Sometimes it would be nice if someone left a comment, but then on the other hand, that would mean I'd have to figure out what they meant,
So...hi, glad you stopped by, happy you were here, but if you didn't leave any footprints other than an increase in the counter, you were still noticed!
25,000 views, WOW
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If you didn't make a claim.. and should have...are you entitled to a refund?
That's where the taxpayer relief provisions come in handy.
Under the 'fairness' rules, you can, for up to ten years, make a claim for a tax credit you missed, or if you overpaid your tax, request a refund.
But be careful, when you open up those years to audit, especially if they've been statute barred, you're once again open to review of the whole return for a further three years until they are statute barred again.
Form RC4288 can be helpful as its a pretty thorough review of what CRA is looking for when you ask for a fairness or relief request.
http://www.cra-arc.gc.ca/E/pbg/tf/rc4288/README.html
IC-07 sets out the guidelines for relief:
http://www.cra-arc.gc.ca/E/pub/tp/ic07-1/README.html
and for you history buffs, here's a little bit of the public relations commentary on the policy behind the relief program from December 2011:
http://www.cra-arc.gc.ca/gncy/pr/txrmcmpgnv_cmt-eng.html
And more information about refunding or reducing tax payable beyond statute barred is found here:
http://www.cra-arc.gc.ca/gncy/cmplntsdspts/rfndrdc/menu-eng.html
Is someone you know moving for medical reasons like accessibility, mobility or functionality?
Here’s the CRA web-page with information about moving and inconveniently there's no mention that medical moves are another reason to use Form T1M
Did you know you can claim up to $2,000 for medical expenses if the move is for accessibility, mobility or functionality?
Here's where it says you can claim as a medical expense in (l.5)
(that's an L, keep scrolling, it's a ways down the list under S. 118.2(2)(l.5) and I've put what it says below the link:
Notice the reference to S. 62(3), that's where you'll find all the rules about claiming moves in the Income Tax Act. Here's where to find S. 62 (3)
The form for moving created for anyone claiming moving expenses is T1M. There was a link to T1M on the main Moving info page (top link above)
or just click here:
It's been a while since I highlighted this information
Families: there's lots to know when it comes to personal taxes and claiming credits or expenses!
But not only that, there's other programs, sometimes dependent on those same credits, or based on income, means or needs testing.
This link is found under the Links > Complimentary Links > Families
And under that same section, there's other pages of useful links
All free and very useful!
Don't forget to sign up for the RDSP
...and please, open an RESP for every newborn!
Both programs provide for bonds (free money) but you have to have an account! There are some qualifiers, but for the most part, everyone who qualifes should have an open account, just to receive the annual payment on account. You don't have to put money in to get this money.
I know it takes a leap of faith to believe that the gov't is actually going to give you something for nothing, but in these two cases, it's true.
PHSP's for self-employed persons: This must be fairly new...
T4002 is the guide for Business and Professional Income for self-employed or professional or commission sales persons who file a T2125 to report their income on a T1.
You'll find there is a new section on PHSP (with out a line number, but there is a line on the T2125 form) and in the T4002, you'll find it by scrolling beyond Line 9270 –
Click on the link above, find Line 9270 and scroll down from there to see the whole instruction set as to what you can claim, as it goes on for quite a ways and looks like it could be a bit complicated.
You can deduct premiums paid or payable to a private health services plan (PHSP) if you meet the following conditions:
· your net income from self-employment (excluding losses and PHSP deductions) for the current or previous year is more than 50% of your total income;* or
· your income from sources other than self-employment** is $10,000 or less for the current or previous year;
· you are actively engaged in your business on a regular and continuous basis, individually or as a partner; and
· the premiums are paid or payable to insure yourself, your spouse or common-law partner, or any member of your household.
*For the purpose of this claim, calculate your total income as follows:
- the amount from line 150 of your 2010 or 2011 income tax return, whichever applies, before you deduct any amounts for PHSPs; minus
- the amounts you entered on lines 207, 212, 217, 221, 229, 231, and 232 on your 2010 or 2011 income tax return, whichever applies.
**For the purpose of this claim, calculate your income from sources other than self-employmentas follows:
- the amount from line 150 of your 2010 or 2011 income tax return, whichever applies, before you deduct any amounts for PHSPs; minus
- the amounts you entered on lines 135, 137, 139, 141, 143 (excluding business losses which reduced the net amount reported on those lines), 207, 212, 217, 221, 229, 231, and 232 on your 2010 or 2011 income tax return, whichever applies.
You cannot claim a deduction for PHSP premiums if another person deducted the amount, or if you or anyone else claimed the premiums as a medical expense. For your premiums to be deductible, your PHSP coverage has to be paid or payable under a contract with one of the following:
To read the whole set of instructions on how to calculate what you can claim, Open The T4002 Guide – find Line 9270 and scroll down until you find this section and read the whole thing! If you have or are thinking about enrolling in a Private Health Services Plan, this would be required reading along with IT339 and IT85...
Monthly tax study group for non CGAs
Here's the revised tax camp idea (thanks Lisa)
This is the very first Monthly TaxDetective Boot-Camp
This topic should be hot because everyone has them...
Click here for information about the inaugural meeting!
Here we go... PST transition
Deloittes has done a great job of highlighting what to expect for builders and others to do with residential properties in their Canadian Indirect Taxation edition today
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