1: As an Ontario PR
    I own a small shop in my home country which has no Tax treaty with Canada.
    Shop was acquired prior to becoming Permanent Resident of Canada.
    This shop has been rented out which makes a yearly income of around 5,000 CAD

    -Is such foreign income should be reported in T1 form ?
    -If Yes, then why should I pay taxes since the shop has been acquired prior to becoming PR with Savings made outside Canada before becoming PR?

    Q2: Assuming I also had certain savings invested in Foreign Mutual Funds, say 80,000 USD.
    I requested redemption of ALL (100%) shares from these Funds prior to coming to Canada (because these funds started performing badly)
    Those funds cannot provide 100% redemption of ALL shares at once, so they are periodically sending lump redemption sums
    to my foreign Bank Acct equivalent to 2-3% every couple of months.
    I did not make any profit from these funds anyway.

    -Should this kind of foreign income be reported ?
    -If Yes, why since this money was earned and invested in foreign funds prior to coming to Canada
    The redemption sums received from time to time should not be considered as income, they are just redemptions of savings
    earned before coming to Canada (especially, that I did not make any profit)
    Assume ALL shares redemption (100 %) took place immediately after my request of redemption which is prior to Landing
    it would have been considered just as money earned before coming to Canada.

    Thank you

  65. Matthew Varga 12/17/2013 at 12:03 pm

    Hello, I have recently been out of Canada for the whole year of 2013 and have earned zero income for this year. I have about 25,000$ in my RRSP and I wanted to take advantage of my low income and withdrawal from the RRSP so as to do a withdrawal and not pay tax on that.

    If I was to withdrawal up to the basic personal amount of 11,000 does that mean that I would effectively be withdrawing that RRSP money tax free because I would get all the tax back for the withdrawal??

    Also would it be advisable to withdraw the full amount from my RRSP since I have no income and pay the lower tax and then next year when I am working I can re contribute some of those funds back into my rrsp and use it to help get a refund for that year?

    Thank you for the insight

  66. Matthew Varga 12/17/2013 at 6:47 pm

    I do have remaining rrsp limit. However I would do the re-contribution in 2014 because i will be working again. WOuld it make sense to do withdraw the majority of my funds this year while i have no income so i can take advantage of the low taxes i would pay on the rrsp withdraw?

  67. Hi Mike,

    Unless you are very certain, do not assume Canada does not have a tax treaty with your native country. If in fact there is no tax treaty, you are subject to double taxation in both Canada and your native country. This is very slim as Canada holds treaties with the majority of countries.

    Any world-wide income earned while a resident of Canada is taxable in Canada and MUST be reported on your Canadian tax return.

    Any foreign assets would/should have been reported while you applied for residency.

    Answer to your Q1, yes because you are earning current income from current activities.

    Answer to your Q2, yes foreign income is reported... in this case of mutual fund sales, the income is reported as capital gain and only half is taxable, the gain is the difference between what you invested originally and what you receive as proceeds. Regardless of when you requested the redemption, the income is determined at the time the mutual funds are converted to cash.

    If you did not make profit, you are eligible to claim a capital loss on the losses you incurred.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  68. Steve 12/18/2013 at 12:07 am

    Hello,

    I'm self employed in Quebec and work 8 months out of the year (April to November) while the other 4 months (December to March) I live in Ontario at my brother's house. When working in Quebec I live at my parents.

    Can I consider my provincial residency as Ontario for the lower tax rate. I can change my drivers / medicare to Ontario.

  69. Hi Matthew,

    This forum is mpt a place to obtain financial planning information. The purpose of an RSP is for retirement savings.

    We cannot provide you with an answer which would be a personal decision to withdraw your retirement savings. Yes, withdrawing them in a low tax liability year would allow you to save taxes, but withdrawing the funds would also reduce the amount you can contribute to a RSP as any withdrawals are not recontributable like a TFSA.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  70. Hi Steve,

    Your residency is based on your physical living address reported to your provincial government. Seems you have QC residency (drivers licence, etc.); if you are free to change this to become a resident.

    But consider if your self-employment is a regional issue, if REvenue Quebec believes you are operating a business in QC with the unsubstantiated claim you live out of province, you would still be responsible for filing Quebec provincial tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  71. Bryton 12/19/2013 at 7:26 pm

    Hey, so I make about 15k a year (I'm a university student), but I put much of it into my TFSA. also, I earn my income through independent contracting. do I owe the normal 15K amount as described in this calculator for Alberta? Also, I have never been contacted by revenue canada, do I need to initiate this tax-paying or should they contact me and tell me to pay? Thanks a lot,

    Bryton

  72. Ayesha 12/20/2013 at 2:07 am

    Hi,
    My question is My husband is earning $80,000 per year. If I start part time work and earn some money for example $10,000 per year. How much tax we have to pay? Can I file my tax separately? Will it affect the child benefits?
    Thanks

  73. Hi Bryton,

    The calculator above will provide you with an idea of the tax liability you will have at tax filing time. In addition to income tax, you are also required to contribute to CPP of which would be about 10% of your gross earnings.

    You determine when to pay based on filing your tax return, CRA will not request payment before you file.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  74. Hi Ayesha,

    In Canada all individuals file their own tax return. You may not have filed because you had no earnings, but child benefit payments are based on filing of both parents.

    If you earn less than $11,000, this income would be exempt from tax as it is below the personal exemption amount.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  75. Self Contractor 12/29/2013 at 1:05 pm

    Hi,

    I have recently been employed as a delivery driver for a courier company. I have used your calculator for future reference, but I was wondering if I would be able to include fuel expense when filling the forms out to lower the amount I owe. Thanks!

  76. Hi Self Contractor,

    As an employee, you can only be eligible to deduct car expenses if your employment contract allows you to do so and your employee consents and signs a T2200 form ( link to cra-arc.gc.ca ).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  77. Lucy 12/30/2013 at 12:36 am

    I'd like to understand the scenarios of filing TD1 in my situation. In 2014, I will be eligible to receive my pension from my past employer (for whom I last worked in 2008). I will also be working part-time with another employer (for whom I am currently working part-time and have been since 2008). I filled out a TD1 with my part-time employer in 2008 and haven't changed the deductions-just claimed basic personal amount. If I understand the TD1 form I need to fill out regarding my pension, I will, in 2014 be in a "multiple employer" situation, as it were, and must enter "0" on line 13. I don't understand what the implications of writing "0" on line 13 are... If I do that, then how much tax will be deducted from my pension?

  78. Hi Lucy,

    Completing the TD1 form for your part time employer will have no effect on the tax deducted from your pension.

    The TD1 form for your part time employer only affects the tax withheld from the part time wages you'll be paid.

    If your former employer's pension fund manager does not withhold tax from your pension payments, the TD1 completed for the part time employer would determine if you wanted the part time employer to withhold more income tax than regularly calculated. This is done to cover the potential tax liability you may have if the pension income is not subject to withholding tax.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  79. Ute 12/30/2013 at 12:48 am

    Hello,

    I have a general question.

    Are all working holiday visa holders who stay in Canada longer than 183 days automatically declared as "residents" for tax purposes? For example a German work & traveller earned income in Canada and he/she lived in Canada over 183 days throughout the year.

  80. Hello Ute,

    Yes, according to the tax treaty between Canada and Germany, you are deemed a tax resident if you are physically or deemed resident in that country for 183 days or more during a calendar year.

    This residency test is to ensure the taxpayer is not double taxed by Canada and the taxpayer's native country.

    Any tax paid in Canada is claimable as a foreign tax credit on your German income tax return, as applicable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  81. Damian 12/31/2013 at 12:09 pm

    Hi,

    Great income tax calculator page, but I think a bug was introduced when you added the dividend boxes and calculations... If I put in, say, $100k income, I get $73.5k in after tax income in Ontario. If I then ADD $20k in ineligible dividends, my after tax Ont income DROPS to below $70k :) I don't think that's correct.. :)

    Cheers!

  82. LSM Insurance 12/31/2013 at 3:15 pm

    Thanks Damian! We will look into this. Happy New Year!

  83. Damian 12/31/2013 at 3:36 pm

    :) It looks like the new (after tax) amount of the dividends is not being added to the after tax income (the sum of the tax paid and the after tax income after adding the $20K in dividends is still only the original $100k). So it looks like you calculate the extra taxes on the dividends, add those to the tax payable, and to get the after tax income you subtract that new tax total from the ORIGINAL $100K amount, not from the $100k + $20k... :) (can you tell I'm a programmer, haha - reverse engineering the bug!)

  84. LSM Insurance 12/31/2013 at 4:02 pm

    Thanks Damian - appreciate your note. We'll investigate

  85. Sheila 01/02/2014 at 2:23 pm

    Does this tax calculator include surtax and health tax (Ontario)?

  86. Hi Sheila,

    Yes, the calculator takes into account all provincial and federal surtaxes as well as the basic income taxes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  87. Canada #272 01/02/2014 at 5:19 pm

    Hello,

    Can you have minus net income after right offs. Self employed delivery service.

  88. Hi Canada #272,

    While it is possible to have a net business income loss, it is not possible to have a negative net income amount on your income tax return. The value cannot be less than zero.

    Eligible business deductions can produce a business loss which can then be used to reduce other income sources.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  89. Lisa 01/03/2014 at 4:36 pm

    Hello,

    On December 31st, 2011, I was a resident of Nunavut. I had H&R Block in Yellowknife complete and file my taxes for me - my first time not doing it myself -because of all the additional things that were claimable. I just recently noticed that the woman that did them had put Alberta as my place of residency as of December 31st. Completely wrong. I even had a notary write a letter-which I INCLUDED with all the paperwork I gave them to do my taxes -stating that my place of residency was Nunavut.

    How do I fix this mistake?

  90. Hi Lisa,

    Easy to fix... go back to H&R Block and get them to correct. If you are not conveniently located to go back to the original location, find a location close to you and go to them.

    They have a guarantee to correct their errors, if not contact a better tax service.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  91. Hanzhou 01/04/2014 at 1:01 pm

    Hi

    I spent the first half of 2011 working in Vancouver, BC and moved to Japan where I worked for 9 months under the Working Holiday visa, making about $20 000 during that time. I returned back to Vancouver to attend school for a month (tuition: $600) before leaving again. I have not filed taxes for the 2011/2012/2013 years. I am returning to work in Canada agin in the following weeks, how do I go about filing for the previous years? I am a Canadian citizen.

    Thank you

  92. Save Tax 01/04/2014 at 1:06 pm

    Tim Cestnick shared 10 tax saving strategies. We wanted to pass it on to your readers link to theglobeandmail.com

    Happy 2014!

  93. Hi Hanzhou,

    Easy... get together all your tax receipts and related documents for travel and overseas employment and tax and bring to an experienced tax preparer to review and prepare the necessary tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  94. Andrew 01/04/2014 at 5:27 pm

    Hi there, I have the opportunity to put payments of about $50,000 to Google through my company (and thus earn the Aeroplan miles on the credit card.) It would be a straight in and out expense. But I realize it would still be considered income? When I use the tax calculator, the implications look like it wouldn't be worth the rewards. Is that correct?

  95. Chandra 01/05/2014 at 3:10 pm

    I came to Canada and start working in October 2013. My total income for 2013 in Canada is $9498. How much I have to pay as income tax
    for 2013 ? I have a non-working wife and we are not PR of Canada.

    Thanks

  96. Hi Andrew,

    Your question doesn't contain much information, but I'll make assumptions to answer it.

    When you say you have the opportunity to make payments to Google for your company, I will assume these payments are expenses/bills to your company for services purchased from Google.

    If you are simply paying the bills of your company to Google, there is no income/expense taxable matter to you in this case. You are simply loaning money to your company to pay the bills, it would be expected that your company will repay you. It merely means the company is transferring the liability from Google to you for repayment.

    The tax issue comes when the miles are earned... the miles are a taxable benefit to you. So the value of miles is your income to be reported on your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  97. Hi Chandra,

    The amount of tax would depend on your home country as you must report this Canadian income on your home income tax return.

    You will be subject to a 30% non-resident tax which would be claimable for refund on your home country tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  98. Frank C 01/06/2014 at 12:41 am

    Hello,

    My son Joseph is taking a B.Sc. at the LSE in the UK. Do you know if I can claim the tuition fees on my income tax return?

    Thank for any help you can provide.

    Frank

  99. Hi Frank,

    You/your son would be able to claim the tuition credit if the foreign university qualifies/certifies your son's attendance and tuition using this form: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  100. Frank C 01/06/2014 at 5:02 pm

    Hello,

    First off I would like to thank you for the help you gave me when I asked if I could claim my son's tuition costs against my income tax. Your answer was very helpful.

    I would like to ask your advice on one more question: As my son's tuition and living costs while he attends university at the LSE in the UK are covered by me, can I claim him as a dependent when I file my 2013 income tax form? My son is twenty two and in his first year of a three year course at the LSE.

    Thanks for your help.

  101. Hi Frank,

    While you are able to claim a portion of your son's tuition, if he qualifies and transfers the credit to you, you cannot claim him as a dependant as he is not infirm.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  102. Shadab 01/07/2014 at 8:51 am

    I'm a new PR holder, but I don't live in Canada. i got the PR card in September-2012, now I'm planing to move and settle permanently in Aug-2014. I got my credit card and have bank account in Canada but don't have any Canadian income so far neither I claimed for my kids tax benefit.I have out side of Canada income, do I have any tax liability?

  103. Hi Shadab,

    You would have a tax liability if you have tax residency ties to Canada... examples of ties include bank accounts and credit cards.

    Your best determination of your tax status is to obtain an official opinion from CRA.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  104. Pierre 01/07/2014 at 4:01 pm

    Hello,

    Is there a tax credit for working out west(northern Alberta), my home is New Brunswick?

  105. Paul H 01/07/2014 at 4:02 pm

    Hi,

    I just had child on Dec 15th and was wondering if there were any tax credits and deductibles I could apply for?

  106. Hi Pierre,

    If the area is within a territory qualified for the northern resident deduction, you would be eligible for this but you would need to qualify and prove your residency.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  107. Hi Paul,

    Congratulations!

    You qualify for the dependant deduction. You may also qualify for day care and other deductions.

    You can also check with Service Canada to determine other benefits you may qualify to obtain:
    link to servicecanada.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  108. Deb 01/09/2014 at 5:33 pm

    Hi,

    I have 2013 self-employment income of $43,273 reduced to a net taxable income of $30,800.19. I am trying to calculate how much to invest in my RRSP but now matter how much I increase the amount I can't reduce my taxes payable to under $900. With an RRSP contribution of $14,400 my federal tax payable is $905.72 - how can I reduce this to $100 or lower?

    Help!
    Deb

  109. Hi Deb,

    The RSP Contribution Limit is not unlimited... what is your limit for 2013?

    Based on the information you provided of net income of $30,800, a RSP contribution of $19,762 would reduce your taxable income to zero resulting in no tax payable, BUT as a self-employed individual you still would be responsible for CPP Contributions of roughly 10% of your income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  110. Joe 01/13/2014 at 3:44 pm

    I do not think I am getting enough taxes taken off my pay...

    I am concerned about the taxes that are deducted from my pay. I live in Hamilton Ontario Canada.

    I am on salary and I make $1153.85 before taxes per week.
    My pay stubs show that I pay $53.78 CPP, $21.69 EI and $235.76 in taxes. However when I used an online Canada tax calculator the CPP and EI contributions were the exact same but my taxes were $265.26 which is a difference of $29.50/week $1534/year.

    Obviously that is a lot to be out.

    What tax bracket am I in, what percentage am I paying?

  111. Hi Joe,

    The amount of tax withheld from your pay mostly depends on the information you filed with your employer on the TD1 form.

    I'm not certain about the online calculator you used, but using the calculator above indicates the tax withheld is in line with the standard deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  112. Ted 01/13/2014 at 9:57 pm

    Hi,

    I'm self employed. What suggestions do you have for me to get ready for preparing my tax return?

    Thanks.

  113. Hi Ted,

    Here is a check list for Self Employed Owners working on getting their tax papers in order.

    The end of the year is here for self-employed small business owners (Sole Proprietors). A sole proprietor is a type of business entity that is owned by one individual and where there is no legal distinction between the owner and the business. The owner receives all profits and is responsible for all debts. The year end profits of the business are combined with all other income that an individual might have and taxes are paid at the current personal tax rate.

