Filing Canada Income Tax Return Online – An Easy Guide
If you wish to file your Canada tax return to the Canada Revenue Agency (CRA) before the deadline, you should know how to do it accurately.
It is the middle of February, when the Canada Revenue Agency begins the process of Canadian income tax return. You should file your taxes early so that your return may get processed early. You have to wait for at least four weeks to check the status of your refund. You will not be able to know about the status of your tax refund until the middle of the March.
It is really difficult to learn about the processing time taken by the CRA for your return because it depends on the way you file your taxes and the time when you submit your return file. If you file your return before the 15th April and you choose paper filing then you will get your return processed within four weeks. If choose TELEFILE, EFILE or NETFILE for your return, then your file will be processed within two weeks.
And, if you file your income tax return after 15th April using paper filing method, then you will have your return being processed within six months. For TELEFILE, EFILE or NETFILE return will take two weeks to get your file processed.
There are certain things you should remember while filing your Canadian taxes online. You should pay the exact amount of tax you owe. You can also benefit from certain things like HST/GST Credit or the Guaranteed Income Supplement under the Old Age Security Program.
You should not miss the deadline for paying taxes set by the CRA. The deadline for filing tax return is 30th April. Generally, Canadian individual returns for any specific year must be filed by April 30 of the subsequent year. If you file your income tax return after the deadline, then the Canada Revenue Agency will charge you a penalty and interest on your unpaid amount.
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Income Tax FAQ:
Question: Income tax BC on earnings less than 30,000 CAD?
I am thinking of starting a business, with myself as the sole proprietor. I do not need a business license as I will be running the business entirely under my first and last name. Will my earnings, that will come to less than 30,000 CAD per year, be subject to income tax? Or will these earnings under Canada BC laws be tax free?
Answer: The $30,000 threshold applies only to whether or not you are required to collect GST/HST on your sales. At that level of income, you will be subject to income tax, both at the federal and provincial level, and you will also be required to pay into the Canada Pension Plan. So, breaking it down:
CPP starts when your income is over 3,500 dollars at a rate of 9.9%. You would be exempt from this only if you are under 18, or over 70, or if you are currently collecting CPP retirement or disability benefits.
Federal Income tax starts when your income reaches 10,385, at a rate of 15%.
Provincial tax starts at 11,000, at a rate of 5.06%.
Keep in mind that this is based on your profit, not the revenue. You would be taxed on the profit realized after expenses. In addition, neither the federal or provincial governments have tabled their budgets yet for 2010. All the numbers shown above are subject to change.
Question: Do native Americans in Canada have to prepare an income tax return even if they live and work in the reserve?
Answer: They don’t call themselves American in Canada. The income tax exemption applies only to income that is earned on the reserve. They would have to include any amounts that were earned off reserve, and also investments, in certain cases. Also, people with native status can still qualify for GST credit cheques and payments for the Child Tax Benefit. For these things, a tax return is required, even all income is exempt from tax.
Question: Can I still claim my tuition on my Canadian Income Tax Return in this case?
I took classes in the US for 2 months (9 weeks to be exact) and these were classes that were NOT going towards any kind of degree. I was also NOT a commuting student. From what I understand I cannot claim the tuition I spent there because of 2 reasons: 1-the courses were not for a degree, 2-I was not a communiting Canadian, meaning I was not living in Canada while commuting to the US everyday for class. Is this right?
Answer: You are correct. You would either have to be a commuter, or be enrolled full time for at least 13 weeks. In your situation, you cannot claim the tuition and educations amounts
Question: US-Canada Tax Treaty?
I got a small amount of pay in January for my work in US. I immigrated to Canada in January. What is the best way for me to file my returns? Can I file as a resident in both countries and thereby not declare one’s income in the other country? Or am I required to declare US income in Canada (and vice versa)?
Answer: The CRA pamphlet “Newcomers” tells you exactly what to declare in the year of your landing. You should take a look at it on their website.
You only report to Canada income for the period AFTER you landed. As a US Citizen, you declare worldwide income and file taxes in the US regardless of your residence. You can take a Foreign tax credit on the US taxes for taxes paid to Canada.
Question: Have qualified for disability tax credit from the past 10 years?
How does the CRA calculate this for the reassessment of my income tax for those years? Does the amount of income tax paid those years have a grand affect? From Ontario Canada and years 1999-2009.
Answer: The disability tax credit has nothing to do with the amount of tax you paid. The federal part is the same no matter where in Canada you live, the provincial part may be different, for Ontario in 1999 the federal and provincial amount was worth about $1,200.00 more of a refund, each year it went up a little bit. For the 10 years you are looking at a refund of about $12,000.00 plus interest.
Question: Someone stole my friends Canada income tax refund. Will she ever get the money?
It was stolen and cashed by someone. They sent her a copy of the signature, and she doesn’t recognize it. Also the cheque contains other numbers like driver’s license and SIN number, but they are not hers. The cheque was cashed in a city she’s never been in. Will the government eventually give her the money, how long will it take?
Answer: The CRA has a procedure for replacing payments, even if the original cheque has already been cashed. Step one is that they will normally have her sign an Undertaking and Indemnity. It’s a standard form that they send, probably already filled in with some of the vital information like the amount of the cheque and the cheque number. That gets sent back to them and they investigate.
If they find that the cheque has already been cashed, a photocopy of the cheque is sent along with an affidavit. This one has to be sworn before a Commissioner of Oaths that they did not get any advantage from the refund.
I had to go through this when one of my EI cheques went astray years ago, and I did eventually get my money, but it took a while, nearly two months from start to finish.
Question: How much is income tax in toronto canada?
I am married and have 2 kids. My wife is a housewife. I wanted to know how much tax I will pay on 110K base salary. Are there any standard deductions? How much will be the take home?
Answer: You need to look at the Canada Revenue website and look under the Ontario Province tax breakdown. Off the cuff though I believe it’s 30% but in Ontario there is a host of things you can claim as expenses especially with children so it’s worth while to investigate all of them! Your financial advisor or accountant may be able to help you with deductions you qualify for.
Question: How are U.S. Income tax-deductable charity contributions treated in the Canadian Income Tax system?
I’m making monthly contributions to a charity organization in the U.S. and the gifts are tax-deductable for U.S.-Income. Are they also tax-deductable in Canada? How will they be treated?
Answer: According to CRA, generally if you have U.S. income you can claim any gifts to U.S. charities that would be allowed on a U.S. return. You can claim the eligible amount of your U.S.. gifts up to 75% of the net U.S. income you report on your Canadian return. However, you may be able to claim the eligible amount of your gifts to certain U.S. organizations up to 75% of your net world income. You can do this if you live near the border in Canada throughout the year and commute to your principal workplace or business in the United States, and if that employment or business was your main source of income for the year.