So it is tax season once more and you are struggling to understand whether you are required to file a return. Below we have answered the basic question of who is considered for income tax purposes.

Who should file income tax

If you fall into any one of these status living or working in Canada, you will be required to file your returns,
– Permanently living in Canada
– Leaving Canada temporarily or permanently
– Temporarily living in Canada

Here, we will discuss a little more in depth each status group,

Permanently living in Canada

Canadian Residents
If you are a resident or citizen living and working in Canada, you will want to file your return so you receive credit and benefit payments you are entitled to. If you are a legal representative of someone that had died in the year 2020, you may have to file a return for that person.

Newcomers to Canada – Immigrants & returning residents
If you are a newcomer leaving another country and settling in Canada, you will want to file your return as you may be eligible for the Canada Child Benefit, GST/HST Credit and other provincial and territorial programs.

Indigenous People
If you fall into the Indigenous People’s category, you are subject to the same tax rules as any other Canadian resident. We encourage you to file as you may be tax exempt under section 87 of the Indian Act based on your income. You are eligible and have access to all the same benefits and credits as all other Canadians.

Leaving Canada temporarily or permanently

Factual Residents & Government Employees
A factual resident of Canada is anyone who has left Canada however, has significant residential ties in Canada while travelling outside of the country whereby, you must file your return. You may be considered as factual in situations where you may be working, teaching, commuting, vacationing etc. outside of Canada and in another country. Government employees are usually considered factual residents

Live part-time in the U.S
If you live, vacation or spend most of the year in our neighboring country, the U.S. you are still obligated to file your return if you are still maintaining residential ties in Canada.

Leaving Canada – Emigrant
If you leave Canada to live in another Canada and sever your ties with Canada, you may be considered an emigrant for income tax purposes.

Temporarily living in Canada

If you are a non-resident of Canada with the following statuses, you will be considered a non-resident for income tax purposes.
– Non-resident of Canada
– Non-resident of Canada with rental income
– Deemed Resident
– International Student
– Seasonal Worker

Regardless of what status you are in, H&T Accounting Services are here to assist you with all your questions and concerns regarding your income taxes. Call today for a consultation!

Many people including huge businesses and corporations truly dread taxes when it comes to their money. These compulsory expenditures make the financial systems of all businesses quite complicated. At H&T Accounting Services, understanding tax laws are the fundamental basis of our expertise. Because we understand how these laws work, we know how to help you save big bucks. We hold strong knowledge in all areas of taxation and we work hard with our customers to save every dollar we can. 

Tax Planning 

One of the most essential areas of understanding taxes in any sort of financial situation is tax planning. This involves productive research into literature so that taxation errors are minimized and the savings is maximized. Special attention is given to large saving plans so we know we are getting you the best service possible. With continuous efforts to analyze plans that our customers can qualify for, we work above and beyond all your expectations. 

Tax Preparation 

We love to prepare and prepare well so that we have your back when you need us the most. We prepare year-round so that our customer, the taxpayer, is at low risk of getting into any auditing circumstances.  Year long, H&T Accounting Services provide exceptional bookkeeping as well that helps us stay on top of our game. With complete bookkeeping, tax preparation is simplified. We work hard to minimize errors so auditing becomes easier for everyone. We take the tax preparation phase seriously, so you are at ease. 

Tax Appeals and Audits 

Defending our customers during an audit or an appeal is also a critical phase of our work. We know our path right up to the Tax Court of Canada, if need be, so that you get the most out of any case. Appeals and audits can be stressful and confusing, but because we know how to take care of you and your finances, we are persistent in lowering any possible penalties and interest charges. 

Saving BIG Bucks!

Savings, savings and savings! Who does not want to hear that when it comes to the complexity everyone deals with over their hard-earned money? Many wonder what they are really able to save when it comes to their taxes. It is a fact that taxes can get quite complicated. This is why knowledge of the tax systems is crucial to the tax savings process. Our experts here at H&T Accounting Services have extensive knowledge of the many savings plans that our customers can qualify for. Everything from business income taxes to employment income taxes is on the table for us and we know how to help our customers!

At H&T Accounting Services, we plan, prepare, defend and yes, most of all, help you save! We have experts in all areas of accounting and bookkeeping services that work year-long to keep your finances in check. Do not wait any longer, let us help you get in control of your money! Call us TODAY….call us NOW!