    Sole proprietors often feel overwhelmed, confused and nervous about preparing for their yearly tax filing; especially those new entrepreneurs that do not have a business or accounting background.

    As a Sole Proprietor, your business year ends on December 31st each year and steps need to be taken to ensure you are not overpaying or underpaying CRA. It starts with making sure your bookkeeping is done and up to date. Here is a checklist of task that should be completed every year.

    End of Year Bookkeeping Checklist:

    - Reconcile Your Bank Account. This will make sure that an expense or deposit (sale) is not missing. Don’t forget about those monthly bank fees (deductible!).
    - Catch Up On Invoices. Do you have work or product that you have completed but not invoiced for yet?
    - Record Transactions. – Have you imported or posted into your accounting system all transaction from your bank accounts, PayPal accounts, and credit card accounts. Search your pockets for receipts missed.
    - Personal Expenses. – are you missing any income or expense transaction related to the business that were deposited or paid from your personal bank account.
    - Categorise Expenses. – Make sure all of your income and expenses have been properly categorized to the correct business expense account.
    - Don’t Forget Mileage. – Have you recorded all the time spent in the car? Your daily commute doesn’t count.
    - Don’t Forget Home Office Expense Allowances. If you are operating your business from your home you may be entitled to expense a portion of your mortgage interest and utilities. Check with your accounting professional for your percentage.
    - Pay Your Estimated Taxes. Your tax return must be filed by June 15th of the following year. If you owe taxes and to avoid penalties be sure you’ve paid enough in estimated taxes for the year. If you need to make an additional instalment do it before April 30.

    Armed with this checklist and the help of your accounting professional your year end will go much smoother. Your business books will be error-free and your tax return will be accurate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  114. Soumya Banerjee 01/15/2014 at 3:37 pm

    Hi, I am working in toronto from Jan 2014. My wife and my kid is going to be here from May 2014. My wife will work in the home country till May 2014.
    After she comes here she wont be working and will be as my dependant. Can I claim income tax amount for my spouse and my child as dependants?

  115. Hi Soumya,

    Yes, you can once they are resident in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  116. LSM Insurance 01/16/2014 at 11:32 am

    Interesting post from Ami Maishlish - President of Life Guide on Linked In

    Just as in the world of physics, where neither matter nor energy nor time can be created from nothing, one cannot create a charitable donation tax credit that is greater than the value of the donation itself - simple common sense.

    Therefore:
    *Remind your clients that if they receive a charitable donation receipt for an amount higher than the value of property donated, the receipt is not valid and can’t be used to claim a tax credit.* (bolding is mine) The CRA is auditing all such gifting tax shelter schemes, and to date, none has been found to comply with Canadian tax law.

    For the 2013 tax year, CRA will not assess taxes owed or provide a refund to taxpayers who claim a tax credit under a gifting tax shelter scheme until it has been audited.

  117. Christina 01/17/2014 at 4:15 pm

    Hi,

    I’m a home care PSW, I rarely have to go to the office unless I need to pick up gloves, drop off client charts or talk to management or have an in-service. I have multiple clients a day but they are often spaced so far apart that I have to go home in between (clients at 8-9am, 12-2, 3-4, 7-8).

    My work pays the occasional travel allowance but it’s extremely insignificant ($2.50 for sometimes a 45 km round trip and only if two clients are booked within 3 hours of each other). How do I claim my travel expenses and track mileage?

  118. Hi Christina,

    As an employee, you are limited in the deductions you can take, but for employment related deductions you can request your employer to sign and approve a Declaration of Conditions of Employment form available here: link to cra-arc.gc.ca

    Once approved, you would be able to deduct all employment related expenses.

    In your case, not all the kms driven would be deductible because of the working conditions you have, but here are the rules:
    Any travel to and from your place of work and home is not deductible, but travel during work is deductible.

    In your case you would be able to get deductions for the kms driven during the day (you must track and record all travel for work purposes in a travel log) less the number of kms to your employer's office. This could result in a substantial deduction for you as it would include a portion of the gas, insurance, vehicle depreciation, repairs, licence, etc.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  119. Greg 01/18/2014 at 3:01 pm

    Hi,

    I own my home in Alberta and will be in BC for about 6 months to see if I can get work or not and have been getting EI while in BC, plan on returning to Alberta soon, which province do I use for filing tax return?

    Thanks

  120. Hi Greg,

    If you are temporarily looking for work in BC, but have a house in AB, it would depend on the time you have been in BC during the calendar year.

    If you have been in BC for more than 183 days during 2013, you report BC as your home for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  121. Dougald 01/18/2014 at 4:41 pm

    Hi,

    Non registered mutual fund expenses:

    My tax reporting package shows four items: investment dispositions, investment income, summary of fees, and the tax slips. The sum of the income on the slips closely matches the sum of investment income. The investment dispositions would unbalance these sums. The summary of fees has a big disclaimer that worries me. Do you think that these fees can be claimed as a carrying charge?

  122. Hi Dougald,

    Without seeing what you are seeing, it's pretty much up to me to guess...

    Investment income may not match your summary versus your tax slips as actual income from dividends is grossed up for tax purposes, this may produce a variance.

    As for the the fees disclaimer, unless it says they are not deductible, deduct them.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  123. Keith 01/19/2014 at 2:24 pm

    Hi,

    My question is how to receive a lump sum of money from a sick time benefit to avoid paying the income tax of taking it in a lump sum. I would like to use some of the money this year...Thanks...

  124. Bruno Z 01/19/2014 at 2:26 pm

    My mother in law died on December 31 2013. The $2500 from RRQ will be payable to the estate. Should I include it in the estate’s 2013 tax return or, since it will be received in 2014, on a 2014 return in which it will be the only income?

  125. Hi Keith,

    You cannot avoid tax when taking any form of benefit payment.

    To have the least amount withheld, take out the lump sums in smaller amounts spread over months.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  126. Hi Bruno,

    Firstly, our condolences to you and your family on your loss.

    The death benefit from CPP/RRQ is taxable in the year it is received. It is not reported on her final tax return which you will need to prepare for Dec 31, 2013.

    The death benefit will need to be reported on a T3 Tax Return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  127. Aerique 01/21/2014 at 9:10 pm

    Hi,

    I'm a Dutch guy about to move to Vancouver. Moving to move in with my Canadian girlfriend. (At the moment we are not married or have common-law status)

    I'm about to get a job offer from a company based in Toronto for which I'll be doing IT work from remote from Vancouver. (I'll likely go to the head office in ON every other month or so)

    How does this work tax wise? My questions:

    1) Is it correct to assume my ON-based employer will deduct tax from my salary according to ON taxation rules ?

    2) Is that because my employer's office is based in ON ?

    3) What happens to the difference in ON vs BC income tax? (BC appears to have a slightly lower income taxes) ? Can/Should I file for a refund for the difference?

    4) Anything else I should be aware of?

    Thanks,

  128. Hi Aerique,

    These are questions you should be asking your potential employer as the answers would depend on your Employment Contract and whether you are an employee or contractor.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  129. Aerique 01/22/2014 at 9:44 am

    Thanks for your reply. To follow up on my question and your answer. I would be working as a permanent full time employee based in Vancouver for a company based in Ontario company. They will do ON-based income tax deduction.

    Does this information help for question 3 and 4?

    Thanks!

  130. Hi Aerique,

    If you will be a payroll employee and the employer will deduct at the Ontario schedule, you wil file your tax return as a BC resident an be refunded any excess tax withheld by the Ontario employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  131. Hi Aerique,

    If you will be a payroll employee and the employer will deduct at the Ontario schedule, you wil file your tax return as a BC resident an be refunded any excess tax withheld by the Ontario employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  132. Dal 01/22/2014 at 9:38 pm

    For GST host rebate for owner built homes. Do you know the maximum value the property has to be to claim? I hear it's 550 000. Thanks

  133. Hi Dal,

    There is not a clear-cut total that can be applied... it depends on the qualification, if the house was purchased with or without land and the date of start and completion of construction.

    For more details: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  134. Christina 01/23/2014 at 3:30 pm

    Hi,

    Thanks for the reply to my question Jan 17 2014, I am just wondering if I could get some clarification, I have an example of a day from the log book I've kept.

    One day, first client from 745-845 am drove 6 km,
    second client from 9-10am drove 12 km next client not until 230pm therefore drove 7 home
    third client from 230-430pm drove 33 km, then 33 km home.

    I did not go to the office at all this day. Do I count all travel to and from clients as work related and therefore count my mileage for that day as 58km?

    Thanks again in advance.

  135. Hi Christina,

    Until you obtain a signed Declaration of Conditions of Employment from your employer, it is unknown... depending on how your employer completed the form, you may be eligible for the 58km or 58km less the distance to and from your employer's office.

    If it is a requirement that you use your vehicle for work purposes, you must have an Employment Agreement which states this and the Declaration of Conditions of Employment must be completed accordingly.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  136. Hi Thomas,

    Yes, you must know and report your child's income on Schedule 5 of your tax tax return, transferred from their tax return, for you to determine your eligibility for the deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  137. Dee 01/28/2014 at 8:57 pm

    Hi,
    I am trying to figure out how much income tax, if any, I would owe on $25,000 supplemental death benefit from the Canadian government. It was left to my father's estate and I am the executrix. I've read a lot of conflicting information and the CRA site doesn't really help!

  138. Hi Joe,

    The personal exemption amount is $11,038.

    Even though earnings under this amount are not subject to income tax, all earnings are to reported as they are subject to CPP Contributions, of roughly 10%.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  139. Sharleen 01/29/2014 at 12:35 pm

    I am a Canadian citizen with two children who was living abroad in France for several years. I returned to Canada Jan1, 2013 and also separated with my husband (also a Canadian citizen) at that time. He continued to live in France but in Aug 2013, moved to the U.S. I contacted CRA and had my marital status. During 2013 I was unemployed so he gave me money for housing/utilities, car, food to take care of the children. Do I need to report that money as income and will I be taxed on that?

  140. Hi Dee,

    Best contact the office/agency that issued the payment. They can advise if the payment amount is taxable or not and if a T-Slip will be issued for tax reporting.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  141. Hi Sharleen,

    Child support received is not taxable or reportable on your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  142. LSM Insurance 01/29/2014 at 2:14 pm

    This is an interesting article by Jamie Golombek which discusses some of the tax advantages of moving link to jamiegolombek.com

  143. Do your homework before paying to get your taxes done!

    link to cbc.ca

  144. Sam 01/29/2014 at 7:29 pm

    I am a Canadian resident with a full time job in Canada. I have also been asked to consult for a U.S. company over the phone and will be paid for my services. I may end up going to see this company a few times a year to follow up. Do I file income tax in the U.S. or in Canada. They are asking me to complete a W9 but that says I am a U.S. resident. Can you help?

  145. Hi Sam,

    Completing a W9 does not make you an US resident. A W9 is an application to obtain an Individual Tax Identification Number (similar to SIN in Canada).

    They require the W9 to issue you a 1099-MISC form (similar to a T4A in Canada) as you are an independent contractor or self-employed.

    If the company withholds tax from you, you would be able to obtain a tax refund of any US tax paid via an US tax return.

    The 1099-MISC form issued is also to be reported on your Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  146. Eddie 01/30/2014 at 5:39 am

    Hi, I have a job offer in Vancouver and need to figure out the net payout. I will earn 150,000 p.a., and I have two toddlers.
    Thanks

  147. Hi Eddie,

    To determine your net pay, use the calculator above entering your gross income then subtract another 7% for statutory deductions.

    There may be other deductions applicable, but these are the only tax related ones.

    Having children does not affect the after tax and statutory deductions calculated. Dependant deductions are claimed at tax return filing.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  148. Sara 01/30/2014 at 10:43 pm

    Hi,

    My permanent residence is in Ontario. I spent the summer of 2013 (end of April until end of August) living and working in Yellowknife, NWT. I have since returned to Ontario and received my T4 from my job there, but it does not include the amount which was deducted for "NWT Tax" (separate from federal tax) on each of my pay stubs. Where and how, if possible, do I claim this amount? Can it be done electronically? (I use NetFile).

  149. Hi Sara,

    If this tax is refundable to you, you claim it on your Federal/Ontario tax return.

    Be sure your tax software can claim the tax deducted.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  150. Patricia M 01/31/2014 at 12:06 pm

    Hello,

    I have been married for many years now but my husband and I keep our finances separately. We share rent but I am responsible for my bills and he the same. We have been filing income tax as single. Could there be a problem with that? Such as pension survivor benefits.

    Thank you,

    Patricia

  151. Hi Patricia,

    Just because a married couple keeps their finances separate does not mean filing as Single is correct.

    Yes, filing with an inaccurate marital status can not only affect pension survivor benefits and the ability to pension-split, but also would have meant you and your husband OVERPAID on income tax.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  152. RIYADH 02/01/2014 at 3:22 pm

    Dear Sir;

    I immigrated to Canada on 2004.
    Since I lived in Canada, I never filed any tax because I didn’t get a job & I was unemployed for five years till 2009.

    On 2009 I got a job abroad. I left Canada & worked in overseas employment as Canadian living exclusively outside Canada.

    Now [on 2014], I decided to go back to live in Canada.
    Will be there any legal obligation for me towards CRA for the period between 2004 & 2009 as I didn’t file any tax?
    & will my assets (of overseas savings) be subjected to tax pay when I transfer it to Canada?

  153. Hi Riyadh,

    During the years 2004 through 2009, it would have been to your benefit to file a tax return each year to claim the benefits you are due, even if you have no income.

    If you left Canada before July 1, 2009, any income you earned abroad is taxable in Canada and a tax return should have been filed. If you left Canada after June 30, 2009, you would not be required to report your foreign income.

    Your assets will not be taxed when/if they are transferred to Canada, but any income on those assets for the years 2004 to current should have been reported to Canada on your Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  154. Pete 02/02/2014 at 1:29 pm

    Love your tax calculators. Using it for retirement planning. Wondering if you could add a couple of check boxes for Age Amount (65 yrs old) and Pension Tax Credit?

  155. LSM Insurance 02/02/2014 at 1:43 pm

    Thanks Pete - we will consider that in our next revisions

  156. LSM Insurance 02/02/2014 at 1:43 pm

    Thanks Pete - we will consider that in our next revisions.

  157. Talel 02/03/2014 at 11:54 am

    I'm working in canada with a work permit. my wife, still outside of canada ( no SIN ) , when i fill my tax papers , should i say i'm married or not ?
    and do i get some refund for that because she doesn't work?
    Thank you

  158. Hi Talel,

    If you are married, you must state this on your tax return. Filing false information (stating you are single when you are married) can void your work permit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  159. Deanna 02/04/2014 at 4:58 pm

    I got married in 2013 to my husband, who is Cuban. Can I claim him as a dependent if I am supporting him?

  160. Hi Deanna,

    Yes, you may claim your legal husband as a dependant on Schedule 5 if you supported him. You must declare his income either on his Canadian tax return or on your tax return even though he received support.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  161. Maria-Teresa 02/04/2014 at 8:51 pm

    Hi,

    I’ve worked under a payroll in Montreal, QC for the 3 first months this year.

    After that, I move to Calgary, Alberta, since 1st April 2014, and have become as an independent contractor working for the same company until 16 December 2014. Until now I have only $ 750 in a CPP for this year. For December 31 my province of residence was Alberta.

    The questions are:
    A. - How much should I hold back for taxes if I make $29,000 during my self-employed period.
    B. – How much I can put in my CPP to reduce my tax payment
    Thanks in advance for your help

    MT

  162. Hello MT,

    Enter your gross earnings into the calculator above to determine your tax liability for 2013 (Alberta).

    In additional to the tax calculated, you should set aside 10% of your gross for CPP contributions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  163. Saym 02/06/2014 at 2:10 am

    Hi,
    My yearly income is 83k ,but after all deductions on my bi weekly pay cheque ,i am earning take home 4060$ per month ,so can u explain why my earning too low after pay taxes ...i m toronto resident

  164. Hi Saym,

    That is a question you should pose to your employer as you may be subject to additional deductions over and above the statutory ones (tax, CPP, EI).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  165. Leo 02/07/2014 at 12:22 am

    Hi,

    I'm moving to Ontario, but I will still own property in Quebec (commercial as well as multi-residential property).

