As tax payers, here are the 3 most important tax terms we need to remember as we prepare our returns: Tax Deductions are deductions to your income. Tax Deductions lower your income. The lower your income, the lower tax you pay. Tax Credits are credits against your tax owing. Tax Credits are amounts that are deducted from your tax payable. They do not affect your income. Tax Benefits are amounts paid to you in the form of cheques or through direct deposit. These include the Child Tax Benefit, Universal Child Care Benefit or Personal GST Cheques.
A lot of Canadians are struggling as a result of the COVID-19 outbreak. The Federal Government has responded with several economic measures to support individuals and businesses. Other organizations including financial institutions have stepped up as...
The GST/HST credit is a tax-free payment aimed at helping low and modest income families and individuals offset the GST/HST that they pay. Generally, Canadian Residents aged 19 or older are eligible to receive the GST/HST credit. Those who are under 19 years old may also be eligible if they have a spouse or if they are a parent and they reside with their child. Payments are made quarterly to eligible recipients. Make sure you tick the GST/HST credit check box on the first page of your tax return to apply for this credit. If you are eligible but do not have taxable income,...
To request for a change to your tax return online, you simply have to log in to your account on the CRA website. Making changes online is applicable to your most recent tax return or your returns for the previous two tax years. Remember that you have to file separate requests for each tax year.If you prefer to request a change by mail, you would just have to complete a T1 Adjustment Request Form and mail it in along with documents supporting your request. You have 10 years to file adjustments to your tax returns if you do it by mail.
In cases where you have already filed your income tax return and realized that it was incomplete, you must file an adjustment request (T1 Adjustment Request Form) with the CRA as soon as possible. Making changes to your tax return either because you failed to include an amount from a T-slip you have just received or a deductible expense can be done online or manually (mail your request to your tax service centre).Remember, if you fail to give notice to the CRA regarding changes to your tax return, you will be charged interests and penalties. You can refer to the previous...