F&O is a popular trading concept but usually the concept of Future and options is blurred in the minds of people and reporting the same for tax returns is a hassle concept even in the minds of many accounting expertise. The enlisted points will help you know all in detail about how to report Future and Options trading in tax returns. Go through the same and expand you knowledge depth.

• What is Future and Options (F&O) trading?

Future refers to a contract of buying or selling an entity or item in future at a price that is agreed upon today.

An option refers to the contract where one of the contracting parties has an option to execute or not to execute trade in future.

• Reporting F&O trading as business

When one opts for tax returns, F&O is reported as business. When you report the same as business you can always claim expenses that you have incurred. You must follow the under mentioned steps to report the same as business:

• Calculate your total income
• See if you lie on the profit side or on the loss side.
• Calculate all the expensed which means your rent, commissions and all your personal and business costs.
• Deduct the same from your income.
• The remaining income is regarded as the profit or the loss from F&O trading activity.

• Know what is ITR-4

Once you have earned business income, you must file Income Tax Return-4 which would demand your profit and loss sheet, balance sheet. If you have an issue over here you can always take the help of an expertise for the same.

• Do not run from reporting losses

Losses always carry tax benefits and reporting the same should be done mandatorily. Usually two types of business losses occur, namely speculative and non speculative losses. F&O loss falls under the category of non speculative loss. The loss can be adjusted from other sources of income except for the salary. In case your F&O loss remains unadjusted, it can carry forwarded for 8 years.

• Application of Tax Audit in F&O trading
  • In case of profit: The tax audit is applicable in case the turnover is greater than Rs. 1 crore or 8% more of the turnover, then only the income is taken into consideration and IOTR has to be filed. In this case maintaining book of accounts is not mandatory
  • In case of loss: The tax audit is applicable if loss is less than 8% or turnover exceeds Rs. 1 crore, than tax auditing can be done and in order to carry forward the process, maintain books of accounts as per norms is must.
• Maintaining books of accounts in F&O trading

Since F&O trading is considered as normal business income, the rules which are applicable to normal business are applicable here. The important rules for profit and loss are same as mentioned in the case of tax auditing. Keeping accounting records is otherwise mandatory for every business. You need to calculate the turnover and the positive and the negative sum you are carrying. Every business has a return filing ate and you must get your returns filed by the same and submit the tax audit report you have prepared.

Managing accounts and tax is a business aspect that helps determine overall profitability of any firm. There would be high and low times out there when it would not be easy to go for you with all the accounting issues. The accounting professionals based on Milton, Oakville will help you find a complete solution to all the tax and accounting issues you are going through at every step of your business activity. If you seek the expertise help, it would certainly prove out to be fruitful at your part as your accounts will be managed well and solutions to all your problems will be provided at its best and earliest.

You need not worry anymore about your accounting and tax problems as H&T Accounting services cater to the following problematic areas:

• Arrange for business finances

If you look forward to launch your startup and have an innovative approach but are yet not done with the financial arrangement then H&T Accounting services can help you arrange business finances. Even if you want to expand your business we can help you provide a solution with the same. We follow a two step approach in the same. We would prepare a business plan and would also help you present this business plan to the lenders who can help you arrange finances.

• Plan taxes at its best

Tax Evasion is never considered as tax planning. All the tax related issues you face can be solved by our accounting experts who have been providing assistance in the same for years. We would help you minimize or cut down the errors in tax planning you have been committing for years and maximize the plans that would help you save considerably. There are different tax saving plans for all the places and we will help you achieve the same.

• Find the solution to all your tax return problems

There are numerous areas in business which generally people do not know about tax returns. We would help you identify those areas which include charity tax returns, estate planning and trust returns, investment income returns, IT professionals’ tax returns etc. Planning tax returns is never considered as tax evasion and we would make the best efforts to grant you with best benefits.

• Manage your accounts in an error free fashion

Bookkeeping is an important task that is done by every agency be it small or large. Managing different accounts of books is a tedious task and requires work of accuracy. We allow bookkeeping to our customers as per their convenience based upon the location and type of service they want. Our accounting professionals perform bookkeeping in such a way that tax saving becomes easier at later stages.

• Maximize the profit

Profit enhancement or earning maximum profit is what every organization aims at. Profit can be maximized only if the basis of accounting is strong in any organization. We are also glad to help you in developing a proper business plan as well as proper marketing strategies such that you can conveniently cut off the extra costs you have been investing and maximize your profits to every bit.