    My first question is, where do I pay personal income tax.. I'm guessing it will be in Ontario?

    My second question is do I pay corporate income tax in Quebec and Ontario, or just Quebec? How does it work out if you own property and 100% of your income is from Quebec, but you live in Ontario?

    Thank you in advance,
    -Leo

  166. Hi Leo,

    Without explicit details and specific answer is not available.

    Basically, if you live in Ontario, you pay Ontario taxes. If you work in Quebec and live in Ontario, you pay Ontario taxes as an Ontario resident.

    If the corporation is based in Quebec, the corporation pays Quebec tax. If the corporation has income in more than Quebec (Ontario too), then it pays taxes to all appropriate provinces for the income ratio earned from that province.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  167. jifi 02/07/2014 at 2:57 pm

    hii..my question is how i get the tax benefit in this year,if i had a gross income of 47000,paid almost 9000 yearly tax,dnt hav any rrsp plan,and six months back i got married,and she is unemployed for the last six months..so suggest me how to make a good return..thanks..

  168. Hi Jifi,

    At this time of year, there is not much you can do in terms of tax planning to improve your tax refund other than to contribute to a RSP.

    Complete and file your tax return and start thinking of deductions for 2014 based on your 2013 tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  169. Karan 02/08/2014 at 3:47 pm

    Usage of non refundable tax credits:

    I have spent 5 years in Canada. The first four were as an international student whereby even though I did not have any significant or no income, I filed my taxes so that I could accumulate non-refundable tax credits (NRTCs) for all the tuition fees I was paying. At the end of the four years, this was a substantial amount (let's say $4x).

    The past year, I worked full time and had federal and provincial tax deducted at source (this amount is $x).

    Based on the information answer provided here, it seems clear to me that since my NRTCs are 4 times the tax deducted at source, the following should occur when I file my next tax return:

    I should receive $x as part of a tax refund. My NRTCs should become $3x. Have I understood the system correctly? Since $x is a substantial amount, I want to know if I can factor this in as money that will be coming in.

  170. Joe 02/08/2014 at 3:48 pm

    Hi,

    I have about $30,000 to declare between pension and part-time earnings I don’t have anything to claim on and ended up paying over 3,000 last year. Is there anything I can do to cut this down.

  171. Robert L 02/08/2014 at 3:50 pm

    I became a resident in Canada in December 2012 and had no income that year.

    I started working last year in Toronto and worked with a company for 7 months before being let go. At which point I'd earned $93,000. My employer also contributed $4900 to my RRSP. When I was let go my employer gave me a severance package of $75,000 on which I paid taxes, although I don't think they deducted enough.

    I would like to know how I can shelter myself from having to pay more income taxes in 2013 using my RRSP and how much I can contribute in 2013.

    Also, can I contribute anything in from the 2012 and 2014 years to compensate for the money I made in 2013.

    Thanks.

  172. Karen 02/08/2014 at 3:51 pm

    Hi,

    I live Fort Saskatchewan, Alberta. I am employed as a live-out nanny. If my income is over 30,000 gross am I required to have a GST number and pay GST?

    Thank you!

  173. Hi Karan,

    Non-refundable tax credits are not utilised at the rate 1:1 when applying credit to income.

    Non-refundable tax credits are utilised at the rate of 1:1 when applying credit to federal tax payable. Basically, reducing tax payable directly.

    Any unused education/tuition tax credits not used in the current year are allowed to be carried forward and utilised in future tax years.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  174. Hi Joe,

    Depending on the source of your part time income, you may be eligible for some related deductions... check with an experienced tax preparer.

    If you are married or in a common law partnership, you would be eligible to share/split your pension and related credit to potentially increase your tax refund or reduce your tax payable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  175. Hi Robert,

    With no earned income in 2012, you would not have accumulated any RSP Contribution Limit for 2013 and therefore would not be able to claim a deduction/credit.

    Depending upon how your employer reports the RSP contribution, you may be able to claim it in 2014 or the amount in excess of $2000 may be considered an over-contribution and you would incur and fine for this.

    If the severance package amount was to be transferred into an RSP upon receipt, this may have be an option for you to reduce your tax liability... check with a Certified Financial Planner for options.

    At this time of year, there is very little one can do to reduce their tax obligation for 2013. File your 2013 tax return and start planning for 2014.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  176. Hi Karen,

    As a live-out nanny, you are not a contractor. Your employer is required to withhold and pay EI, CPP and tax on your behalf and provide you with a T4 slip at the end of the year for your services.

    Nannies do not qualify for GST registration as they services are provided via employment as an employee.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  177. Clinton 02/08/2014 at 5:11 pm

    Hi,

    I moved to Toronto from Montreal in the summer of 2013 for work. I have been residing in Ontario for the last 10 months and wonder how to file my taxes as I worked in Quebec for a small period of time in early 2013 before moving to Toronto.

    I have only applied for an Ontario Health card since living in Ontario, but the rest of my information still matches my Quebec information.

    Thanks for your help.

  178. Hi Clinton,

    As a result of moving to Ontario, you would be required to file an Ontario tax return.

    If you incurred moving expenses for your move, be sure to collect all receipts and have them itemised if you moved 40kms or more closer to your new place of employment in Ontario vs your old address in Quebec.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  179. sofia 02/10/2014 at 2:07 pm

    Hi,

    I am running my own business. Based on the program/software I made, I earned $55,000 and the total expenses is $60,000 (this include the money being spent by my husband like mortgage, house utilities).. I am wondering if I still have to pay tax and how much or I will be getting a refund. Thanks!

  180. Hi Sofia,

    Without knowing what you have entered into the accounting software, and exact answer cannot be provided. But based on your details, it sounds like you have very likely included expenses which are not eligible for deduction in your calculations.

    I recommend you get in contact with an accountant to review your transactions and prepare a valid profit and loss statement for your tax reporting.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  181. Jitendra 02/10/2014 at 3:11 pm

    Hi,

    Being working as a contractor in Alberta, I will be making just shy of $200,000 per year and my agency ask me to Incorporate my business. How much tax saving I can receive by incorporating my business?

  182. Hi Jitendra,

    You will not realise any tax savings... in fact you will incur a higher tax rate as a result of being an incorporated Personal Service Business and not be eligible to deduct business related expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  183. Andrew 02/11/2014 at 2:57 pm

    I'm a dentist. One of my staff lives in Ontario. Do I still have to pay her source deductions at the Quebec level every month?

  184. Hi Andrew,

    Employer source deductions are based upon employment location, not residence... so you would withhold based on Quebec requirements.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  185. David 02/11/2014 at 6:37 pm

    Hi,

    Im a foreigner with a temporary work visa that will be moving to Vancouver in September 2014.
    If my salary is 120kCan/year, how much taxes will I pay? What can I deduct from fixed living costs?
    Thanks,
    David

  186. Hi David,

    Living costs are not deductible for income tax purposes.

    Using the calculator above will provide you with an estimate of your after tax income.

    Since you will be relocating to Canada in September, you will be a non-resident for tax purposes (still required to pay tax), but you will also be tax resident in your home country and will be required to report your Canadian income to your home country's revenue agency.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  187. Candace 02/11/2014 at 9:35 pm

    Hi,

    I haven’t filed my taxes in seven years. I don’t have any of my old T4′s. How do I go about filing for all the missed years?

  188. Hi Candace,

    If you haven't filed in seven years and CRA hasn't gone after you for filing, you likely are due a VERY LARGE refund.

    You can contact CRA for copies of your past T4 slips here: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  189. Anne 02/11/2014 at 9:39 pm

    Hi,

    I was self-employed in Quebec until November 30th 2010. I was a resident of Newfoundland on December 31st of the same year.

    Where do I file my taxes?

    Thank you

  190. Hi Anne,

    Since you moved to Newfoundland from Quebec November, 2013, you are considered a resident of Quebec; state Quebec as your province of residency on your tax return for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  191. Saym 02/12/2014 at 2:16 am

    Hi,
    Actually my employer is taking too much deductions from salary other than tax ei and cpp ,is it my right can i stop other deduction from my pay salary ,b.c i don't want to other facility againts to my deduction
    Thanks

  192. Steve 02/12/2014 at 7:16 pm

    Hi I was wondering roughly what id be looking at as a return

    I made 89,500 paid 25, both ei and cpp maxed out , I do believe I owe 600 to them tho

    Thanks

  193. Hi Saym,

    The only Federal statutory deductions on your pay are tax, CPP and EI.

    The only statutory deduction you can adjust is the tax withheld... you only have the ability to increase this amount.

    If your employer is deducting other items fro your pay, you should speak with your employer about them.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  194. Hi Steve,

    It varies by province... enter your gross pay from your last 2013 paystub into the calculator above and compare the results to the paystub... this will give you and idea of your payable or refundable position.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  195. Hi Suzi,

    You can only claim such educational expenses if your child has a learning disability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  196. Donna 02/14/2014 at 12:17 am

    Hello.
    I was staying in the US as a student visa for 5 years where I worked as part of the co-op for 2 years and I filed for tax return and paid income tax from 2011-2013.
    I recently came to Canada on November 2013 on an Open work permit(temporary working permit) and I have around 4000$ income in Canada. (600 income tax deducted)
    I already filed tax return for US for 2013 and got tax returns (approx 1900$). In 2013 I earned approximately 17000$ in the US.
    Do I have to file tax for Canada and if so do I also have to include my wordly income? Thank you so much for your help.

  197. Maria 02/14/2014 at 1:03 pm

    hi
    I am a stay at home mum with one daughter , my husband works full time & we are his dependants.
    I have been offered work as a child care provider , I will be working from home & taking care of one child. I have asked for $15.00 an hr , or $2,322.00 a month. I would have to pay my own taxes , Canadian pension or or RRSP. How do I calculate a fair income to myself & employer .. Also my personal allowance is $11,000 a year in Calgary. So any thing above that , would my husband get less as im no longer a dependant ? my daughter is 7 , would she still be a dependant ? Thanks , my job starts soon & would like to know so I can tell my employer.

  198. Hi Donna,

    Even though you are resident in the US on a student visa, you are legally a Canadian tax resident and, yes, must file a Canadian tax return reportly your world-wide income.

    You are also eligible for the tuition tax credit on your Canadian tax return if you obtain the necessary confirmation from your US educational institution.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  199. Hi Maria,

    Firstly, you are not a dependant of your husband unless you have a physical disability. The exemption amount you speak of is the spousal deduction amount, not dependant deduction amount.

    Yes, any income you earn reduces the spousal amount that your husband can claim, but it also allows you to earn income and not be taxed based on your personal exemption.

    As far as calculating fair income, that's beyond the scope of this forum.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  200. Perry 02/15/2014 at 4:56 pm

    Good day,

    I am originally from Nova Scotia but work in Alberta where I rent an apartment. I have an Alberta drivers licence, Alberta health card, and vote here in Alberta. I have bank accounts in both provinces and half of my mail comes here and half in N.S. I live here in Alberta about 300 days of the year. My wife lives and works in N.S. I have been paying N.S. taxes but I feel I should be paying A.B. taxes due to residency.

    What is your advise?

  201. Hi Perry,

    If you have an Alberta Drivers Licence, Health Card and are eligible to vote in Alberta, you are a resident of Alberta.

    As your wife lives in Nova Scotia, she is a tax resident of Nova Scotia.

    You both should be filing your tax returns as appropriate tax residents.

    If you have filed as a resident of Nova Scotia, you can amend your tax returns to report your correct residency (and tax savings).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  202. Ken 02/15/2014 at 5:01 pm

    Can I claim monies paid to a trade school on my behalf?

  203. Hi Ken,

    Good question!

    Yes, you can IF the monies are reported on your T4 slip in Box 40; otherwise, no.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  204. CHRIS 02/17/2014 at 7:22 pm

    My income is $20,000 last year can I not use tuition fees deduction for last year's income tax return and save it for future years?

  205. Hi Chris,

    You can do anything you wish, it's your tax return!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  206. Michael 02/17/2014 at 7:24 pm

    Hi,

    I worked from January to mid-September if 2013 in BC, then moved to Ontario where I had been offered work. That work did not result in full time permanent position, but did work on temp basis from September to January 2014. Then I filed my two T4s with HR Block and they filed it as if I was resident of BC in December 2013. I don't think this is right, and even if it is, the tax software my sister has used successfully for many years shows considerably more refund than I got. Could you please advise what I should do?

    Thank you.

  207. Hi Michael,

    For the year 2013, you were in fact a resident of BC... did you hold a BC Drivers Licence and Health Card at Dec 31, 2013?

    If you believe your sister is using the tax software accurately and correctly, let her do you your taxes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  208. Chris 02/17/2014 at 7:30 pm

    Due to my disability, my employer gives me a parking spot but has been reporting this as taxable income. I just discovered (4 years in) that I should not have this counted as taxable income since I get the Disability Credit. Is there a way to fix this on our returns or can it only be done on the employer side? It is a sizeable amount of tax I pay per year and would like to correct the error.

  209. Hi Chris,

    Employers are required to provide assistance to their disabled employers as generally a non-taxable benefit.

    The interpretation of the benefit is that it is provided only to disabled employees. If the parking is a taxable benefit to non-management employees, it is not non-taxable to a disabled non-management employee, unless you are restricted by mobility limitation disability.

    This would be an issue you would need to discuss with your employer as you cannot amend and deduct disability related benefit expenses that were reported on a T4 slip... If you employer agrees to provide you the benefit because of your disability, then the employer must amend the past T4 slips so you can amend your tax returns.

    I hope this answers your question.

    Regards,
    Storoszko & Associates
    http://www.storoszko.net
    Tel/Fax: 647 367-3477
    Twitter: @Storoszko_Assoc

  210. Bev 02/18/2014 at 3:03 pm

    After filing a deceased taxes, what happens to their refund. How does the spouse get the refund.

  211. Hi Bev,

    When there is a refund due for a deceased taxpayer, the CRA issues the cheque to the Estate of the Late Taxpayer.

    If the deceased's bank account has been closed, you must check with your bank to see if they will cash the cheque. If the deceased and spouse held a joint account, the cheque can be deposited into the joint account.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  212. W 02/19/2014 at 3:26 pm

    Still working, but receiving a work pension & Canada Pension with no tax taken out & putting them into a TFSA should you be taking out income tax out of these pensions first?

  213. Hi W,

    I would advise so, if you need to do so.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  214. Lawr 02/19/2014 at 3:28 pm

    Recently sold my personal home in India. How do I account for the proceeds. Tax was deducted at the time.

  215. Hi Lawr,

    You must report the sale on your Canadian tax return as a capital gain from sale of personal use property.

    Any foreign (India) tax paid can be applied as a foreign tax credit on your Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  216. Gail 02/19/2014 at 4:04 pm

    My husband works in Northern Nunavut. We live in NS. Are there tax brakes for him?

  217. Gail 02/19/2014 at 5:08 pm

    My husband works in Northern Nunavut. We live in NS. Are there tax breaks for him?

  218. Hi Gail,

    Without having access to your husband's tax documents, I would guess most certainly, but check with your tax preparer to confirm the special deductions avialable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  219. Mark 02/19/2014 at 5:10 pm

    During 2013 I performed some seasonal work. My employer paid me weekly by cheque for hours worked but with no deductions. How do I file a return? Am I considered in some way as self employed? I earned less than 15K.

  220. Hi Mark,

    Check with your employer for your T4 slip.

    If he didn't issue one, you're considered self employed and must report your income as such on your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  221. Tony Azar 02/20/2014 at 12:21 am

    Dear Sir,
    I am a Canadian resident but living and working abroad while my family and children living in Canada.

    my children are pursuing their studies in Montreal Universities and my wife does not work.

    Do I need to declare my income tax for my earnings? you should note that I am transferring my salary to Canada every month.

  222. Joel M 02/20/2014 at 10:45 am

    Hi,
    I live in Quebec.
    My annual revenue was $74,696 fed (79,515 in QC incl. private insu.)

    I get a car allowance of 7800 annually and a gas card that used for $2,829. (Line L of RL-1 was 10,672.79). I use my own car 80% work / 20% personal.

    I was wondering, am I entitled to deductions? What can I write off.

