Teachers School Supply Tax Credit

School Supply Tax Credit for Teachers

Teachers School Supply Tax Credit

Prime Minster Justin Trudeau’s proposal to teachers will be rolled out in 2016. Teachers who dip into their own wallets to buy school supplies are finally being offered an extra token of support.

The 2016 budget has introduced a new teachers School Supply Tax Credit for the cost of educational supplies. The credit is available to teachers and early childhood educators who incur the cost of supplies for the purpose of teaching or otherwise enhancing students’ learning in the classroom or learning environment. This new credit will allow an employee who is an “eligible educator” to claim a 15% refundable tax credit based on up to $1,000 in expenditures made by the teacher for “eligible supplies.” The credit would be worth $150 which is 15 percent of $1,000.

Teachers will qualify as eligible educators if they hold a teacher’s certificate that is valid in the province or territory in which they are employed. Similarly, early childhood educators must hold a certificate or diploma in early childhood education.

The list of allowable school supplies includes items like:

  • Bulletin board decorative items, such as borders and illustrations;
  • Construction paper and Bristol board for activities, flashcards, or activity centres;
  • Posters with instructions, such as punctuation rules or chemistry formulas;
  • Items for science experiments, such as seeds, vegetables, fruits, potting soil, milk, vinegar, coffee stir sticks, straws, spaghetti for building structures, etc.;
  • Specialized art supplies;
  • Games and puzzles;
  • Supplementary books (novels, non-fiction, and reference) for classrooms;
  • Supplementary technology for classrooms, such as tablets, laptops, graphing calculators, and projectors;
  • Stickers and motivational items;
  • Support software for teaching and learning purposes; and
  • Containers, such as plastic boxes or banker boxes for themes and kits.

Teachers must keep receipts to claim the tax credit.

To read more about the Teachers School Supply Tax Credit visits the Liberal website.

2016 Income Tax Deadlines

Important dates for 2016 (Individuals)

2016 Income Tax Deadline

2016 Income Tax Deadline

Individuals should make note of the below key dates impacting 2016 tax season:

2016 Income Tax Deadlines

Generally, your return for 2015 has to be filed on or before April 30, 2016. Since April 30, 2016 falls on a Saturday, individuals have until Monday May 2, 2016 to file.

Balance owing

Your balance is due no later than April 30, 2016. When a due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, your payment is considered to be made on time if it is received or it is postmarked on the next business day.

Registered Retirement Savings Plan (RRSP)

Deadline to contribute to an RRSP for the 2015 tax year is February 29, 2016.

GST/HST credit payments

If you qualify for GST/HST credit, the payments are generally issued on the 5th day of each quarter.

  • GST/HST credit payment dates
    • July 3, 2015
    • October 5, 2015
    • January 5, 2016
    • April 3, 2016
RESP contributions, 2016 charitable contributions and 2016 TFSA contributions

Deadline for RESP contributions, 2016 charitable contributions and 2016 TFSA contributions is December 31, 2016.


For more dates and other information visit the CRA website. For more information on the above dates that may impact you, contact Cheema CPA Professional Corporation. We are a Brampton and Mississauga based accounting firm. We can help you prepare your 2015 income taxes. Contact us for all your 2015 income tax and accounting needs. 


 

Brampton Accountant: 2015 Income Tax Checklist

Brampton Accountant: 2015 Income Tax Checklist

Brampton Accountant: 2015 Income Tax Checklist. Cheema CPA Professional Corporation is a Chartered Professional Accountant firm located in Brampton, Ontario. We provide professional tax and accounting services. Each year we put together a checklist to help our clients assemble all the information required for personal taxes. This checklist will help you get more organized and help us minimize your taxes. To download: Tax Checklist.