Any accounting problem that has been bothering you for a while can now be solved with our accounting experts.

There are two terms that a tax payer in Canada comes across every time, the first one is tax credits and the second one is tax deductions. For a normal person the two terms may mean similar, but there essentially mean different.

Tax deductions work on the overall taxable income and reduce it, whereas tax credits reduces the amount of tax that you have to pay. To enable tax payers to understand these terms clearly these two terms have been put in Federal Credit, Deductions and Province specific credit.

Most of the tax returns in Mississauga that are related to children are available only for those who are less than 18 years of age. For other dependents, the income tax credits have been put under dependent tax credits. These credits should be used in a proper manner so you can get maximum tax returns in Oakville. It is best to contact a tax consultant in order to get the maximum tax returns.

Different Options available in Tax Credits

Tax deductions can be used by any person who is a permanent resident or a citizen of Canada. They can claim for tax returns in Oakville provided they fulfill the eligibility requirement. In case a person does not have enough tax to use these deductions, than they can be carried forward and can be utilized in the coming years.

One of the most common types of deductions available to people who pay tax and are below 71 years of age is RRSP. Depending on the limit that is given on the notice of assessment, a tax payer can use the maximum deduction through RRSP. This deduction can be carried forward and used in later years. Many taxpayers contribute to these tax returns every year and use it when maximum benefit is provided by them.

Annual union, professional or similar taxes are related to the employment of a person. They can be used according to the amount that is given on T4 slip. This deduction is not beneficial to a person who does not have any professional or union income.

Tax Credit for Taking Care of Your Child

In case you have kept a caregiver to look after your child when you are away at work then you are eligible for child care expense deductions. However, there is a restriction on the amount of deduction that can be earned on this clause which is a maximum of two-third of the total income.

This deduction is calculated automatically when a tax payers enters the numbers. 100% tax return in Oakville is not available in this clause. You need get in touch with your tax consultant on how you can categorize each of these deductions.

There are various other tax returns in Mississauga that are available. Your personal circumstances and your overall payable tax determine the amount of tax credit that can be had. A complete detail can be had from a local tax consultant in your area.

Tax return is that truth of life which stays with us as long as we are earning and something with which we have to deal with regardless of whether we like it or not. Just as the situation in our life changes, so does the rules and regulations that apply on us at the time of filing tax returns.

When we are single there are a set of rules that applies to us for filing tax returns in Mississauga and when we get married, these set of rules changes for us. Another change takes place when we file for divorce and get separated from our legally wedded spouse. Often people are in confusion as to how they should deal with different marital situation in their life.

One of the first question people faces is whether they should file separate or joint tax returns? The answer to this haunting question is that joint tax return can be filed only in situation when you were still married by the time the current tax year came to an end. Consent of both the husband and wife is required in order to do so.

When you file tax returns in Oakville in the joint form you are supposed to click on the box, ‘married filing jointly’. The clause to file joint tax returns does not apply on domestic partners or same sex couples. Now the second big question is when a person is considered as married?

You will be considered as a married person even if you are living at different location, but have not filed for divorce legally. You will be treated as married couple as long as you do not receive the final decree that terminates your marital condition. Till the time this happens you can file tax returns as married couple.

However, if you receive this final decree before the end of the current financial year, you can file tax returns as head of the house or as single. Now, when you are clear with when you have to file return as couple and when as single, the next big question is which situation is more beneficial to you.

This is no one answer to this question. Tax return condition of every individual is almost unique and it is for this reason they should consult their consultant as to what can be best for them. The main drawback of filing joint tax returns in Oakville is that both the person are equally responsible for filing the thing in time and the penalties, interest and deficiencies apply to both of them equally.

Now, there is a third scenario in this situation and that is when the married couple have a child. Situation also differ when the child is small and when he is a teenager or earning on his own. All these situations can be best judged by your individual tax return consultant.

Tax return calculation gives many sleepless nights to numerous people and not one but many, thankfully these days are short lived now. Tax return filers online can now take a sigh of relief as tax returns online has come up with certain changes that certainly release the tension. When we talk about calculation of tax returns Oakville, all the aspects can be taken care of easily by tax return online.