    Thanks,
    Joel

  223. Hi Tony,

    Yes, you are required to report your world-wide income on your Canadian tax return.

    You are a factual tax resident of Canada as a result of supporting your family in Canada.

    Any foreign tax tax paid on your foreign tax return can be used as a foreign tax credit on your Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  224. Hi Joel,

    You've only provided detail that you receive an auto allowance from your employer, based on this you can have the ability to deduct from the auto allowance received any ACTUAL COSTS YOU PAID for the operation of your vehicle.

    You must obtain from your employer a signed Declaration of Employment to be able to claim these deductions: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  225. Barry 02/20/2014 at 2:59 pm

    I moved to the province of Ontario from Quebec, I received a T4 and a Releve 1 for my health benefits plus I have extra taxes withheld from the province of Quebec. When filing my tax return how do I get back the amount withheld.

  226. Hi Barry,

    Simple... file your tax return.

    Be sure you report your provincial residency accurately... if you moved to Ontario from Quebec BEFORE July 1, 2013, you report Ontario as your province of residency. If you moved to Ontario from Quebec after July 1, 2013, you report your province of residency as Quebec.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  227. John 02/20/2014 at 3:03 pm

    I have an OMERS pension of $52900.44 for 2013 plus a RRIF income of $5000.

    How much of that combined can I split with my spouse?

    Thanks
    John

  1. Hi John,

    You are able to split up to 50% of the pension, not the RRIF, with your spouse, depending upon her income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  2. Cecile 02/20/2014 at 9:08 pm

    Hi,

    As an out of province student from Montreal studying in Winnipeg, I will be filing income tax returns from Winnipeg. I have a dentist receipt as well as tuition from Concordia University and University of Manitoba along with bus pass receipt from both provinces. When filing my income tax return, am I able to add the dentist receipt from montreal + bus passes receipts onto the Manitoba income tax return?

    I moved to Winnipeg for school as of Sept 2013. This means I do not need to file a Qc income tax?

    Does Manitoba hold a separate income tax filing system like QC or is it a 2 in 1 (federal and provincial combined?

  3. Hi Cecile,

    As a student from Montreal studying in Winnipeg, why would you assume you are a Manitoba resident and file a Manitoba tax return?

    Revenu Quebec would be contacting you after tax filing time requesting their portion of income tax.

    As a student you do not have permanent residency and especially, if you resided in Quebec for more than half the year, you are definitely a tax resident of Quebec and must file a federal and provincial tax return as such.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  4. David 02/22/2014 at 3:05 pm

    Hi,

    I own my home and am considering buying a seasonal residence in the US. If I partially fund the purchase by mortgaging my fully paid for primary residence in Ontario, can I claim a tax deductions for the interest costs of the mortgage? If not, do you have advice about other options to reduce the cost of borrowing to make a real estate investment?

    Thanks!

  5. Hi David,

    Purchasing a seasonal property is not considered a tax deductible transaction... the property purchased would need to be an income earning property (rental).

    Utilising the equity in your home to purchase real estate for personal use would not entitle you to reduce the cost of borrowing.

    In order to be am to claim a deduction of an expense, there must be income to deduct it from. If you purchase a seasonal home, it generally is not an income producing property.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  6. Dan 02/24/2014 at 10:34 pm

    I received a large severance package in 2014, is it possible for me to file a T1-ADJ with CRA to reverse my RRSP deductions claimed in 2012 so as to get back my 2012 RRSP contribution room to be used in 2014's tax filing ? My rationale is, since my marginal tax rate in 2014 will be much higher than my marginal tax rate in 2012, if I were able to back out my 2012 RRSP deduction for use in 2014, I'll be saving myself some tax $. Do you think this is a workable idea ?

    If CRA allows me to reverse my 2012 RRSP deduction, besides owing CRA the difference in taxable amount, will CRA charge me interest for the difference, and if so, at what rate ?

    Thanks.

  7. Brenda 02/24/2014 at 10:35 pm

    In Quebec, do we, siblings, have to declare land sale amount that was inherited 5 years ago and sold last year.

    Is there an exemption in capital gains?

  8. Hi Brenda,

    No, you are not exempt from a capital gain on your inheritance.

    You are required to report the sale and gain on the property since the date you inherited it.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  9. Clarey 02/24/2014 at 10:39 pm

    If you are required to work out of province can you claim travel expenses and flights? Can you claim these on your income tax and what is required.

  10. Hi Clarey,

    Depending on the purpose of the flights and travel, yes, you may be able to claim a deduction.

    You will be required to first obtain a signed T2200 form Declaration of Conditions Employment from your employer to enable you to claim the deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  11. Markus 02/25/2014 at 12:35 am

    Hello,

    If my 2012 notice of assessment says that my RRSP deduction limit for 2013 (amount A) is $20,000, does it mean that I can claim $20,000 in contributions?

    Thanks.

  12. Saym 02/25/2014 at 4:27 pm

    I owe my 2 kids onatrio child tax benefit and canada revenue stop my child tax and m returning ,and now i have 3rd one new born this month ,so m i eligible for the 3rd one ?or they will also not issue my 3rd one child benefit ?
    Thanks

  13. dave 02/25/2014 at 8:11 pm

    I work in the US on a TN. I file taxes in the US and in Canada. I have dividend income (re-invested) from US shares which is coming to me in Canada - I fill in a W-8BEN and the US withholds taxes. Now that I am in the US, if I change my address to my US address, presumably I would not have to file a W-8BEN and would not have to pay the withholding taxes. The income is around 6000. Is it worth the hassle to switch addresses?

  14. Amanda 02/25/2014 at 10:29 pm

    Can I claim contributions to a LIRA on my income tax?

  15. Jimmy 02/25/2014 at 10:30 pm

    I recently moved from Calgary, AB to Winnipeg, MB back in Sept 2013. Most of my income was from AB but Turbo Tax says that I must file living in Winnipeg. Because of this I have lost 4k from my tax return because AB has a low tax rate. Is there anyway I can get a better return back as now I am only getting 1k?

  16. Ian W 02/25/2014 at 10:30 pm

    Hi,

    I have a house in the UK which even though I rented out I was losing money on as the rent did not cover the mortgage and I had to make up the difference each month from here in Canada. I also paid tax on the rent I received in the UK. It is worth more than $100k. Do I have to declare it on Canadian Tax returns? It is a personal asset not a business I just decided to rent it to keep someone in there and at times it has been empty.

    Thanks,
    Ian W.

  17. Hi Dan,

    Anything is possible... if the T1-ADJ was accepted, yes, you would be assessed interest back to the filing due date of 2012 and the prescribed rate at that time and going forward (see CRA for prescribed rates).

    Why not just ask your employer to transfer the severance into your RSP and claim for past service, this amount would be over your regular contribution limit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  18. Hi Markus,

    Yes, if you have the cash (or credit) and make the contribution before the 2013 deadline of March 1, 2014.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  19. Hi Saym,

    Your question is beyond the scope of this forum, please contact Service Canada for resolution.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  20. Hi Dave,

    Simply changing your address would not be sufficient... you woulld need to change your agent/brokerage to an US based one.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  21. Hi Amanda,

    Yes, you can claim contributions to a LRSP, as long as you have the official tax receipts to do so.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  22. Hi Jimmy,

    Turbo Tax is wrong... using a consumer tax software package will not allow you to claim the intricacies and nuances available from a tax professional.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  23. Hi Ian,

    Yes, the UK rental income/loss MUST be reported on your Canadian tax return.

    If, in fact, the rental is a loss for you, it is beneficial on your Canadian tax return as well as the foreign tax paid can be claimed as a credit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  24. Frank 02/27/2014 at 4:33 pm

    Hi,

    I was hoping you could clarify income splitting for me. I will be retiring at age sixty four with a defined benefit pension from the company I work for, I will also be eligible for a CPP pension. Will I be able to split both pensions with my wife? My wife will not have any pension income and will not be working.

    Thank you

  25. Judy 02/27/2014 at 4:34 pm

    We bought a house to fix up in Aug, 2013. We will be selling it this spring 2014. Can we hold the renovation expenses from Sept. – Dec. 2013 until after we sell the house and add them to our 2014 tax return?

  26. Amanda 02/27/2014 at 4:36 pm

    Hello,

    I just want to clarify an earlier question that I asked.

    I quit a job in Dec 2012 and chose to remove my funds from my HOOPP pension plan. I received a small lump sum payment and the rest was transferred into a locked in retirement account. These payments were received April 2013. I was sent a T4A to claim the lump sum on my income tax. Can I also claim the money that was transferred into the retirement plan under RRSP contributions?

  27. Anoja V 02/27/2014 at 4:40 pm

    Hi there,

    I have a couple of questions; I make 50k, live in Ontario, no assets or expenses other than student loans which I have not started payment for until February.

    Question 1: I am considering paying my student loan in full at once so I do not have to pay $16,000 worth in interest for 9 years with a payment of $372 per month. I know that I can get some credit for student loan when filing taxes when I pay little at a time. What is the best way to pay student loans? How much credit can I expect? I am concerned that it might not be worth the credit.

    Question 2: How much should I be contributing to RRSP?

    Thank you so much! I am thankful for this site.

    Regards,

    Anoja V.

  28. Hi Frank,

    At this time, you are only able to split up to 50% of your non-CPP pension income with your spouse.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  29. Hi Judy,

    Unless this is a regular business you conduct (flipping houses), the expenses you incur to renovate the house for sale are not expenses, but actually additions to the cost of the house.

    You must retain all receipts and payment records so as to use them to revised the ACB (Adjusted Cost Base) of the house so it will reduce the capital gain as a result of the sale.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  30. Hi Amanda,

    As mentioned previously, if you receive a tax receipt for the pension transfer, you would be able to claim the contribution deduction... sounds like you won't or haven;t received a tax receipt, so you will not be able to claim the deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  31. Hi Anoja,

    A1. If you have the cash, use it to pay the loan off... there is no benefit in accruing interest for a tax deduction.

    A2. As much as you can contribute!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  32. keri macfarlane 02/28/2014 at 11:31 am

    i have a question my daughter who is 20 did her taxes in BC she made 25000.00 have the year she lived in edmonton. her tax return was only 80.00 done at HnR block it just seem right to me i was wondering what you think

  33. Allison 02/28/2014 at 10:46 pm

    I'm thinking of quitting my part time job and living solely off my Dividend income, so I'm trying to figure out what my exact income will be. Right now I make $67,000 in eligible dividend income. The calculator above shows that in B.C I can make up to $72,000 in eligible dividend income (grossed up amount $97,980) without paying any tax, is this correct? I thought that I'd owe some taxes if my dividend income was over $50,000.
    Thanks for your help, and also for that calculator, it's a very helpful tool:)

  34. Jecaeah 03/01/2014 at 3:20 pm

    Hello there,

    I am an Incorporated Consultant from Canada who may be subcontracting through an IT firm in the US and get a contract with their client. I want to know what is the best option for me. I can also work as an employee under the IT firm (W2) and get my TN1 Visa is an option. I am more interested how I can work on a contract in US operating on my Canadian Corporation. What are the options?

    Thanks again in advance for the advice.

    Jecaeah

  35. Chris 03/01/2014 at 3:21 pm

    I am currently a resident of AB. I work there and rent there. Last year I purchased a home in NB and now commute bi-weekly from this same situation. Being a new home buyer I’ve read I am entitled to a tax refund. My question is do I have to be a NB resident to receive this refund and if not am I still entitled to my northern living allowance refund for working/renting in northern AB?

    Thank you.

    Best Regards,
    Chris

  36. Hi Keri,

    Based on your information, not quite certain what you are asking... if H&R did the tax return correctly, the price is what your daughter paid for H&R. If you believe she was over- or under-charged, that would be a matter of your opinion.

    On the other hand, if the tax return was not done correctly, your daughter over-paid and should have H&R correct it.

    How do you know if H&R did it correctly? You don't, until you find an error or CRA assesses a notice stating it.

    In our opinion, the price your daughter paid may be a fair rate. Much goes into processing a tax return and you get what you pay for... and sometimes the trouble too!

    Seeking out the cheapest tax preparation service is not the optimum way to go... what happens if the cheapo tax guy makes a mistake... are they going to pay your penalties and interest because of their error? are they going to stand by their work and present themselves to CRA on your behalf to uphold their work? is the cheapo tax preparer actually trained and knowledgeable in working on your tax return?

    These are all question you should ask if you're going to look for a cheap tax preparation service. And beware... you usually get what you pay for... cheap tax returns mean errors and fraudulent entries which CRA will always detect and go after you, not the tax preparer.

    What to look for in a reliable tax preparer:
    Look for someone with at least seven years' experience. You want someone who's handled a variety of tax situations, in both good and bad economic times.

    Questionable tax return preparers have been known to skim off their clients' refunds, charge inflated fees, and promise guaranteed or inflated refunds. According to the CRA, you could be dealing with an unscrupulous return preparer if they: Don't sign the return or put a preparer tax identification number on it; don't give you a copy of your tax return; promise larger than normal tax refunds; charge a percentage of the refund amount as a preparation fee; require you to split the refund to pay the preparation fee; add forms to the return you have never filed before; or encourage you to place false information on your return.

    As tax filing time approaches, this is a good time for us to warn our readers that it's your tax return and your money, don't trust it to a fly by nighter who will keep you in the dark and not answer your concerns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  37. Hi Alison,

    If you ONLY have dividend income and nothing else, the calculator is correct.

    Once you introduce non-dividend income, the tax does start at a lower tax marginal rate of income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  38. Hi Jecaeah,

    Whether you work as an employee for the US IT firm or as an employee of your Canadian corporation, you still are required to obtain a work visa.

    If you work as an employee for the US IT firm, you will be subject to withholding taxes which would not be refundable (Medicare, Social Security, State taxes, etc.). As an employee would be required to file a personal US tax return as well as report the income on your personal Canadian tax return.

    If you work as an employee through your Canadian corporation for the US IT firm, you will be subject to a 30% withholding tax, but his can be avoided by requesting an exemption under certain circumstances. As an employee of the Canadian corporation, the corporation would be required to file a corporate US tax return as well as report the income on it's corporate Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  39. Hi Chris,

    Effective the date you moved into the NB house, you are deemed a resident of New Brunswick and taxed accordingly regardless of where the income is earned in Canada.

    If you are enquiring about the HST New Home Rebate, this is usually filed and prepared through the home builder and payment is not made to you directly; unless you actually built the house yourself and qualify, there would be no tax rebate to you.

    If your residence is NB, your Northern Resident Deduction would only be prorated for the time you actually were a resident in the North.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  40. Hi Omid,

    Unfortunately, your mother is not your dependant and you cannot claim her medical expenses.

    You can provide the receipt to your mom or dad and they can claim the medical deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  41. Enrique 03/02/2014 at 9:53 pm

    What is the overall tax rate in Ontario for 2013 both provincial and federal?

  42. Hi Enrique,

    Your specific rate depends on your income... enter your gross income into the calculator above to obtain your personal rate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  43. sam 03/04/2014 at 5:24 pm

    Hi,

    I live in Quebec, but worked from home until recently. My company allowed me to have a home office but did not pay for it.

    When I filed the taxes I made claims for hydro, phone and internet for the portion of the house related to the business.

    Federal government refused my claims for internet and phone while accepting partial hydro expense.

    Is there a trick to getting them to accept the real home office expenses?

    Thanks

    Sam

  44. Hi Sam,

    There's no trick required... simply get your employer to sign a Declaration of Conditions of Employment link to cra-arc.gc.ca
    and you'll be able to deduct a prorated amount of all your house/home office expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  45. Eszter 03/05/2014 at 1:56 am

    Just a quick estimation please: 78000 CAD (56000 employment, 11000EI, 9000 CPP and OAC) income with one child (16) and a wife (full time student) who earned only 1600: how much would be the taxes in Ontario? We already paid 16000 income taxes. Is it possible that we still have to pay?

  46. Hi Eszter,

    Families must complete individual tax returns as a group so as to determine the estimated tax liability.