General Items

  • A copy of last year’s return
  • 2009 Notice of Assessment
  • Other years reassessments
  • Details of changes to your personal status such as dates of marriage, separation, divorce or widowed, births and deaths
  • Note consenting to provide your income tax information to Elections Canada
  • Installment payments
  • Details of foreign property holdings (if any*) including cost of property held

Income

  • Universal child care benefit (RC62)
  • Employment income (T4)
  • Pension income (T4A, T4A(P), T4RIF, T4RSP)
  • US social security
  • Old age security (T4OAS)
  • Investment income (T5)
  • Income from trusts such as mutual fund investments (T3)
  • Income from employment insurance (T4E)
  • Income from partnerships (T5013)
  • Workers compensation/social assistance payments (T5007)
  • Details of the sale of securities such as stocks and bonds (eg. trading summary from your broker)
  • Income from foreign investments
  • Spousal support payments received

Deductions General

  • RRSP contributions
  • Medical, dental, prescription drugs, nursing home expenses
  • Payments to a private health insurance plan
  • Charitable donations
  • Tuition fees/education amount (T2202A) for yourself or transferred from a dependent such as a child or grandchild
  • Interest paid on student loans c Professional dues, union dues c Public transit passes
  • Childrens participation in programs related to physical activity
  • Interest on loans assumed to purchase investments
  • Safety deposit box fees
  • Professional consultant fees
  • Legal fees paid to establish child or spousal support or to enforce a pre-existing agreement
  • Legal fees paid to recover wages from your employer
  • Details of people you support and their medical status
  • Child care receipts (for camp, list dates attended)
  • Moving expenses if you moved 40km or closer to work or school
  • Property taxes or residential rent paid and to whom
  • Political contributions receipts
  • Disability tax credit claim form completed by authorized health practitioner (T2201)
  • Spousal support payments paid
  • Adoption expenses

Deductions Employees

  • Declaration of conditions of employment form (T2200)
  • Details of expenses not reimbursed by your employer including travel expenses (eg. parking, taxis, bus fare), supplies and assistant salaries
  • Office rent if required as a condition of employment
  • Home office expenses if it is your principal workplace or used exclusively, on
  • a regular or continuous basis for activities such as business-related meetings; include details of rent paid, repairs and maintenance costs, utilities and if you are
  • a commissioned salesperson also property taxes and home insurance. Also indicate the total area of your home and the area used for your work-space
  • If you are a commissioned sales-person, details supporting advertising expenses, promotion, meals and entertainment
  • Motor vehicle expenses

Deductions Motor Vehicles

  • Total kilometers driven and kilometers driven just for work
  • Details of total expenses incurred for gas, maintenance and repairs, insurance, license and registration, loan interest and lease payments
  • New vehicle, purchase invoice/agreement

Unincorporated Businesses

  • Total sales revenue for the year
  • Total expenses listed by category for the year
  • Capital assets acquired (eg. computers and peripherals, furniture and equipment)
  • Home office expenses include details of rent paid or if you own your home, details of repairs and maintenance, utilities, property taxes, insurance, mortgage interest
  • Motor vehicle expenses

Unincorporated Businesses

  • Total sales revenue for the year
  • Total expenses listed by category for the year
  • Capital assets acquired (eg. computers and peripherals, furniture and equipment)
  • Home office expenses include details of rent paid or if you own your home, details of repairs and maintenance, utilities, property taxes, insurance, mortgage interest
  • Motor vehicle expenses

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2015 INCOME TAX

2015 INCOME TAX

 

Personal Tax Changes 2016 Tax Season

Personal Tax Changes 2016 Tax Season

Personal Tax Changes for 2016 Tax Season

Personal Tax Changes for 2016 Tax Season

Changes and Updates for 2016 Tax season

We will discuss the personal tax changes 2016 tax season in this article. Following key changes to existing services, credits, and amounts impact individual taxpayers in the 2016 tax-filing season:

