Filing Taxes
Filing Taxes in Ontario
When filing taxes as a resident of Ontario, Canada, there are a few important things to keep in mind. First, make sure you’re using the correct forms and filing within the deadline for personal income tax returns. Generally, the deadline for filing taxes is April 30th of this year (for last year's tax return). If filing late or owing money to the government on filing day, interest and penalties may apply.
If you are a self-employed individual, the Canadian Revenue Agency (CRA) offers you more time to file your income tax return. You do not need to submit it until June 15 of this year. However, if you owe taxes, remember that payment is still due by April 30th in order to avoid any penalties or interest charges.
The Canada Revenue Agency (CRA) website is a useful resource to use when filing taxes, as it contains all relevant forms and filing requirements. Along with paying federal income tax, you must also consider and pay for provincial or territorial taxes. Additionally, there may be certain provincial or territorial credits available to you in addition to the regular federal credits.
When filing taxes in Ontario there are many deductions that can be claimed; these include deductions for tuition fees paid, income-splitting opportunities for families, RRSP contributions, work-related expenses and more. To ensure you are taking advantage of all available deductions and credits, review all relevant guidelines for deductions carefully before submitting your tax return.
Which Forms Are Required for Filing Taxes
In order to file taxes in Ontario as a resident, you will need to complete a T1 form. This form covers income earned from employment (such as salaries and wages), investment income (including interest, dividends and capital gains), self-employment income, as well as other types of income reported through various information slips such as a T4A and T5.
In addition to filing the T1 form, you may also be required to complete some provincial forms. In Ontario, these include schedules such as the Form ON479 (Ontario Credits) and the Form ON428 (Ontario Tax).
You will need to report all deductions, credits, and other information on your tax return. This includes expenses for employment or business-related purposes, as well as other government programs that provide financial assistance. By filing these documents accurately, you can take full advantage of all available tax deductions and credits.
Finally, if you have a spouse or common-law partner, both individuals must complete their own individual tax return, along with any necessary supporting documents. This helps ensure each person is filing an accurate return and claiming all deductions and credits for which each of you is eligible.
Additional Forms and Schedules
You may also have to complete additional forms or schedules to the T1 form depending on your filing situation. It is important to review all filing requirements, as you could face a penalty if filing information is incomplete or inaccurate.
Below are three examples of additional documents required for filing taxes:
Form T2201: Disability Tax Credit Certificate – The purpose of this form is to obtain a disability tax credit from the government, for an impairment in physical or mental functions that is severe and prolonged.
Schedule 3 - Capital Gains (or Losses): This form is used to calculate and report any capital gains or losses realized in the taxation year. It includes information about dispositions of properties such as stocks, bonds, mutual funds, and more.
Schedule 6 – Canada Workers Benefit: The CWB is a refundable tax credit intended to supplement the earnings of low-income workers.
Please note that the above forms are just a few examples of the many forms that CRA requires to report income and claim deductions. Always make sure that you review all available forms and schedules for the tax year to make sure you meet the reporting requirements.
How to File Your Tax Return (Electronically or by Mail)
When filing taxes yourself in Ontario, you can choose to file electronically using NETFILE or by mail. Filing electronically often yields faster refunds than filing by mail, but will require you to use NETFILE-certified software to input your tax data and other information about yourself, your spouse and/or dependants. It is important to remember when using tax software that you are still ultimately responsible for the accuracy and timeliness of your tax return. If CRA has questions about your tax return, you will be in charge of dealing with them, rather than the software vendor.
When filing by mail, if you filed your return on paper last year, the CRA should send you the package to file on paper this year by February 21. If you have not received it, you may also download the package from the CRA website.
Getting Help with Filing Taxes
If you are not confident to prepare your own tax return, you can hire a professional tax accountant to do it for you. For example, Blackspark is a team of highly experienced accountants that will remove the hassle of doing taxes, while making sure that you receive the maximum available refund or pay the smallest amount of tax for your situation. For most taxpayers, the cost of working with Blackspark is comparable to paying for tax software, but without the anxiety and time commitment required to prepare your own return.
Conclusion
Ultimately, filing taxes in Ontario can be complicated but understanding the filing requirements and using the correct forms will ensure your filing experience is as smooth as possible. Make sure you're taking advantage of any deductions or credits for which you may be eligible so that you get the maximum refund allowed.
If the whole process seems to daunting, consider hiring a tax accountant to file on your behalf. The cost may be similar, but will free you from having to figure out everything yourself.
This blog post is intended to provide general information only and should not be construed as tax advice or opinions. Always consult a professional accountant for specific advice related to your situation. Thank you.