    Enter your income information into the above calculator to determine your liability and compare it to the income tax deducted/paid during 2013 for an accurate estimate of whether you are in a refundable or payable position.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  47. Bob 03/06/2014 at 3:08 pm

    Hi, I am a non-resident of Canada for tax purposes having lived in France since 2009 and in 2013 moved to U.S. in Aug. My family however moved back to Canada (wife&2 kids, wife doesn't work, we own property) in 2013. Do I need to file income tax in Canada even though France and U.S. have tax treaties with Canada and I will be filing in those 2 countries? If I need to, should I file as a married couple or separately but married to reduce taxes? How much taxes should I expect to pay with personal/family gross income of $150K?

  48. Margaret 03/08/2014 at 1:12 am

    Do I have to claim child care expenses in the year that they are incurred?

    I actually live in the NWT, but that Territory was not included in the list of Provinces to chose from, so I chose Alberta.

  49. Hi Margaret,

    Childcare expenses can only be claimed in the year they are incurred.

    You MUST report which province you reside within accurately as there can be fraudulent consequences for not doing so.

    If you are a resident of MWT, this must be how you file your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  50. Miranda 03/08/2014 at 1:16 am

    Last year, my husband made an error and both he an I claimed the Manitoba Property Tax Credit. I received an amendment today, and I owe the $700 credit plus $32.20 interest.

    I also have $2,874 in unused federal tuition, education, and textbook amounts.

    Can I use these credits to help offset this repayment? They are giving me 20 days to come up with this, and I am 37 weeks pregnant and only work one day a week! Even if I give them my entire paycheque and forgo all bills and food, this is not possible.

    Thank you.

  51. Hi Miranda,

    If you did not utilise the unused education, tuition credits during 2012, you can file an adjustment to have them apply in 2012.

    The education, tuition credits are not refundable so they cannot be directly applied to any balance owing.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  52. Alison 03/09/2014 at 11:29 pm

    I currently work for an employer in Quebec but am a sales rep in Ontario and reside in Ontario. I do not have to report to work in Quebec, but the payroll department and head office is there. They are currently taking off Federal and Provincial taxes as if I am located in Quebec QPP, QPIP etc. The issue I have with this is that I would like to ensure that when I file my tax return, I get the differential between the two provinces back as I am an Ontario resident. If filing in Ontario, how can this be done?

  53. Hi Alison,

    Filing your Ontario tax return accurately as a resident of Ontario will refund the excess tax differential, but it will not refund the QPIP, etc.

    You should discuss this with your employer to have them deduct as an Ontario resident.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  54. Bob 03/10/2014 at 11:45 am

    Hi again, I'm not sure if you saw my question so I'm reposting it... Thanks for your help!

    I am a non-resident of Canada for tax purposes having lived in France since 2009 and in 2013 moved to U.S. in Aug. My family however moved back to Canada (wife & 2kids, wife doesn't work, we own property) in 2013. Do I need to file income tax in Canada even though France and U.S. have tax treaties with Canada and I will be filing in those 2 countries? If I need to, should I file as a married couple or separately but married to reduce taxes? How much taxes should I expect to pay with personal/family gross income of $150K?

  55. Hi Bob,

    You haven't provided sufficient information to provide you with any answer... are you or are you not a tax resident of Canada?

    You state you are not a tax resident then go on to say your family moved to Canada in 2013 and you own Canadian property. How can you be a non-tax resident if you have possible taxable residency ties to Canada?

    Once you become a tax resident of Canada, tax treaties determine your tax reporting requirements so as to avoid double taxation.

    We suggest you contact our firm directly and provide explicit details of your family's residency for 2012, 2013 and 2014 to determine your actual tax residency and reporting requirements.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  56. Don 03/11/2014 at 12:17 am

    Hi,

    My wife and I are separated and have one son who lives with each of us 50% of the time. I have been giving her $200 a month, but there is no court order or written agreement requiring me to do so. Can I claim my son on Line 305, Amount for an eligible dependent.

    Thanks in advance.

  57. Hi Don,

    Child support is non-deductible, so this cannot be claimed.

    As for the Amount for an eligible dependent:
    You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

    - You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
    - You supported a dependant in 2013.
    - You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

    In addition, at the time you met the above conditions, the dependant must also have been either:
    - your parent or grandparent by blood, marriage, common-law partnership, or adoption; or
    - your child, grandchild, brother, or sister, by blood, marriage, common-law partnership, or adoption and under 18 years of age or has an impairment in physical or mental functions.

    In your case, the $200 a month is only a portion of the total support for the child. Since you and your wife are supporting your child, you can only claim the deduction if she does not and agrees you can (best to have this in writing).

    Additionally, you must state the date of your separation on your tax return to ensure your benefit and tax credits are calculated accurately.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  58. Michelle 03/11/2014 at 12:24 am

    Hi,

    I am a tenant, and decided to rent out a couple of rooms of the house I rent to help me meet expenses (I'm a single mother of 2). Do I claim the rent that I charge the room mates? If so, how do I claim it, as their rent is "all inclusive" (I do not split utility bills etc.) Each room mate pays $500 per month for a furnished room with shared laundry and kitchen. I did have to purchase various things to set this up (bar fridges, beds, microwaves, etc.).

    Thanks,
    Michelle

  59. Hi Michelle,

    Most certainly, you must report the rent income you receive on your tax return.

    Any general operating expenses the house can be claimed as deduction against the rental income, but only on a pro-rated basis of rental area to personal use area.

    You may miss out on eligible deductions by doing your own tax return, our firm would be happy to assist you and likely save you tax payable by knowing which expenses can be claimed and how much.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  60. Nicolle 03/11/2014 at 12:52 am

    Hello,

    If my spouse and I separated Oct 1 2013 without a written agreement thus far (just verbal) and he has been paying me spousal support... is that taxable ? And I want to confirm that the child support he paid thus far is not taxable for me and he can not claim that. ??? help

  61. Hi Nicolle,

    You are not specific in amounts for spousal or child support in your question.

    Spousal support is taxable to the recipient and deductible by the provider.

    Child support is not taxable to the recipient nor deductible by the provider.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  62. Proud 03/11/2014 at 3:15 pm

    Hello,

    I would like to know if I was to owe money to CRA due to income tax, gst, etc. and student loan and my husband passes away does that mean that I would lose life insurance left for me. If I was to pass away does that means the husband would than be responsible for my debts owing such as student loans, income tax, etc.

  63. Hi Proud,

    If you or your husband were to pass away while each or both owed money to CRA, the debt would fall upon the surviving spouse and remain a family debt to be repaid.

    Any life insurance policies you and your husband have would be paid out to the beneficiaries.

    If you or your husband were a beneficiary of the insurance payout, a portion of the funds should be used to pay off the family debt.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  64. J 03/11/2014 at 3:21 pm

    Hello,

    If I am considered a factual resident of Canada, but teach in UAE for 24 months earning a tax free income of 50,000 dollars per year, what would be my approximate tax payment to Canada?

  65. Hi J,

    The income may be tax-free in UAE, but no in Canada for a factual resident.

    Enter your gross income into the calculator above to determine your tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  66. Chris 03/11/2014 at 4:46 pm

    I'm going to get $25,000 in moving installments. $12,500 at the beginning, the rest 3 months later. After deductions the first payment will be $6,300. Way is 50% taken off when I make $49,000 per year. I'll be under that tax bracket?

  67. Hi Chris,

    Depending on how your payroll office processes the payments, they can manipulate the tax rates applied.

    Best enter your gross income plus the moving allowance into the calculator above for the best determination of your tax rate.

    Also, when filing your tax return for the year of the moving allowance payments, be sure to claim the eligible deductions against the allowance to reduce your taxable income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  68. Joan 03/12/2014 at 2:25 am

    I live in Quebec, but work in Ontario. I only received a T4... should I have received an RL-1?

  69. Hi Joan,

    If your Ontario employer withheld any Quebec source deductions, yes a Rel-1 should have been issued... some employers do not know this should be done.

    You should enquire with your employer, as there are additional employer contributions for Quebec source deductions which Revenu Quebec will either collection from you and/or your employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  70. Aldis 03/12/2014 at 9:38 pm

    Can I claim premium paid for health insurance while I travelled to the US? Commonly referred to as "travel insurance".

  71. Hi Aldis,

    Travel Insurance has several components including health, life, baggage loss, etc.

    If you are able to identify the health only component (not life, loss, etc.) then, yes, you can claim it as health insurance premiums.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  72. Terri 03/13/2014 at 2:59 pm

    Hi,

    I am wondering how much taxes would get taken off my monthly gross income of $2260.

  73. Hi Terri,

    To determine your after-tax pay, simply enter your gross annual pay (12 x $2,260 = $27,120) into the calculator above.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  74. Tara 03/14/2014 at 12:15 am

    I am a Quebec resident; I always file my taxes in Quebec. I over heard 2 friends talking on bus saying they are Quebec residents and work there; but they go to Ontario every year to file their taxes because they get 3x the amount then what they would if they filed in Quebec. Why is that? And are you legally able to? Wouldn't everyone do the same if they would get a lot more? Could it come back to haunt them?

  75. Hi Tara,

    Very good question!

    This is called provincial tax evasion and Revenu Quebec takes these issues VERY seriously with heavy penalties.

    Misreporting your provincial residency for tax savings is tax fraud.

    If these two talking friends commit the request of stating they are Ontario residents, and the tax return preparer abides in this act of fraud knowingly, both the taxpayer and the tax preparer can face legal action as well as financial penalties.

    If it were legal to choose the province with the least tax liability, everyone would do it and every tax preparer would encourage it.

    There is a reason why each province has it's own tax rates and provincial benefits are paid through income taxes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  76. Kim 03/15/2014 at 4:29 pm

    Can my son who is a apprentice in Toronto claim his gas because there is no transit in our neck of the woods, and he needs to be there for 6:00am?

  77. Hi Kim,

    While some auto expenses may be claimed by employees, gas expenses incurred to get to and from work are ineligible for deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  78. john roberts 03/16/2014 at 9:11 pm

    I work in Alberta coal mines, am a US citizen and commute back home every two weeks. The Canada income tax deducted from my paycheck is about $20K more than I would have to pay on the same wages in the US. Can I get the difference refunded from Canada? I fill out a US 1040 and 1116. thanks

  79. Pramod 03/17/2014 at 9:28 am

    Hi,
    I am working under TRV for a reputed company from past 1.5 years and I have submitted my taxes for the year 2012 and presently am ready with 2013.But one thing I have seen in my T4 which I need to get clarified is Provincial health care amount.
    I am on understanding that the annual amount paid by me for Provincial health care should be reflected in T4,so that I get some tax returns on the same.

    Now if I see my T4 card for provincial ,I see some differences.For the year 2013 I have paid 1377 CAD against my healthcare but the T4 is reflecting 563.20 CAD

    When I see my T4 card for Year 2012 also there is a difference.Amount paid against Health care is 255 CAD and the actual T4 shows nil against health care.
    I believe there is some calculations,but I am not clear how this is calculated.Can you please help me in understanding the same.

  80. Pramod 03/17/2014 at 9:31 am

    Hi again,
    Sorry I just forgot to mention the province in my previous request.I stay in Quebec province.

    Regards,
    Pramod

  81. Hi John,

    Not likely. You'll need to file a Canadian tax return to find out.

    The good news is that you may get a refund in the US based on the higher tax in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  82. Hi Pramond,

    If you have an issue with your T4, consult your employer... they can answer your question.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  83. Marcus 03/17/2014 at 11:10 pm

    Hi,

    We (myself and my common law partner) moved from the UK to Toronto on 5th September. She previously worked in the UK and paid taxes, whilst I was a student.

    Since moving to Canada, she is now a student and I am working. I have been filling out our tax forms and am confused about double taxation. I was surprised to see that she only receives a partial tax credit for her UK income, and appears to be required to pay some tax back. Is this the case or should it be covered by the double tax treaty?

    Any advice would really help.

    Marcus

  84. Hi Marcus,

    Yes, there are tax treaties in place to avoid taxation. The software you likely are using can either not be capable of the proper calculation or you are inputting information that is not accurate.

    If you moved to Canada in September 2103, the income earned in UK is not taxable in Canada.

    I recommend you consult with a professional tax preparer to ensure your tax return is properly reported so to avoid paying tax you are legally not required to pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  85. Ana 03/17/2014 at 11:16 pm

    I am filing my sons income tax... he resided in Ontario up until July of 2013. He relocated to Alberta for work and has reside there since July 2013. He worked in Ontario and now works in Alberta. How do I file his income tax when he lived in two provinces half of the year. He also attended college for his trade in Ontario and collected unemployment during his schooling. He currently has an Alberta Drivers license and pays rent in Alberta. What is he entitled to claim and which tax return would he use.

  86. Hi Ana,

    There is only one type of tax return he would file... T1 Personal Tax and Benefit Return.

    As for his residency, in which province was he resident longer? When did you obtain Alberta Health Card? There are several items that need to be reviewed to provide you with an accurate answer, unfortunately we can only guess and say he was a resident of Ontario for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  87. Luis 03/18/2014 at 3:42 pm

    Hi,

    I set-up my own personal business on the side in May 2013. I only registered the company name in January 2014. If the company name was not registered in 2013, can I still apply all of the expenses and earnings incurred sine May 2013 towards my 2013 income taxes.

  88. Hi Luis,

    Well it all depends on the type of business you registered... a sole proprietorship or a corporation.

    If you registered a sole proprietorship, yes, you can report the earnings and expenses on you tax return as business income.

    If you registered as a corporation, the expenses and income must be reported on your personal income tax return and anything effective the registration date belongs to the corporation and reported on the corporation's tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  89. Melony 03/19/2014 at 2:42 pm

    Do I qualify for the OETC?
    I worked out of the country for more than 90% of the year but my employment was with different employers. Employer 1 from January 01 to June 07. Employer 2 from June 16 to October 7. And Employer 1 again from November 18 to December 31. The T626 form says 6 consecutive months but also says you can have more than one employer.

  90. Hi Melony,

    Qualification for the Overseas Employment Tax Credit would depend upon your employer(s)... they are required to complete the form T626 to determine your eligibility.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  91. Nlind 03/19/2014 at 2:47 pm

    My spouse thinks I am doing our taxes incorrectly. Our tax returns are linked in the program I use so I don’t have to enter everything twice (ex: my info in his) but on his parents insistence he is saying we need to be filing married but separate not joint... to get the maximum return... because that is how they file. His parents get big returns (both retired) but I think it's because of their investments and such but I can't make him understand that. Am I wrong?

  92. Hello Nlind,

    In Canada, each taxpayer prepares their own individual tax return. Even if you have a partner (married, common-law, separated, etc.), you still file individually.

    If you have a partner, you are required to report their net income amount from line 236 of their return on your return for benefit calculation.

    There is no joint filing of spousal tax returns in Canada.

    PS. Your in-laws may get big refunds, because they are retired as they pay tax large instalments during the year, not because they jointly file tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  93. Parmod 03/20/2014 at 2:11 pm

    We are Canadian PR residing in USA and my wife is employed with Canadian company working from Home(USA) but getting paid in Canada only, Since her taxes are being deducted at source and due to that she is in receipt of T4 slip by her employer.

    Kindly suggest how to file Canadian taxes. Do let me know if I need to provide any additional information.

    Regards
    Parmod

  94. Hello Parmod,

    You and your wife would file Canadian tax returns just like every other Canadian required to do so, plus the requirement to report the Canadian income on your US tax returns.

    This is a rather complex situation where we suggest you seek assistance from a tax preparer experienced in cross border tax as you want to ensure you pay the least amount of tax in both countries.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  95. LORRAINE 03/22/2014 at 11:02 pm

    SPOUSE PASSED AWAY IN 2013. SOME T4′S SAY" ESTAtE OF JOHN DOE C/O MARY DOE. DO I FILE THIS ON HIS RETURN OR MINE.

  96. Hi Lorraine,

    Firstly, our condolences for your loss.

    Only T4s with your spouse's name (without Estate of) can be filed on your husband's tax return.

    His CPP Death Benefit and estate payments are to be reported on a separate T3 Trust tax return or a Rights & Things tax return.

    Any income received after death is not reported on the Final tax return for income reported up to the date of his passing.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  97. Tyler 03/24/2014 at 1:20 am

    My husband worked for two months this year, was laid off collected EI for two months. And the remainder of the year he was a stay at home dad not collecting EI and with no income. How does this effect him when filing his taxes? Does he file as an unemployed spouse? Will he have to pay back the EI? If I have a high income will I be expected to pay his taxes?