  • Updated notice of assessment – The Canada Revenue Agency (CRA) has updated the format of the notice of assessment to be simpler. Taxpayers can now find the most important information about the assessment on the first page.
  • Universal child care benefit (UCCB) – For the 2015 tax year, the UCCB was expanded to children aged 6 through 17. Also, payments that parents receive for children under the age of 6 increased to $160 per month for each child. To learn more about the UCCB read our full blog post here. This Personal Tax Changes 2016 Tax Season was implemented before 2016.
  • Disability Tax Credit – This year, Canadians claiming the Disability Tax Credit (DTC) will be able to file their T1 return online regardless of whether or not their Form T2201, Disability Tax Credit Certificate has been submitted to the CRA for that tax year.
  • Children’s fitness amount – As of January 1, 2015, this is now a refundable tax credit available to families with children enrolled in a prescribed program of physical activity. For tax years prior to 2015, this credit was non-refundable. The Children’s Fitness Tax Credit allows you to claim eligible fees paid in the year up to a maximum of $500 per child (an additional amount of $500 is available if the child is eligible for the Disability Tax Credit and a minimum of $100 has been paid for eligible fees in the year). The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which an eligible fitness expense was paid.
  • Child Care Expense Deduction limits – As of the 2015 tax year, the Child Care Expense Deduction dollar limits have increased by $1,000. The maximum amounts that can be claimed have increased to $8,000 for children under age seven, to $5,000 for children aged seven through 16, and to $11,000 for children who are eligible for the Disability Tax Credit.

For more information on the above key changes that may impact you, contact Cheema CPA Professional Corporation. Cheema CPA can help you understand personal tax changes 2016 tax season.  Visit the CRA website for more personal tax changes and updates 2016 tax season.

Universal Child Care Benefits

Universal Child Care Benefits

Universal Child Care Benefits

Universal Child Care Benefits

The Universal Child Care Benefits (UCCB) was introduced back in 2006 as a taxable benefit for Canadian families. This benefit is different from the Canada Child Tax Benefit (CCTB). The UCCB was $100 per month per child under the age of six. The government enhanced this benefit in 2015 by increasing the amount to $160 per child under the age of six. Also the government expanded the benefit to include $60 per month for children aged six through 17.

UCCB payments are taxable. At the end of the year the government issues RC62 slips which outlines the total benefit paid out and has to be included into your income.

Who qualifies for UCCB?

To receive the UCCB benefit you have to meet the following four conditions:

  1. You have to live with the child and the child has to be under the age of 18
  2. You must be the person who is primarily responsible for the child’s care and upbringing
  3. You must be a resident of Canada

When to apply for UCCB benefits?

It is critical to apply for UCCB benefits as soon after one of the following takes place:

  1. your child is born
  2. a child stats to live with you
  3. or you become a resident of Canada

How to calculate UCCB amount for 2015-2016?

  • $160 per month for each child under the age of six
  • $60 per month for each child aged 6 through 17

Explnation of how the UCCB has changed over the last year:

Filing Past Due Tax Returns

Past Tax Returns

Filing Past Due Tax Returns

 Filing Past Due Tax Returns

Filing taxes can be an overwhelming task with numerous things to consider. If you have fallen behind on your returns it is very important to file the past due tax returns and update your records with the Canada Revenue Agency (CRA). By filing taxes you become eligible for government credits such as GST/HST tax credit, Ontario Trillium Tax Credit (OTB), and Child Tax Benefits tax credit.

Failure to file tax returns on time can result in penalties and interest. Even if you are not able to pay the tax balance owing, you should still file your return to reduce the penalties and take advantage of the tax credits you qualify for.

If you are expecting a refund from the CRA it is even more critical to file your tax returns on time because the CRA does not pay interest until 30 days after the due date. Also the CRA can deny your income tax refund if you wait more than three years (CRA discretion to issue the refund if the return is filed within 0 years).

I have zero income should I still file a tax return? 

Even if you are not required to file a tax return, it might be beneficial to file a tax return because you could qualify for government credits. It is very important to file taxes every year even if you have zero income. Eligibility for certain benefits such as the GST/HST credit or the Child Tax Benefits is directly related to your income tax returns.

If I file past due returns, can I still receive the GST/HST tax credit? 

Yes, you will receive the GST/HST tax credit along with other credits you qualify for. You can retroactively qualify for the GST and OTB tax credits.

