8 Points to Remember Regarding Tax Return in Toronto

 Many Toronto business owners fear when it comes to preparing for the tax return. Considering this point in mind, we have accumulated eight points to help business owners have the right planning when the tax season welcomes them. Without further ado, let us move to the points:


  1. Never Forget about the Deadline: You need to make sure that you never become late while paying your due taxes on time. The deadline that you need to stick to is June 1; otherwise, you can get penalized by the Canada Revenue Agency (CRA). If you do not file your tax on time, you will need to bear the 5% fee on anything you owe to the Canadian government.

  2. Residency Status: Your residency status will determine your obligation to pay taxes; thus, you should know whether you are a resident or non-resident for tax filing purposes. With this, you can know about your responsibilities as a tax filer. The status will be determined by your residential ties with Toronto, length of stay, the purpose to stay, and other factors as well.

  3. SIN (Social Insurance Number): While working in Toronto, you should have your SIN. While you complete your tax filing document in Toronto, enter your SIN on the first line of: ‘Information about You’ area of the ‘Identification’ section mentioned on Page 1.

  4. Keep Your Statement of Remuneration Paid (T4): While filing for tax in Toronto, you will need a T4 to see how much income you made and how much tax you paid in the last year.

  5. Types of Taxes: There are three types of taxes that you will need to pay, including Income Tax, CPP (Candian Pension Plan), and EI (Employer Insurance). In Toronto, you will get a refund if you have overpaid any of these three taxes.

  6. The Expenses: You can be eligible to claim expenses, including medical (like doctor’s visits, prescriptions, surgeries), travel (like monthly transit passes), and business (like rents, supplies, and professional fees).

  7. The Tax Refund: Canadian tax year runs from January 1 to December 31. If you have started working in Toronto in 2019, you can apply for a refund from Feb 2020. If you have worked between 2011 to 2020, you can claim your refund in 2021, which means: After ten years. 

  8. How to File for the Process for Tax to be Refunded in Toronto?

For filing for the tax to be returned in Toronto, you can contact the Candian Tax Office or utilize a helpful tax agent.

Conclusion:-

For effective tax planning in Toronto, you need to take advantage of professionals who are experts at giving suggestions regarding profitable tax filing. Finally, remember the following eight points when you have to get involved in the process of tax filing:

  1. Make sure you do not miss the deadline.

  2. Know your residency status.

  3. Know your SIN.

  4. Keep T4 with you during the process.

  5. You need to know the types of taxes that you need to pay.

  6. You will need to know about your expenses too.

  7. Also, know when you can get a refund as a tax filer in Toronto

  8. Know the process of filing for taxes in Toronto.


GTA Accounting (https://www.gtaaccounting.ca/) is an accounting firm that offers top-notch accounting & bookkeeping services for small business owners in Mississauga, Toronto, and Oakville at a fair price.

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