For all those who are earning, there is a legal obligation for them that they have to pay taxes and to save yourself from any kind of hassle it is better to do so with complete sincerity and on time. People who want to calculate the tax on their own can do so by using tax return online. Many people do not believe in the working pattern followed by bookkeeping, accounting and tax returns in Brampton firms. The fact is during tax paying season, every company is approaching these firms to file their tax return which means they are already overburdened. Therefore, many people do not want to risk things.

Moreover, by filing tax return on their own, these individual get profound knowledge of the working of their business and how to manipulate things according to their own advantage. When you file tax returns in on your own, you can take the help of certain software that are made specifically for this purpose. This software has everything ready in them for you. Just run the software & put in your personal information & tax returns in Brampton will be calculated within minutes. In case some of you are worried as to whether it is safe to file tax returns through online means or not, they need not to worry about anything as all is completely safe.

Our life has become really easy thanks to the advancement made in technology. Now we can do everything sitting at the comfort of our home. Gone are the days when you had to stand in queue for long hours and go through long paper work.

CRA is looking to reduce government deficits and increase tax collections. This is the reason why tax audits are on the rise. When CRA goes through the Tax Returns in Mississauga and other places to make sure expenditure, income and credits are accurately reported it is termed as tax audits.

A tax audit can happen even when there is no red flag on a tax return and the best way to avoid it is by being completely true about your deductions.

1. Maintain adequate and complete book of records according to laws pertaining to tax returns in Brampton and other places.

Tax payers in Canada need to maintain complete records and books according to Canadian tax laws for a period of at least six years. All proof of payments and receipts should be disclosed in the tax return. In case anyone is not able to provide related documents to CRA than they may face comprehensive tax audit.

2. File Taxes within Time limit

It is every taxpayer’s responsibility to pay the taxes in time. It will not only prevent them from paying additional money in the form of penalties and interest, but it will reduce the chances of audit. Show to the authority that you are a responsible citizen and you will never have trouble.

3. Keep yourself updated for rules related to tax returns in Oakville and other places

One and off changes are made in tax return policy. It is an individual’s responsibility to maintain the ratio of revenues to expenditure consistent for every year. In case there is fluctuation than it may take the attention of CRA.

4. Do not make any error

It is quite likely that a tax return may be called upon by CRA in case any error is found in the process of Tax returns in Milton. Before you file return, you should make sure everything is accurate and complete. In case a mistake comes to your notice after filing tax returns in Mississauga, it is better to take corrective actions before it comes to the notice of CRA.

Before we get to know why to file the Tax Returns we should know what are the different ways in which the different countries in this world generate funds for development. Out of different ways of generating funds for a country, filling of income tax returns by the people of that country is one way.

As the name itself suggest the filing of the income Tax Returns Oakville shows it’s the amount the people have to deposit as tax in lieu of their income to the government of that particular state.

In this pattern of generating funds by any country or state, the people of that country have to pay the taxes on whatever Income they generate through their Business Start-up, jobs and trades. This tax is paid on a set pattern of the particular state and depends on the amount which a person generates as income. The amount which is collected as income tax is used by the government for the development of that particular state or country.

There are different norms which have to be followed by people while filing the Tax Returns and these norms are different according to the state and government. These tax returns are audit able in accordance to the set patterns as this is major part of collection of funds which is used for development of state.

Tax Return and Audit Defense

As in others states the income Tax Returns Canada also.  The government is very particular about the income and taxes paid by the individuals, companies and the other business entities and the laws regarding the income tax are very stern. Time to time audit checks are done through the different agencies empanelled by the government so that there are no flaws and escape in the submission of the taxes.

As the filing of taxes is very important and compulsory for every one the people take help from the professionals like lawyers, chartered accountants and other tax advisers. Different software’s are used for calculating their income and taxes. There are many accounting software’s which are available for Audit Defense which are used by these professionals for calculating the income and tax on that income and further filling the returns of that tax. This kind of software’s are also named as audit defense software due to its properties as these software’s provide the security of calculating the income and taxes immaculately.

This software’s are used in Business Start-up by the professionals so that the individual filing return should not be penalized for the wrong calculation of the income and the tax on that income. There are many tax advisers and agencies which provide services for filing the Tax Returns.  These people charges differently according to the services provided. As majority of people has to undergo the process of filling the income tax returns so they need to hire these agencies or individuals for them.  This is the reasons the profession of accounting is in demand in most of the countries.