Whether you are having your own practice and helping your clients with tax filing or you are doing your own taxes, come tax time you can become extremely busy.
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- How do you ensure you have covered for your clients all the deductions and credits they could be eligible for
- How do we confirm your clients have forgotten to give all the income slips and reported all the income
- How do we ensure your clients are not missing to take the most benefits for their dependents
- How do you ensure you have covered for your clients all the deductions and credits they could be eligible for
A checklist is what can be helpful to both you and your clients, so that you do not miss out anything during tax filing.
This checklist is divided in 8 parts for a taxpayer:
1. Employment Income Slips
- Employment income – T4
- Commission, other employment income – T4A
- Employment insurance & other benefits – T4E
One Copy of these slips are given to Employee, one copy send to CRA, one is kept on record by Employer. Follow the boxes on the slip and carefully complete them in the software. At FinTech College you will learn hands-on exercises how to do personal income tax filing.
2. Investment Income Slips
- Mutual fund and trust income – T3
- Interest, dividend and other income – T5
- Partnership income – T5013
- Securities transactions statements – T5008
- Other / foreign income, i.e. U.S. income slips
- Any capital property, like stocks, the taxpayer sold at a profit (or loss)
3. Other Income Slips
- Rental income and expenses
- Self-employment income and expense
4. Seniors Tax Filing – Retirement Income Slips
- Pensions and annuities – T4A
- Old Age Security pension – T4A(OAS)
- Canada Pension Plan benefits – T4A(P)
- Registered Retirement Income Fund – T4RIF
- Foreign pension income – Report on Line 11500
- RRSP withdrawals – T4RSP
- RRSP contribution slips – Provide RRSP slip
- Split pension income with your spouse – from 0% to 50% of eligible pension income
5. Deductions
100% of your RRSP is tax deductible. Contributions made to your RRSP reduce your taxable income dollar-for-dollar. RRSPs are a great way to save for retirement. This tax-advantaged account lets you save with pre-tax money and reduce your overall tax burden.
If an employer reimburses an employee for moving expenses re a transfer to a new work location, certain of these expense reimbursements will not be considered a taxable benefit to the employee, while some reimbursements will be considered a taxable benefit.
Daycare, summer camp, nurseries and nanny services are all deductible expenses for parents, but the tax deduction must be claimed by the parent in the lower tax bracket.
Claim the total of the following amounts that you paid in the year related to your employment: annual dues for membership in a trade union or an association of public servants.
6. Credits
Medical expenses can be claimed if they were paid within any 12 month period ending in the current tax year, and not claimed in the prior tax year. This is the only criteria for the time period for the expenses
You can claim part or all of the eligible amount of your gifts, up to the limit of 75% of your net income for the year. You do not have to claim, on your income tax and benefit return for the current year, the eligible amount of gifts you made in the year. It may be more beneficial for you to carry them forward and claim them on your return for any of the next 5 years.
- Tuition – provide T2202 (signed if parent is claiming)
Fees paid by an individual to a post-secondary educational institution in Canada (that provides courses at a post-secondary level) or, fees paid by a deemed resident of Canada, to a post-secondary educational institution outside Canada (that provides courses at a post-secondary level), for courses that are not at the post-secondary school level are eligible for the tuition tax credit if the following conditions are met:
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the individual is 16 years of age or older before the end of the year
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the individual is enrolled in the educational institution to obtain skills for, or improve their skills in, an occupation
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If you do not need to claim the student loan interest because your taxes are already zero, save it to claim in a future year. Unused interest amounts can be carried forward for 5 years.
The digital news subscription tax credit is a non-refundable tax credit for amounts paid by individuals to a qualified Canadian journalism organization (QCJO) for qualifying subscription expenses after 2019 and before 2025.
- Disability – provide T2201 certificate
The DTC is a non-refundable tax credit that helps people with disabilities or requiring a life-sustaining therapy, or caregivers reduce their income taxes. All Canadians with type 1 diabetes will qualify for the Federal Disability Tax Credit.
- Property tax and/or rent paid – provide receipts
Complete Form ON-BEN, Application for Ontario Trillium Benefit and Ontario Senior Homeowners’ Property Tax Grant. Eligible rent paid is the rent that was paid for year by or for you, for your principal residence, which was subject to Ontario municipal or education property tax.
Box 61120, you should enter your total property tax paid for your principal residence.
A qualifying home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system and must be located in Canada. It includes existing homes and homes under construction.
- Public transit passes (65 years of age or older)
It is a Ontario Provincial Tax Credit. To qualify to claim the credit, a taxpayer:
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must be at least 65 years old on the last day of the preceding taxation year (i.e., age 66+ in the taxation year of the costs), and
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must be resident in Ontario on the last day of the year.
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Our Income Tax training courses are perfectly crafted to acquire solid foundational knowledge. The courses are fully hands-on with live instructor led training and they come with our proprietary designed study material.
7. Attach this information to the checklist for each taxpayer
- Did you sell your principal residence? Yes / No
- Provide information to Elections Canada? Yes / No
- Were you born in the USA, or are you a US citizen / Green Card holder? Yes / No
- Did you own foreign stocks or property with a cost greater than $100,000 at any time during the year? Yes / No
- Authorize CRA to share your name and email for maintenance of the Organ and Tissue Donor Registry? Yes / No
8. General Information about the taxpayer
Prior years’ tax-filing positions and documentation received from the Canada Revenue Agency (CRA) contain important information to help you accurately file this year’s tax return:
- Previous year’s tax returns
- Previous year’s Notice of Assessment
- Tax installment payments
- Any reassessments or other correspondence received from CRA
Conclusion
Hand-On, income tax courses with certificates from Fintech College offer a valuable pathway to enhance your career. With flexible learning options, comprehensive curriculum, and recognized certification, you can gain the skills and credentials needed to succeed in the competitive field of taxation. Start your journey today with Fintech College and unlock your potential.
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