  98. Hi Tyler,

    Your husband's employment status has nothing to do with his requirement to file a tax return; he file as himself on his own separate tax return from yours. Information from your tax return is required to be reported on his tax return and vice versa: information from his return reported on yours. The tax returns are filed to not only determine tax refund/liability, but also to determine the benefits your family is eligible to receive.

    If the EI is required to be paid back, HR/Service Canada would notify him directly during 2013.

    If you have a higher income, it is solely your choice whether you wish to pay (if your husband actually owes anything) any tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  99. pawel 03/24/2014 at 3:15 pm

    Hello,

    I am a foreigner, who came to Canada [Quebec] in July to work. I was told, that because I worked for such time, and earned roughly 13000 I can count on large refund (I had my own insurance, employer wasn't paying during those first 6 months).

    However after seeing accountant, he calculated everything and what he told me is that I can get $370. As he described it, it is because I was working for 6 months and earned 13000 so its like I'd work for 12 months and earned 26000.

    Is that correct?
    Because everyone was telling me different, and other people in the workplace who came mid-year [in previous years were getting way over $1000 refund. Also on any "calculate your refund" websites the calculated amount is $1500-2500.

    Please help, Should I file an objection? And Look for another accountant? Or file it myself again?

    Best Regards,
    Pawel

  100. Hi Pawel,

    Without you providing details of how much tax was withheld from you pay, it's not possible to determine if you are eligible for a refund.

    If you resided/worked in Canada less than 183 days during 2013, you are not a tax resident of Canada, but are taxable in Canada on the Canadian earnings.

    If you do not realise it, it are taxable in your home country on your Canadian earnings for 2013 because you were in Canada less than 183 days for 2013.

    As a non-tax resident, you are not eligible for personal exemptions that residents of Canada are eligible to claim. This includes the $11,038 personal exemption amount.

    There are various issues which would explain why you may not receive a "large" refund. Don't determine your refundable position from what others (half year residents) say... some may have fraudulently filed their tax returns by providing incorrect information or their tax preparers may have not properly processed the tax returns, or they may have had more tax withheld from their pay.

    You cannot make any objection as you have not filed the return. If you are unhappy with the result you received, you can go to a different tax preprarer to check the tax return for accuracy before filing.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  101. Mel 03/25/2014 at 4:25 pm

    Found receipts from 2011. How do I check if these were already claimed on 2011 tax return? Do I have to amend 2011 or can I claim them in 2013?

  102. Bushra 03/25/2014 at 4:28 pm

    I am currently working in Saudi Arabia and status is non resident. I have rental properties in Ontario and pay the 25% tax on rental income. Under section 216 I file my tax return every year and want to know if I can claim travel expense and car rental when I come to Canada to look after my properties and do some other investment. How much I can claim?

    Could you please help me. I read the guide but answer is not very clear.

  103. Hi Mel,

    The easiest way to find out if you claimed the receipts is to check your 2011 tax return.

    You cannot use 2011 expense receipts on your 2013 tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  104. Hi Bushra,

    Without seeing the expenses you wish to use as a deduction, the only answer is: perhaps.

    Check with your tax professional preparer for confirmation of the deduction eligibility.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  105. Vincent 03/25/2014 at 9:30 pm

    I moved with my family to BC for work reasons and left our house in Ontario not rented for the whole year 2013. In what manner will it affect our tax filing for the said year of 2013 in our new province? Is there any tax implications for filing this year?- Vincent

  106. Hi Vincent,

    Your tax residency will depend on several items... you don;t say when you moved - this is a major one, another is if you obtained health cards in BC and terminated your Ontario drivers licence/health cards.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  107. Clara 03/26/2014 at 3:12 pm

    I was recently informed I have had greater provincial ties to Ontario for the past 3 years while I worked in (and paid taxes to) Quebec, so my province of residence should have been picked as Ontario (with income earned inside Quebec). The CRA suggested filling out the appropriate Ontario forms/schedules, and mailing to the CRA with an explanation and request for adjustment. My question is, will Ontario ask me to pay the provincial taxes owing or will they communicate with Revenu Quebec to transfer the provincial taxes I had already paid? (Also, will I need to contact Revenu Quebec as well about the adjustment?)

  108. Hi Clara,

    You should contact Revenu Quebec to advise them that you inaccurately filed your tax return and that you are submitting the request to adjust to the CRA.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  109. Dina 03/26/2014 at 3:15 pm

    I live common-law with my spouse for 14 years but we have always done our income taxes as single because he owes lots of money and I don't. Should we claim as common-law and what would be the repercussions?

  110. Hi Dina,

    You should be filing as common-law as there are benefits to be considered... tax credits and other benefits are available that you are missing out on because you are not filing your tax return accurately.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  111. Fred 03/26/2014 at 3:18 pm

    Great website!

    I saw your answer to the question about taxing "Profit from Forex trading", which was that profits would be taxed as business income.

    I have a small consulting business that I have incorporated. If I was to hold the Forex account under my business would profits be taxed at the small business rate? I am a resident of Ontario.

    Kindest Regards,
    Fred

  112. Hi Fred,

    With the limited details provided, the only answer we can provide you is 'perhaps'.

    Depending on how your tax return is compiled would generally be the biggest issue in the determining the answer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  113. Sara 03/28/2014 at 12:13 am

    My husband’s mother passed away. We paid the funeral expenses and then received the CPP death benefit to help with the costs. However, our question is why do we have to claim the CPP death benefit as taxable income but are not allowed to claim the funeral expenses to offset that income? It really wasn't income, it allowed us to pay off funeral expenses. Nothing went in our pocket.

  114. Hi Sara,

    The government doesn't give away 'free' money... the death benefit's purpose is solely to assist with the funeral costs.

    The CPP Death Benefit isn't 'free' money... just like the CPP payments your mother-in-law received starting at retirement, the CPP Death Benefit is taxable income.

    Also, keep in mind that the CPP Death Benefit does not belong to your mother-in-law, but her Estate (just as the cheque is made payable). As such, it is not included on her final tax return, but either her trust return or beneficiary's.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  115. Raffaele P. 03/28/2014 at 10:42 am

    Are you able to deduct previous years Ontario Health Premium surtax on this years Income Tax Return.
    Thanks
    Raffaele

  116. Nina 03/28/2014 at 1:23 pm

    Hello,

    My husband has unused net capital losses of other years totalling $18,000. These were incurred around the time of the Bre-X disaster. He has never had any gains since and has never been able to use the losses to offset gains.

    I am planning to sell mutual funds this year that will trigger a capital gain of approximately the same amount. Is there any way to use my husband's unused net capital losses to offset taxes on my capital gains? The mutual funds are currently in my name only.

    Thanks for any feedback or suggestions.

  117. Hi Raffaele,

    Sorry, income taxes and surtaxes are not a deductible item for income tax purposes.

    Private health premiums are deductible, but not government health surtaxes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  118. Carolyn 03/28/2014 at 7:51 pm

    First off, wonderful site! Now... I lived in QC for 11 years and moved back to ON three years ago so my question pertains only to the 11 years in QC. I work for the Ministry Attorney General as an "employee" but "self-employed" for the at home court typing. I had been filing my taxes properly, being paid in Ontario, working in Ontario and living in QC. The question is the "at-home self-employed work" (typing court documents) was actually PERFORMED/TYPED at my home in QC (although billed to clients in ON). So I'm thinking all of the income I claimed from the freelance (typing) I SHOULD NOT have claimed as work performed in ON. Can you offer some guidance as to what I should have claimed and IF I can approach the Govt of QC to explain?

    Thank you greatly!

  119. Hi Carolyn,

    If you performed work in your home office, while a resident of Quebec, the work was done in Quebec.

    Regardless of where the work was done, more importantly is where did you report as your residency... Quebec or Ontario. This is what determines your tax rate and tax liability.

    If you filed as an Ontario resident and Quebec Revenu has not tracked you down and demanded payment of tax, you have no concerns to worry about at this time as the statute has expired.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  120. Hi Nina,

    Unless the mutual funds were in a joint account with your husband since the purchase date, any gains belong solely to you.

    Any capital losses owned by your husband cannot be transferred to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  121. Marie 03/29/2014 at 8:03 pm

    What percentage of your wages can the CRA garnish from your paycheque for an outstanding tax debt?

  122. Hi Marie,

    Good question!

    The CRA can demand as much as 100% of the debt.

    Although the CRA will generally decide to take a lesser percentage, that amount is stated by either the courts or CRA.

    Generally the legal maximum is anything in excess of the gross wages less:

    (a) $180 per week, plus $30 per week for each dependant in excess of two, if the debtor is supporting his or her spouse, has a dependent child, or is the main support of a relative; or
    (b) $120 per week in all other cases.

    So if the taxpayer had no dependants and $800 gross wages per week, following the above rule, the garnishment maximum would be (b) $800 - $120 = $680.

    The CRA does not enforce such demands as above, unless the taxpayer is a high risk for non-repayment.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  123. Adam 03/30/2014 at 2:48 pm

    Hi

    I haven't filed my taxes for several years. Is it ok if I file my 2013 return before I file my previous years returns?

    Thanks

  124. Hi Adam,

    You can file your 2013 tax return, but if you have a refund due CRA will not issue it until you have filed your previous years' tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  125. Tholi 03/30/2014 at 8:30 pm

    Hello,

    I am a live in nanny and my employers accountant was filing my taxes for 2011. He filed for me as single and in 2012 I went to a new accountant who filed for me as married. My spouse lives in the Philippines and I support him and my family there. He has no income. Can I go back and adjust my 2011 refund that was already filed as single to change my status as married? How do I adjust it.

  126. Hi Tholi,

    Yes, you can adjust your 2011 tax return.

    You need to complete a T1ADJ form available here:
    link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  127. Darrell 03/31/2014 at 2:21 pm

    Hello,

    I could really use some help with this question.

    I am trying to determine what carrying costs or interest cost I can deduct while we were building a house (House B) to allow for the house (House A) we were living in at the time to become a rental property. In 2013, we were living in House A, and we built House B. We kept House A and now rent it out. During the building of House B there were interest charges on House B while it was being build. Since we were building a new house (House B), so that House A could be a rental property can we deduct the interest payment on House B while it was being built?

    Thank you in advance for you assistance.

    Darrell

  128. Hi Darrell,

    Great question!

    If you had taken out a mortgage on House A (future rental) to build/renovate House B (future residence), the interest would be able to be claimed as a deduction as House A would be an investment property.

    If the mortgage was taken out on House B, no deduction is available as it's intended purpose was to be your residence. The good news is that House B may qualify for the GST New Home Rebate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  129. Serene 04/04/2014 at 12:24 pm

    I am a first time self-employed (painter/home maintenance) in Ontario earned around $20,000 -gross in 2013. How much am I expected to pay taxes after deducting modest expenses like gas, telephone.

  130. Serene 04/04/2014 at 12:31 pm

    with reference to my previous question - as self-employed (Painter/home maintenance) earned around $20,000-gross in 2013. Can I report my income in line 130 as other income? or Do I have to complete form T2125.

  131. Hi Serene,

    As a first time self-employed person, you must complete a T2125 as you are running a business.

    And, as a self-employed individual, you cannot claim a 'modest' amount of deductions... you can only deduct actual expenses and that include precise auto expenses by the km driven for business over total kms driven.... see form T2125 for information how to calculate this.

    Lastly, your tax liability is based on your net income (after eligible expenses), not your gross income of $20,000... enter your net amount into the calculator above to determine your tax liability. To this amount add 10% of your gross for CPP Contributions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  132. Mike 04/05/2014 at 1:32 pm

    Hi,

    If I make $65k yearly, how much will I take home is been paid bi-weekly living in Ontario, Canada?

  133. Hi Mike,

    Enter your gross wages into the calculator above and divide the result by 26 to get you after tax pay biweekly.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  134. Nina 04/10/2014 at 5:32 pm

    My husband is in full-time care in a nursing home. He qualifies for the disability amount and has the disability certificate on file with the CRA.

    I am confused about how to claim his nursing home fees: I understand that if we claim all of his nursing home fees ($19,000) as a medical expense, we cannot claim the disability amount of $7697. I also understand that he is not required to provide a breakdown showing attendant care costs; that 100 per cent of full-time nursing home fees qualify as medical expenses.

    However, I have read that in some situations, it is possible to instead claim only $10,000 of nursing home fees PLUS the disability amount.

    It is not clear whether this option is available to our situation, or whether it is only an option for other types of residential care fees.

    We would prefer this as it is easier to transfer excess disability amounts from my husband to me, than it is to divide medical expenses between us. If he does not claim the disability amount, I will have to transfer some of our medical expenses back to his return, which is more complicated.

    I have scoured the CRA website and the Internet but cannot find a clear answer.

    Thank you in advance for any clarification you can provide.

  135. Hi Nina,

    Unfortunately, you cannot claim 100% of the nursing home costs as a medical expense, only the care portion of the costs. This is provided by the LTC upon request.

    Yes, there is a limitation on the full-time care expense eligible for the deduction... it is limited to $10,000 if you also wish to claim the Disability Tax Credit.

    If your total medical expenses were only the $19,000 for the nursing care, you can only claim a maximum of $10,000 between you and your spouse (on whichever tax return best utilises the credit). If you incurred medical expenses other than the LTC cost, those would not be limited to the $10,000 maximum.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  136. Olivier 04/11/2014 at 3:17 pm

    Hello,

    I am a French national who moved to Ontario in September 2013 immediately after becoming a Canadian permanent resident. Prior to Canada, I was in the US doing an MBA for two years. I would like to know whether there exist a way to claim my tuiton fees on my income taxes.

    Thank you, Olivier

  137. Hannah 04/11/2014 at 3:18 pm

    Hello,

    I was recently offered a job as a dog walker in which I'll be working as an independent contractor. I'll be given a paycheck every week, but taking out taxes will be my responsibility so I was wondering how much I should put aside each week? 30%?

    Thank you,
    Hannah

  138. Katie 04/23/2014 at 2:12 pm

    My husband moved to BC in September, while I remained in NB until February. Are we eligible to file our 2013 taxes jointly? If so, which province should they be filed under?

  139. Danny 04/23/2014 at 4:20 pm

    Hi,

    I recently started working as an independant contractor, as a business consultant - I work on the client's site all year, can I claim back transport costs to and from client site and also lunches while working there?

    I'm not up to date with what expenses are allowable under Ontario legislation.

    Thanks!

  140. Stephan 04/27/2014 at 9:01 pm

    Hi,

    My parents are selling to me and my wife the Duplex we all live in.

    They will be moving to the second floor and we will move to the main floor and basement with our kids.

    1) They have been wrongly using 50/50 as personal use of the building when filing their income tax. By correcting the ratio to 65/35, how many past years should they go back to correct their income taxes? Both Can & Qc.

    2) Since we were living on the second floor as their kids renting, when it comes to Capital Gain, is there considerations or rules we should take into account in the calculation?

  141. Jason 05/01/2014 at 10:46 am

    Hi,

    Great website with some helpful information. Since I see a lot of questions and answers here I would like to ask a question myself.

    I work overseas in the oil and gas industry. I work for a foreign company but am contracted out through a Canadian company and, therefore, I qualify for the Overseas Employment Tax Credit.

    I have already filed my taxes this 2013 but I am wondering if I should amend this return.

    During 2013 I became a resident of Brazil for tax purposes, because I worked there beyond a certain number of days. I don't live in Brazil in any capacity but due to my tax residency I had to pay approximately $6500 in Brazilian tax. The foreign company I work for paid this tax for me but I have a copy of my Brazilian tax return as proof of this payment.

    This money is not reflected on my T4 in any way. However, I am wondering if it's possible for me to declare this $6500 as foreign income, and then also claim back some money based on the fact this was tax paid to a foreign government. I am wondering if there is any benefit in doing so, and also if there is any way this would negatively affect my Overseas Employment Tax credit status.

  142. Derek 05/05/2014 at 11:18 pm

    I became a non resident in 1997 and I have been living and working in Singapore since then. I severed all financial ties at that time including closing of bank accounts and credit cards. I am planning to return to Toronto in 2016. I have recently put down payments on two condos in Toronto which are currently under construction. I opened a bank account and obtatined two Ca-nadian credit cards to help reestablish my credit. At what point do I have to start filing tax returns again? I currently pay my tax in Singapore. Thank You.

