Corporate, Individual & Personal Tax Preparation Services in Canada

Filing taxes for Canadians - Income tax in Canada

The Canada Revenue Agency (CRA) is responsible for all aspects of Canadian personal taxation. Canada defines the "tax year" as the period beginning on January 1 and ending on December 31 of the same year. You must settle with the government by April 30 if you owed income tax for the prior calendar year. Despite the fact that we will accept late submissions, there may be a penalty for those who submit late.

If you are paid by a Canadian employer, that employer is required to deduct and remit certain fees and taxes to the CRA on your behalf. These statutory deductions include, among others, income tax, Canada Pension Plan (CPP) contributions, and employment insurance premiums (EI). Your employer will ask you to fill out the TD-1 (federal) and TD1 forms so that the correct amount of income tax can be withheld from your paycheck. Employers are required to submit these forms. In order for them to comply with the law, this is necessary. A portion of each employee's pay will be deducted to cover their Canada Pension Plan (CPP) and employment insurance contributions (EI).

Did you know that in Canada, you are responsible for determining your tax filing obligations and income tax status? BOMCAS Canada Accounting and Tax Services can assist you with all of your tax-related requirements. In addition to remote and online tax preparation services, our bookkeeper also offers local and online accounting services.

Apply for tax deductions

It's possible that you can deduct some of your expenses from the taxes you owe. There is a possibility that the costs associated with moving, such as travel, travel accommodations, the transportation and storage of personal effects, as well as temporary housing, are tax deductible. You need to make sure that you keep all of the receipts that you get for the various costs that are involved in moving to Canada. However, if you are a student in Canada, you are not eligible for a deduction for moving expenses if the only income you anticipate receiving in the new location is from a scholarship, fellowship, or bursary that is exempt from taxation under the laws that are currently in effect. This is because scholarships, fellowships, and bursaries are not subject to taxation under the current laws. In addition, there are particular distance requirements that need to be satisfied; however, your accountant will work with you to ensure that you get the highest possible return on your investment.

Investing in a Registered Retirement Savings Plan (RRSP), paying dues to a labour union, and paying for child care are all examples of expenses that may be deducted from your taxable income.

You must Filing your taxes in Canada

You are required to file a tax return if you have taxable income or earnings on which you are responsible for making CPP contributions. You are required to include all of your earnings, no matter where they came from, in your taxable income. In most cases, you will be required to pay tax if the amount of your taxable income that is in excess of the amount of your basic personal exemption. Check out the tables of tax credits that aren't refundable to find out how much you're eligible for in federal, provincial, and territorial basic personal exemptions, as well as other tax credits. It is possible that you will be required to make contributions to the CPP if you have a net income from self-employment or pensionable income from employment that is greater than $3,500.