What is the late filing penalty? 

The late filing penalty is based on taxes owing for a particular year. For an example if you owe tax for 2014 and do not file your return for 2014 on time the CRA will charge you a 5% penalty on the balance owing. In additional the CRA will charge a 1% penalty on the balance owing for each full month your return is late, to a maximum of 12 months.

If the CRA charged a late-filing penalty on your return for 2011, 2012, or 2013 your late-filing penalty for 2014 may be 10% of your 2014 balance owing, plus 2% of your 2014 balance owing for each full month your return is late, to a maximum of 20 months.

Even if you cannot pay your full balance owing on or before April 30, 2015, you can avoid the late-filing penalty by filing your return on time.

Who should I contact if I have to file back taxes for multiple years? 

Contact our firm for all your income tax needs. We specialize in filings back taxes and reducing penalties and interest. We have several different strategies that we use to reduce penalties and interest, including the Voluntary Disclosure Program. We can  help you comply with the CRA reporting obligations and minimize your overall tax bill. Contact our firm and book an appointment with our accountant Mr. Sarb Cheema.

Rental Income Taxed

Rental income tax

How is rental income taxed?

 How is Rental Income Taxed in Canada?

The real estate market in Toronto and the suburbs has been booming over the last several years because of the favorable economic conditions and the low interest rates. Individuals have invested in rental properties of all sorts. Rental income is generated when you rent a property you own. Rental income could be generated from a house, apartment, or a commercial building. The rental property may be acquired in your personal name, in a partnership, in a trust or a corporation. Depending on who owns the property, the tax consequences are very different.

Rental Income Taxed– personal name

If the rental property is owned in your personal name, this income is taxed on your T1 personal income tax return. The tax you pay will depend on your marginal tax rate.

 Rental Income Taxed –  partnership

The partnership’s rental income is  attributed to the partners, who must include their respective share of it in their personal income.

Rental Income Taxed – corporation

If a renal property is held in a corporation there are multiple factors that have to be considered in determining the tax rate. The General Corporate Rate is 38% Federal and 11.50% Provincial (Ontario). Therefore we have a combined General Corporate Rate of  49.50%. However, not all corporations pay this rate because there are tax breaks offered by the federal and provincial governments. The federal government offers a 10% abatement which brings the tax rate down by 10% to 28%. We also have the Small Business Deduction of 17% and the General rate reduction of 13%. To receive preferred tax rates, the corporation has to meet certain conditions.

Brampton Tax Accountants

Tax Accountant

Tax Accountant

Cheema & Assocaite – Your Local Brampton Tax Accountants 

Cheema & Associate CPA Professional Corporation is an accounting firm located in Brampton, Ontario at the main intersection of Kennedy Rd S and Clarence St. Our office address is 143 Clarence st. Suite 5, Brampton ON L6W 1T2.

We provide income tax services to all types of clients from Brampton. We have been serving the Brampton market for over three years. Tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. We can professionally prepare your tax returns while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns. Contact us for your 2014 personal income tax returns.

Our Brampton tax accountants are dedicated in assisting you in all your income tax needs.

Personal Income Tax
Personal tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. Your local Brampton tax accountants can professionally prepare your tax return while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns.

Corporate Tax
Our uniquely designed tax programs can assist you with complying with the complicated provisions of the Income Tax Act (ITA) while minimizing tax liabilities. We can structure your business to maximize profitability and minimize tax risks.Contact us for your 2014 corporate tax returns.

Audit & Appeal
Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process – starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

2014 Ontario Personal Income Tax Rates

Ontario Tax Rates 2014

Ontario Tax Rates 2014

2014 Ontario Personal Income Tax Rates

As with other years the Ontario government has changed some of the tax brackets and rates for 2014. The major changes were:

  • Lowered the taxable income threshold for the 13.16% tax rate from $514,090 to 220,000
  • Added a new tax rate of 12.16% on taxable income between $150,000 to $220,000

Read more