If you are truly serious about preparing your child for the future, don't teach him to subtract - teach him to deduct.
~Fran Lebowitz~
JRPC provides high-level income tax preparation services. Our complete client satisfaction package includes assessing your individual situation to identify tax savings and potential tax deferrals. We take great care in recognizing areas which can be utilized to minimize taxes and maximize refunds.
 
Taxpayers are typically not fully aware of the deductions available to them and the benefits of tax planning via income splitting and other means. Our expertise in these areas and personal attention given to each individual sets us apart from tax preparers who process returns based solely on slips and information provided by the client. We identify the deductions and credits available to individuals and ensure that each opportunity is utilized most efficiently.
 
The benefits of utilizing a firm such as ours most certainly outweighs the costs. Our clients truly appreciate our personalized attention and prompt turnaround. 

INCOME

The types of income that you need to report are:
Line 101 - Employment income
Line 104 - Other employment income
Line 113 - Old Age Security pension (OAS)
Line 114 - CPP or QPP benefits
Line 115 - Other pensions or superannuation
Line 116 - Elected split-pension amount
Line 117 - Universal Child Care Benefit (UCCB)
Line 119 - Employment Insurance and other benefits
Line 120 - Taxable amount of dividends from taxable Canadian corporations
Line 121 - Interest and other investment income
Line 122 - Net partnership income: limited or non-active partners only
Line 125 - Registered disability savings plan (RDSP) income
Line 126 - Rental income
Line 127 - Taxable capital gains
Line 128 - Support payments received
Line 129 - RRSP income
Line 130 - Other income
Lines 135 to 143 - Self-employment income
Line 144 - Workers' compensation benefits
Line 145 - Social assistance payments
Line 146 - Net federal supplements
 
You do not have to include certain amounts in your income, including the following: 
  • any GST/HST credit or Canada Child Tax Benefit payments, as well as those from related provincial or territorial programs;
  • child assistance payments and the supplement for handicapped children paid by the province of Quebec;
  • compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
  • lottery winnings;
  • most gifts and inheritances;
  • amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
  • most amounts received from a life insurance policy following someone's death;
  • most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership;
  • capital dividends (dividends paid from specific non-taxable income amounts tracked in the company's capital dividend account)

DEDUCTIONS 

The following deductions are available to most tax payers:

Line 206 - Pension adjustment
Line 207 - Registered pension plan (RPP) deduction
Line 208 - RRSP deduction
Line 209 - Saskatchewan Pension Plan (SPP) deduction
Line 210 - Deduction for elected split-pension amount
Line 212 - Annual union, professional, or like dues
Line 213 - Universal Child Care Benefit (UCCB) repayment
Line 214 - Child care expenses
Line 215 - Disability supports deduction
Line 217 - Business investment loss
Line 219 - Moving expenses
Line 220 - Support payments made
Line 221 - Carrying charges and interest expenses
Line 222 - Deduction for CPP or QPP contributions on self-employment and other earnings
Line 223 - Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income
Line 224 - Exploration and development expenses
Line 229 - Other employment expenses
Line 231 - Clergy residence deduction
Line 232 - Other deductions
Line 235 - Social benefits repayment
Line 244 - Canadian Forces personnel and police deduction
Line 248 - Employee home relocation loan deduction
Line 249 - Security options deductions
Line 250 - Other payments deduction
Line 251 - Limited partnership losses of other years
Line 252 - Non-capital losses of other years
Line 253 - Net capital losses of other years
Line 254 - Capital gains deduction
Line 255 - Northern residents deductions
Line 256 - Additional deductions

FEDERAL NON-REFUNDABLE TAX CREDITS

These credits reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference.
 
Line 300 - Basic personal amount
Line 301 - Age amount
Line 303 - Spouse or common-law partner amount
Line 305 - Amount for an eligible dependant
Line 367 - Amount for children born in 1992 or later
Line 306 - Amount for infirm dependants age 18 or older
Line 308 - CPP or QPP contributions through employment
Line 310 - CPP or QPP contributions on self-employment and other earnings
Line 312 - Employment insurance premiums
Line 375 - Provincial Parental insurance plan (PPIP) premiums paid
Line 376 - PPIP premiums payable on employment income
Line 378 - PPIP premiums payable on self-employment income
Line 363 - Canada employment amount
Line 364 - Public transit amount
Line 365 - Children's fitness amount
Line 368 - Home renovation expenses
Line 369 - Home buyers' amount
Line 313 - Adoption expenses
Line 314 - Pension income amount
Line 315 - Caregiver amount
Line 316 - Disability amount
Line 318 - Disability amount transferred from a dependant
Line 319 - Interest paid on your student loans
Line 323 - Tuition, education, and textbook amounts
Line 324 - Tuition, education, and textbook amounts transferred from a child
Line 326 - Amounts transferred from your spouse or common-law partner
Line 330 - Medical expenses for self, spouse or common-law partner, and your dependent children born in 1992 or later
Line 331 - Allowable amount of medical expenses for other dependants
Line 349 - Donations and gifts

TAX DEADLINES

What date is your return due?
 
Generally, your return for the current year has to be filed on or before April 30 of the next year.
 
If you file your return after April 30th of the following year, your GST/HST credit (including any related provincial credit), Canada Child Tax Benefit payments (including those from certain related provincial or territorial programs), and Old Age Security benefit payments may be delayed.
 
Self-employed Persons
 
If you or your spouse or common-law partner carried on a business in the tax year, your return for the tax year has to be filed on or before June 15th of the following year. However, if you have a balance owing for the tax year, you still have to pay it on or before April 30th of the following year.
 
Deceased Persons
 
If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in the tax year, you may have to file a return for that individual in the tax year itself.
 
Exception to Due Date of Your Return
 
When a due date falls on a Saturday, a Sunday, or a holiday recognized by the Canada Revenue Agency, they consider your return to be filed on time or your payment to be made on time if they receive it or it is postmarked on the next business day.

INTEREST & PENALTIES

Penalties
 
If you owe tax for the tax year and do not file your return for it within the deadline dates, Canada Revenue Agency will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if you are charged a late-filing penalty on a return for any of the three previous years.
Canada Revenue Agency may waive or cancel this penalty as well as any interest that may apply if you file your return late because of circumstances beyond your control.
 
Interest
 
If you have a balance owing for the tax year, Canada Revenue Agency will charge compound daily interest starting May 1st of the following year, on any unpaid amounts owing for the tax year. This includes any balance owing if your return is reassessed.
 
In addition, Canada Revenue Agency will charge you interest on any penalties, starting the day after your return is due.
 
When will Canada Revenue Agency pay interest?
 
CRA will pay you compound daily interest on your tax refund for the tax year. The calculation will start on whichever of the following three dates is latest:
  1. May 31st of the following year;
  2. the 31st day after you file your return; or
  3. the day after you overpaid your taxes