  143. Hi Olivier,

    Unless you incurred the tuition expense during the time you maintained Canadian tax residency, you cannot use the foreign tuition as a deduction on your Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  144. Hi Hannah,

    In addition to income tax, you'll be responsible for CPP contributions.

    Use the calculator above to determine your income tax rate. To that percentage add 10% and this would be the suggested rate to hold back for your tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  145. Hi Katie,

    Each person files their own tax return in Canada, no joint returns.

    You and your husband will each file your own tax return based on the legal residency during 2013. When you husband moved to BC, did he cancel his NB drivers licence and health card and apply in BC for these? If not, he is a NB resident for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  146. Robert M 05/06/2014 at 10:47 pm

    Alcoholic addict... 10 months sober... made very little money... and the money I made was not legal... have not had a T4 slip in 15 years.

    How do I come back online? I received a demand letter from Revenu Quebec on the 29th of April.

  147. Hi Danny,

    Unfortunately, commuting expenses and daily personal lunch expenses are not deductible as self-employment business deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  148. Hi Stephan,

    Your question is quite complex and would not be able to be answered in full in this forum... but here goes.

    Your parents would have to go back as many years as they have incorrectly been reporting the rental or 10 years, whichever is shortest.

    The complex issue here is that when the rental started, the duplex needs to be valued as it experienced a change of use at that time. The personal use portion of the house would remain personal use, but the rental portion would be capital property and subject to capital gains tax upon sale/transfer.

    This issue can come back to bite both you and your parents if not handled correctly... I suggest you contact a tax specialist to discuss the options and alternatives available to you to avoid a high tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  149. Hi Derek,

    When you state you became a tax resident of Brazil... are you very certain? You may have been a taxable resident in Brazil, but remained a tax resident in Canada.

    Living in Brazil for 183 days or more during 2013 doesn't necessarily make you a tax resident of Brazil and doesn't remove you as a tax resident of Canada. It's a great deal more complex in the determination.

    You should contact a tax specialist to determine your actual tax residency to avoid liabilities in both Brazil and Canada.

    If, in fact you did become a tax resident of Brazil, the Canadian Overseas Tax Credit would not be available to you to claim.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  150. Hi Jason,

    When you state you became a tax resident of Brazil... are you very certain? You may have been a taxable resident in Brazil, but remained a tax resident in Canada.

    Living in Brazil for 183 days or more during 2013 doesn't necessarily make you a tax resident of Brazil and doesn't remove you as a tax resident of Canada. It's a great deal more complex in the determination.

    You should contact a tax specialist to determine your actual tax residency to avoid liabilities in both Brazil and Canada.

    If, in fact you did become a tax resident of Brazil, the Canadian Overseas Tax Credit would not be available to you to claim.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  151. Hi Derek,

    Once you establish tax residency again in Canada (receive Canadian income), you will be required to file a Canadian tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  152. Hi Robert,

    It's pretty serious if you receive a demand from Revenu Quebec as they would know you have had income that is required to be reported... legal or NOT!

    All income, regardless if it was legal (through a T4) or gotten by illegal means (theft or sale of illegal items) is still reportable and taxable.

    All income must be reported on your federal and provincial tax returns.

    If you have not filed in over ten years, you should start with 2004 and work forward. Contact CRA and Revenue Quebec to obtain copies of the T4 and other slips issued to you for the years 2004 and forward so you can become tax compliant.

    You may not be tax payable for all those years, but if you do not file you will not know and also not be able to claim benefits for those years as well.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  153. Rod 05/06/2014 at 11:11 pm

    Hello,

    I'm asking this on behalf of my adult (25 year old) daughter who is currently working and attending university (UBC). She is enrolled in 9 credit/hours (exactly 60% of a full course load). She also earned about $10,000 over the year. Her T2202A shows her as a FULL-TIME student for 8 months. By claiming to be a full-time student, she is disallowed from claiming the WITB, which would be about $1000 credit.
    Everything I can find about full-time student status seems to indicated that it is up to the student to prove eligibility to claim full-time status. Since it is now beneficial to not be deemed a full-time student, is it sufficient to simply not claim to be a full-time student to qualify for WITB?

  154. Hi Rod,

    The T2200A indicates your daughter studied full-time, how can she disprove this?

    If she applies for the WITB, this will raise red flags.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  155. Lea 05/06/2014 at 11:16 pm

    Hi,

    I'm a salaried musician and would like to claim musical instrument insurance as an employment expense (musical instrument expenses). The problem is, I paid in full in Dec. 2012 for an insurance policy covering Dec. 1 2012-Dec. 1 2013, then switched to another company but didn't begin that term until January 2014. Since I didn't actually pay anything in 2013, can I still claim 11/12 of the payment I made in 2012 for 2013 tax purposes, since the coverage was for 2013? (I didn't claim anything for 2012.)

    Thanks for your help!

  156. Hi Lea,

    That is exactly the way to report your insurance expense... not when you paid for it, but when you used it; report 1/12 for 2012 and 11/12 for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  157. Pamela Crane 05/06/2014 at 11:19 pm

    I am worried... I mailed my income 8 weeks ago... I phoned, they said they don't have it. I am worried should I wait or send them my copies.

  158. Hi Pamela,

    Why did you not efile rather than mail in the tax return?

    If you mailed it in and it has not been processed, you may have made mistakes and held it up.

    Contact CRA to ask what to do.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  159. Al 05/06/2014 at 11:23 pm

    Hi,

    I have realized capital losses from previous years that I cannot use. However, my wife has recently sold some stock for a capital gain. When she reports here capital gain on her tax return, can she use my past capital losses from years ago to offset her recent capital gains?

    Thanks. AL

  160. Hi Al,

    Unfortunately, capital losses (and gains) are not shareable and can only be utilised by the taxpayer that incurred the losses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  161. Shane 05/06/2014 at 11:26 pm

    Hi,

    I am a single Dad, I have my children 50% but I pay their mother child support based on offset of income. I understand I cannot claim a child as a dependant (even though I have a family court order saying we are to claim one child each) Is there any other way I can claim a child for tax purposes??

    Something was mentioned I can claim one as a spouse?

  162. Hi Shane,

    Your understanding is incorrect, especially if you have a court order stating you can claim one child and claim the equivalent to spouse deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  163. Rod 05/06/2014 at 11:31 pm

    I work for the Toronto Police service and spend most of the year patrolling on bike. I heard there is a tax credit that is kind of a "food for fuel" for those of us who patrol/ ride a bike all day as part of their job. is this true? If so, how and where do I claim it?

    Thanks

  164. Hi Rod,

    Excellent question!

    You can indeed claim a 'food for fuel' deduction as an employment expense. You will require your employer to complete and sign a T2200 Declaration of Employment stating you are responsible for your required work related food...

    BUT... much like Celiac - you have to keep records of your food bills and then "compare" with an (emphasize the quotes) "average" person. Or just deduct the Booster Juice and Red Bull purchases throughout the day?

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  165. Cheryl 05/06/2014 at 11:56 pm

    Hi,

    Is there a tax deduction for damage to land from oil lease income? A neighbour told me his accountant deduction amounts for damage to land from their oil lease income.

  166. Hi Cheryl,

    If the oil lease is generating income you are claiming on your tax return, YES, you can claim an expense for land damages, but you must have had to incur the actual expense and paid to correct it.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  167. Riley 05/07/2014 at 12:02 am

    Can I claim my LRSP contributions the same as claiming RRSP contributions?

  168. Hi Riley,

    You can claim the contributions if you received a RSP contribution receipt.

    Generally LRSP are not contributed to because they are 'Locked In' preventing the owner from withdrawing the funds prior to retirement.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  169. Jessica 05/07/2014 at 12:10 am

    Hi,

    My fiance lived in Alberta for most of 2013 including Dec 31st 2013, but was visiting me in NS during that time. We had met while he was doing a temporary job here in NS in 2010. He finally was able to get a drivers licence during one of his trips to see me in NS (his suspension was up) and he used my address to get a drivers licence, though the apartment is in my name. He then was laid off for several months and stayed with me in the summer and worked here in NS before returning to Alberta in august. Also, he has a New Brunswick health card as his parents home province is NB and his father notified him that his health card had expired so he got a new one, not knowing he was now supposed to get a Alberta card.
    So where do I file his income tax? Ab, NS or NB? Can we still file common law like we did last year? This would be much easier if I could just take our stuff to H&R block, but they said I can't file both our taxes while he is away working because he needs to be there, so I am stuck doing them myself and I don't want to mess them up! PS I am a student with no income and he helps supports me financially, along with the support I receive from my inheritance. And we did live together in 2010, 2011 and some of 2012 before he moved to Alberta permanently. It was just too expensive to fly back to NS or NB all the time so he got a place in AB. He did not claim Alberta taxes for 2012 even though he was living there at the time however.

    I know this is complicated but I hope you can help.

  170. Hi Jessica,

    By your boyfriend's actions he actually is a resident of Nova Scotia, by obtaining a drivers licence. He should start by getting his health card issued from Nova Scotia to correct.

    Even though he works in Alberta, he travels back to Nova Scotia to be with you.

    You should both actually file as Common-Law as required in Nova Scotia.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  171. Steve A 05/10/2014 at 3:31 pm

    Can I claim my daughter for a portion of the year if she moved back in with me for the remainder of the year starting in October? She is under 18. She was living with her mother. Her mother was getting the child tax benefit and may still be collecting it. My income is too high to claim the child tax benefit, but I still want to claim her as a dependant.
    + I have always done my own taxes (for the last 10 years at least) and would like to see if there is anyone that can help me improve my income tax return. I make enough money now that I pay very high taxes and want to see if I am missing any opportunities.

  172. Hi Steve,

    The answer to your question depends on what your wife is claiming... if you can have an agreement with her that you can claim your daughter for part of the year, yes, you can do so on your tax return.

    Both spouses cannot make the same claim.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  173. gloria 05/10/2014 at 3:37 pm

    If I lived in Alberta for 11 months in 2013 and only moved to BC in December 2013, why is my income tax assessed on the BC rate for full 2013 year? Do I have any options?

  174. Hi Gloria,

    Yes, you do have options. If you lived in BC for eleven months, you are a BC resident for 2013.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  175. nishi 05/10/2014 at 3:43 pm

    Can proprietors take out money from their business for personal use without having any tax liability

  176. Hi Nishi,

    A proprietor is anyone that runs a business.

    For a self-employed proprietor, any money the business makes is the proprietor's and must be reported for tax purposes, whether it stays in the business bank account or moves to the personal bank account.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  177. Maxine 05/10/2014 at 3:49 pm

    My husband is self employed and the book keeper who completes his tax return never deducts, from his income, the HST that he has paid quarterly to the government . Is this correct?

  178. Hi Maxine,

    No, it is not... tell your husband to find a better bookkeeper.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  179. Kim 05/10/2014 at 3:51 pm

    My son lived in 2 other provinces in 2013 but returned to Ontario in December 2013. How do I claim the rent he paid in the other provinces?

  180. Hi Kim,

    You don't... You can only claim Ontario rent when you are a resident of Ontario.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  181. Maxine 05/10/2014 at 3:55 pm

    Can the government seize money from my husband's work RRSP investment to pay overdue tax payments? If so will he be charged a penalty by the investment corporation for withdrawal or is there anyway around this penalty?

    Thank you for your help.

  182. Hi Maxine,

    Yes, the CRA can seize assets (bank accounts, RSPs) to pay outstanding tax liabilities.

    As for any penalties by the RSP Trustee, that is up to the Trustee.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  183. Randy 05/10/2014 at 3:58 pm

    My mother passed away in 2013. All assets in the will go to my father. The CPP death benefit says to the "Estate" as does the CPP T4A(P) for retirement benefit. It seems that the retirement benefit should go on my mother's final return since the income occurred before her death? Can I put the death benefit on my father's income or do I need to do a T3 trust filing. I have no other items that would need a trust filing.

    The two articles on your website ("T4s made to “Estate of” and "Can I file my deceased husband’s tax return?") seem to say something slightly different.

    Thanks.

  184. Hi Randy,

    Our condolences for your loss.

    The CPP Death Benefit (not Retirement Benefit) is issued to the mother's estate as the benefit does not belong to your mother, but the estate to pay for the funeral expenses.

    The CPP Death Benefit is not reported on your mother's final tax return. It should be reported on the Estate's T3 tax return. If you do not wish to prepare a T3 tax return, the amount should be claimed by your father and he would pay tax on the amount.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  185. Mark 05/12/2014 at 12:00 am

    I am working in Alberta and paying taxes in Ontario, is there any deductions that I can use. I am living in a camp also.

  186. Hi Mark,

    There are several deductions available, but you would first need to have the permission and approval by your employer so you can claim them... obtain a T2200 and have your employer complete it to see if you are eligible.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  187. D Morrison 05/12/2014 at 12:05 am

    I work in Canada, from a home office, as an adult webcam model for a US based website. I want to claim the income as a home business on my tax return and deduct the appropriate expenses.

    Can I register this as a small business to deduct these expenses? Then, are my services taxable as both GST and personal income?

    Or, should I be claiming this as an income source much like a day job?

  188. Hi D,

    No need to register as a small business, as you are likely self-employed... what form of tax receipt did you receive from your US based promoter? If you received a 1099-Misc or similar, you are considered a contractor and therefore self-employed.

    As a self-employed person, you are eligible to claim expenses related to your work as tax deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  189. Michael 05/13/2014 at 7:07 pm

    My company over paid the government this year so we all received large returns from our income tax. Now the company wants the employees to pay them back. Is this legal?

  190. Hi Michael,

    If your employer over deducted from the employee's pay and remitted this amount to CRA, your employer CANNOT demand repayment.

    If your employer over deducted, any over contributions of EI, CPP and Tax would be refunded to each employee when they filed their tax returns. If the employer discovered they over deducted, they are able to contact CRA and request the portion of the over contribution belonging to the company as a refund or credit on their account.

    If the employer had discovered they did not collect enough EI and CPP from the employees during the previous year, they can collect that amount from the employees, but this would be confirmed by CRA and amended T4 slips issued.

    To simply answer your question, NO an employer cannot demand repayment of over contributions from its employees.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  191. kenn 06/05/2014 at 8:27 pm

    I'm a 58-year-old retiree receiving a $50,000 government pension and working part time earning an extra $25,000 annually. My wife earns about $30,000 a year and she has about $60,000 in contribution room in her RRSP. I have been using the "Pension Splitting" with my wife so that we both have nearly equal income levels, for tax purposes.

    I wish to collapse my $27,000 RRSP in one shot and invest the same amount into her RRSP in the same taxable year as my withdrawal, maybe 2015. My tax calculations tell me that this will almost balance the extra tax payable with the tax savings that my wife would get, so that they kind of cancel each other out for tax purposes.

    We will both fully retire in 2 years. My reasoning is that I want to collect CPP at 60 and do not wish to boost my taxable income by having my own RRSP to deal with. In two years the only source of revenue will be my pension and her $200,000 RRSP, which I’m thinking of converting into a RRIF.

    Does the calculation of offsetting tax payable to tax refund make sense? Am I not seeing some other tax issues?
    Does this make sense as an overall tax payable reduction method?

    Thanks for your help.

  192. Hi Kenn,

    Excellent question!

    The calculation of your tax payable from the RSP Withdrawal offsetting your tax refund due to the Spousal RSP Contribution does make sense.

    What you are not seeing is the the spousal RSP and cannot be withdrawn for several years or it will be taxable to you... best you check with a financial planner to confirm whether converting to a RIF will allow the withdrawal to be taxable to your wife.

    Additionally, if your wife/you decide to roll over the RSP into a RIF before she turns 71, minimum withdrawal amounts will apply. Using your $200k RSP as an example, if converted to a RIF at 60, the minimum withdrawal amount would be 3.33% or $6,667 the first year. The minimum percentage payout is worked out in the following way: 1÷(90 – your current age)

    Unlike your government pension, your wife's RIF income will not be able to be considered for income splitting with you until after she turns 65; similarly with her RSP, the income withdrawn prior to her turning 65 cannot be income split with you.

    These issues may create inequalities in your future income and tax calculations for several years.

    I hope this answers your question.

    Regards,
    Storoszko & Associates
    http://www.storoszko.net
    Tel/Fax: 647 367-3477
    Twitter: @Storoszko_Assoc

  193. Devender 06/18/2014 at 12:45 am

    I live in BC. My income this year would be $ 17, 000 only. Turning 60 soon and have applied for CPP also and considering to withdraw $ 20000 from my RRSP. I heard about reporting investment and property outside canada if it is more than $ 100,000. I wonder, if the investment is from Tax paid money in Canada, how much extra tax may occur for foreign investments worth 130,000

  194. ray 06/18/2014 at 1:48 am

    my annual income is $60,000, i know i have to pay average tax but what about the marginal tax do i have to pay that too, or if i dont pay my marginal tax do i have to pay that tax at the time of tax filing.

  195. Hi Devender,

    For every tax return you have filed, Canada Revenue asks if you own investments/property worth over $100,000 outside of Canada. If you do own investments/property worth over $100,000 outside and have not reported this to CRA, you have committed income tax fraud.

    You are required to report ALL world-wide income on your Canadian income tax return; this includes income from investments outside of Canada.

    Tax is calculated by your marginal tax rate; you can determine your tax liability by using the calculator above.

    Failing to report foreign income can lead to penalties and serious problems with CRA.

    I suggest you review your tax returns for the years you have failed to report your foreign income and request amendments be done to fully disclose.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  196. Hi Ray,

    When it comes to tax liability, you need not be concerned about marginal tax rates or average tax rates as they are mere calculations of the same thing.

    Marginal tax rates are also known as 'tax brackets'; your Average tax rate is the average of your tax brackets.

    When filing your tax return, your taxable income determines your marginal tax rate and applies calculation appropriately.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  197. Victoria 06/29/2014 at 10:35 pm

    I have a property in the UK that I am renting and I am taxed there before I receive any income do I pay tax again in Canada?

  198. Hi Victoria,

    Even if you are taxed in a foreign country for foreign income, you must report it on your Canadian tax return.

    Actually, to your benefit, you receive a tax credit in Canada (tax refund!) for reporting this income and the related foreign income tax paid.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  199. Caitlin 06/29/2014 at 11:07 pm

    Hi,

    I am a university student currently working out of province (in BC) for a summer internship. I had to drive up to Northern BC from Calgary (1100+ km), can I write off any living expenses in my 2015 taxes?

    Thanks.

  200. Hi Caitlin,

    Unfortunately, living expenses cannot be used as income deductions.

    You can, however, claim the travel expenses to and from your summer employment.

    You will need to obtain information from your summer employer for the deduction, you can obtain the claim form here: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  201. Josie 07/08/2014 at 7:29 pm

    My Father passed. He owned 2 duplexes. One duplex, the lower unit I believe was considered his principle residence. The second duplex I live in. My sister inherits the duplex with the primary residence and I inherit the 2nd duplex. There are no funds in the estate. How is the capital gain tax distributed. Does my sister pay the lower capital gain tax and I pay the higher capital gain tax since the duplex I inherit is not a principle resident of the deceased. Or do we each pay 50% of the capital gain tax.

  202. Hi Josie,

    Our condolences for your loss.

    Clarification is required: A duplex is one house with two apartments. Did you father own two duplexes (two house with two apartments each) or one duplex with two apartments?

    If you father owned one house with two apartments, the apartment which he lived in will not be subject to capital gain as it was his primary residence. The rented apartment will be subject to capital gain and tax. The valuation of the gain will be determined by the value of the apartment at the date it was first rented out (years ago, I suppose) so you will need to obtain the valuation at that date; this will be used as the cost base. If there were material differences between the upper and lower units, this may impact the valuation of the unit.

    Next, a valuation of the property at your father's date of death will be required to determine and calculate the proceeds of the 'sale' upon his death.

    The difference between the current valuation and the cost base will be the capital gain. This must be reported on your father's final or trust tax return, not your sister or yours. The property belongs to your father until the Will transfers it to the beneficiary.

    Any tax payable as a result of the capital gain will be payable by your father's estate. I suggest you seek the assistance of a tax professional to ensure the proper tax returns are filed and accurately.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  203. Jason 07/11/2014 at 10:14 pm

    In 2010 I voluntarily opened an HST# as I was about to become a bike courier and thought as a sole proprietor it was something I needed to do (not knowing that it was not necessary since I would earn less than $30,000/year). I worked as a bike courier for 3 years and always filled out my personal taxes using the T4A my employer provided to me, but never filed my HST return. I also never charged my employer HST and recently opened my HST account and saw that I owe $7,000.

    I have talked to two different agents at CRA and got conflicting opinions. One agent told me that because I never collected HST (and made under $30,000), that I could simply enter in a "0" amount on Line 105 on each of my three returns and all the money I owe would be cancelled. However another agent told me that it was my responsibility to collect the HST and that I still owe the full amount. How could I have two such radically different opinions despite providing them with what I thought was the same information? After researching relentlessly for 2 weeks I now have a greater understanding of how HST works, but in what scenario would the first agent be correct? What do I have to do or report to ensure that what little money I made as a courier stays in my pocket? Thanks.

  204. Hi Jason,

    First off... CRA call centre agents do not provide tax opinions or advice, they provide their own interpretation of the question you pose to them and they are merely reading off the CRA web site, just as you would do if you used the site yourself.

    Nothing they say can be considered an official opinion on your tax situation.

    Sadly, if you had investigated or obtained tax advice from a tax professional at the initial time you started your courier business you would not be in the spot.

    Regardless, if you voluntarily or not register for GST reporting, you are required to collect GST/HST on all your taxable sales (income); this would have be communicated to you at the time you received your GST registration. During the three years, you would have received requests from CRA to file the GST Returns (problem 1), unfortunately you ignored these requests (problem 2), you likely also neglected to report your GST/HST on your personal income tax return (problem 3)... this is why CRA sent you a GST bill for $7000 because you reported HST taxable sales on your personal tax return, but not on a GST Return.

    The first CRA agent you spoke with likely misunderstood your question and provided you with incorrect details. If the agent did respond to you with the scenario you posed, that agent is just plain stupid!

    As for going forward, you need to file the GST Returns requested by CRA for the years you have been GST registered.

    You can reduce the amount of HST you are liable to pay by offsetting the payable HST by the HST you paid out for supplies used in your business. To do this, you need to dig up every receipt you can that relates to your business (no fake, unrelated expenses) and report this as your HST ITCs.

    Once you have calculated your GST ITCs, you need to back out the HST from the income on your T4A as you are responsible to collect from your employer for your GST Return... at the same time you need to back it out of your income on your personal tax return and file an amendment to report this.

    One other problem you may have is that if you included the HST paid on the expenses on your personal tax return, you will need to amend those amounts on your personal tax return to use them on your GST Return.

    The $7000 HST bill you received is based purely on the income you reported. Since you likely had HST in your expenses, your actual HST bill will not be anywhere near $7000, but the interest and penalties will not be reversed.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  205. Rick 07/11/2014 at 10:40 pm

    I am moving to B.C. at the end of October. Can I still claim my Northern Living Allowance for the 10+ months I lived in Fort McMurray when I file BC tax. Or should I delay my departure until January 1?

  206. Hi Rick,

    There is no Northern Living Allowance, there is a Northern Residents Deduction.

    The Northern Residents Deduction is calculated on the time you lived/worked in a prescribed northern zone.

    If you leave a prescribed northern zone and relocate to BC, you eligible to claim the deduction for the period of time you lived/worked in the prescribed northern zone.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  207. john 07/14/2014 at 3:34 pm

    I work in Alberta, in a camp.
    I am there 20 days of the month, the rest of the time I am at home in NL.

    Most of me time is in Alberta can I file my taxes in Alberta
    Or can I move to Alberta as of Dec 31 and move to another Jan 1 and do this each year?

  208. Hi John,

    No, you cannot move back and forth on Dec 31/Jan 1 to change province of residency.

    You work in AB, you live in NF. Unless you have an AB drivers licence and health card, you are not able to file an AB tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  209. Greg 07/21/2014 at 1:13 am

    My daughter went to College in the US last year. She had no income at all in the year 2013. Can I claim her unused tuition fee if she signs a form stating I am using it. If so, it is only up to $5000 I can apply to my personal income tax as a credit. Do I have to send any forms in or just keep her sign over paper as well as the tuition paid to the University?

    thanks
    greg

  210. Hi Greg,

    In order for you to claim the $5000 education deduction transfer from your daughter, she needs to file her own tax return record the tuition/eduction credit and to make the transfer to you.

    A simple signed form will not suffice.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  211. cathy 07/22/2014 at 12:59 am

    Just starting up my own Travel Agency in my home. I will work under a main name but considered self employed.
    -I am an agent on behalf of a tour company so money collected on clients credit cards are processed thru the tour company,
    -They in turn will pay me commission and HST on the Commission.

    I have started this business early June, I have not yet registered the company nor have I applied for a GST #.

    Question:
    Do I need to register and have a GST #(no PST in this business)?
    or is it only when I hit a certain $ value?
    -If I have a GST # can I/do I claim back all GST that I have paid on office supplies to get started.

  212. Sandra 07/22/2014 at 1:02 am

    My friend passed away in Nov 2013. I filed her final tax return within 6 mos of her death. I have now received a 2014 T5 slip for Other income in the amount of 286.00. What do I do with this? Do I have to amend her final return?

    Thank you,
    Sandra

  213. Hi Cathy,

    If you are located in Ontario, it's HST you would need to register for, not just GST.

    The choice to register for HST is totally yours; yes, you do not need to register until your income reaches $30,000, but by registering you do get the advantage of being able to claim the HST you paid for all business expenses as a credit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  214. Hi Sandra,

    Our condolences for your loss.

    If you filed a final tax return for 2013 and received a T5 slip for 2014, the 2013 tax return is not the final tax return. You will need to file a T3 (Estate) tax return to report the T5. The T3 tax return does not get prepared based on the calendar year, but starts the calendar the day after death. Any/all tax slips which relate to income after death are to be reported on the T3. You may have to amend the 2013 tax return if you included income received after your friend's death and move it to the 2014 T3.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  215. Jason 07/26/2014 at 5:23 pm

    Hi,

    I am trying to learn about Corporate taxes referring to capital gains.

    Here is the thing I am trying to buy a house and property off a farmer in my area. He has recently doubled it's worth saying his accountant said he would lose half the money on capital gains. I will give you the info I have and maybe you can help me figure this out as I really need a property here for work reasons and there are not many around.

    His farm I believe is a family corporation. He originally bought the 160 acres (homesite and farm land) for $17500. We would be subdividing approx 40 acres (just the homesite and unusable farmland). We have come to a value of about $50,000 because of the house and services on the property. He wants more money hoping to get at least $50,000 in pocket. The house and property need a lot of work as they haven't been used or lived in for years. I guess what I am trying to figure out is what are his actual costs/penalties when it comes to capital gains (amount taxed, tax rate, etc. He does have quite a lot of land so I assume he has a fairly large farm income.

    Thanks for your help.

  216. hi Jason,

    Not quite certain why you are asking this question... if you are buying the property, you want to pay the least amount that is fair for the property. You should not be concerned about the Seller's tax issues.

    But, since you are asking the question... tell the Seller to find a better accountant... farmer's are exempt from capital gains and if it's a family corporation, even more tax advantages.

    As for the $50,000 offer... it is $50,000 in his pocket if his accountant knows how to file the tax returns properly.

    Don't give in to a sad story from the Seller about not enough money in his pocket.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  217. Keirstyn 07/26/2014 at 5:57 pm

    Hi,

    My partner and I live in Ontario and he is currently working away in Alberta. We are just young so are not to familiar with how taxes really work but a fellow he works with out there told him that he will end up owing a lot during income tax time. We are confused by this. He is already being taxed a lot every pay. What does this person mean? Will my partner end up owing during tax time?

  218. Hi Keirstyn,

    Without knowing how much taxes are being withheld from your partner's pay, we can only make an assumption to your question.

    Since Alberta has a lower provincial income tax rate, and you and he live in Ontario where you will file your tax return, which has a higher provincial tax rate, he will have a tax liability to pay at tax time.

    For an idea of how much the liability will be, use the calculator above to determine the tax for each province and subtract the Alberta total from the Ontario total for the net difference payable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  219. Megan 07/29/2014 at 4:16 pm

    Hello,

    I was just wondering how I figure out what I should be saving to pay in taxes in Alberta for claiming rental income? Rent is approximately $26,000 for that year. It would be my only income.

  220. Hi Megan,

    To estimate your tax liability, simply enter $26,000 as your regular income (rental income is regular income) and the calculator above will provide you the calculation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  221. Ference Manuel 07/30/2014 at 12:20 pm

    I am on work permit in Calgary, Canada and will start my work on 1st of August, I am on 95000/- PA all inclusive. I am married with 2 children and my wife is a housewife. SO could you please explain the tax system and monthly take home pay.

    Thanking you in advance.

  222. Ron 07/30/2014 at 12:42 pm

    Hello, I am hoping you can answer a question for me. I am in the midst of retiring from the Air Force and will have a pension of $39000 per year. I have accepted a new job in Alberta and will be making $60000. As someone new to Alberta and for purposes of budgetting without taking into account RRSP's or any other deductions what woudl I be paying in taxes for my yearly income? thank you for your time

  223. Hi Ference Manuel,

    We would not be able to determine your take home pay from the information you provided. Only your employer can explain that to you as take home pay is not only subject to incomes tax, CPP and EI deductions, but also specific employer deductions.

    To provide you with an idea of after-tax pay, simply enter your gross anticipate pay into the calculator above and it will estimate your after-tax pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  224. Hi Ron,

    For budgeting purposes, you can use the calculator above to determine your after-tax pay.

    Your pension would be considered regular income so add the annual pension together with the annual salary anticipated and enter the total as your regular income in the calculator above to provide an estimate of your after-tax pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  225. Lily 08/11/2014 at 8:36 pm

    My husband has chronic back pain. If he will buy a mattress that is recommended for his condition and he will get a note from his doctor, can the mattress cost be deducted as medical expense?

    This is acceptable in US, but I am not sure about Canada.

  226. Hi Lily,

    Unfortunately, you have been ill-advised.

    The IRS, just as the CRA, would not accept the claim of a recommended mattress for relief of chronic back pain as a medical expense deduction.

    If the condition your husband suffers from is severe enough to require a custom design mattress (specially designed for his needs) and was prescribed by an Orthopedist (not your G.P.), the expense would be acceptable by the CRA and IRS, anything less, the expense would not be allowed as a deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  227. MARK 08/20/2014 at 4:47 pm

    WHY is there such a thing as INCOME TAX in North America? How can I be charged for my OWN labour? I am not borrowing money from an institution. I am NOT making a profit!!!!!! I am trading my labour and time for cash. I could trade my time and labour for something in return, however, most people do not have what I need in material form to make the practice practical long term. I can't trade eggs for fuel at a gas station.
    If your answer is that my income tax money is going to pay for road repairs and library books, then my reply is that there are taxes on EVERY store product (15%) I purchase, which is more than enough to cover the entire nation's public service costs. There are a few countries / kingdoms, where there is NO INCOME TAX at all and these places are doing very well economically; ie, Kuwait, Libya, Dubai, Monte Carlo, etc. Why is that every so called democracy is really nothing more than a front for communism? Handing over 40% of your income to a defunct government is exploitation of the working class - pure and simple. The original founding fathers of America did not pay INCOME TAX. They had to pay tax on goods and even that was too much for them and more than enough reason to rebel against England. In Canada, all new immigrants (ALL CANADIANS ARE ALL IMMIGRANTS ON THIS LAND, because only the Native Tribes are native to the land), the Canadian police force, and the Canadian Military still financially support the Queen of England and swear allegiance to her. Canada is nothing more than a corporate entity of England. So let's call a spade a spade. And pray tell me, where is all this tax money going? The roads look awful. The schools are under-staffed. The hospitals are under-equipped and under-staffed. And yet... the taxes keep going up. Most seniors are barely able to support themselves after they retire. I would rather PAY NOTHING at all in extortion money (income tax and property tax) to a corrupt government but unfortunately I cannot afford a lawyer to take this matter to the supreme court, which is nothing more than an extension of the corporation of Canada.
    And yes, I do plan on leaving Canada as soon as I save up enough money to start my own business abroad.

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