What Items Do You Need To File Taxes

Watch For Your Income Documents To Arrive

You should receive forms about how much income youve earned from your employers and other income sources in January or February. If you are a full-time employee, you will receive a Form W-2 detailing your earnings, as well as which taxes were withheld. If you work freelance or on a contract, you may receive a Form 1099-NEC detailing what you earned. You may also receive documents showing dividends or interest earned on investments , or student loan interest youve paid . If youre a college student , youll receive a Form 1098-T that shows how much you paid in tuition, as well as any amounts you received from grants or fellowships, to help you figure out deductions and credits related to education expenses.

Gather All Necessary Documentation

Documentation is critical when filing your taxes. Youll need proof for all the things youre claiming, including proof of your income, deductions, etc. Keep photocopies of tax returns for the past three years.

Make sure to gather proof of donations, alimony payments, and anything else you are claiming as a deduction or exemption. Accounting documents, bills, receipts, and statements of the last year will also be required.

Bonuses Retroactive Pay Increases Or Irregular Amounts

If you paid bonuses, retroactive pay increases or any other additional or unusual amounts to your employees, you have to deduct all of the following amounts:

• CPP contributions
• EI premiums
• income tax

Note

CPP contributions

If you have already deducted the yearly maximum CPP contributions from an employees income, do not deduct more contributions.

Do not take into account any contributions that a previous employer deducted in the same year.

Example

Joseph receives a retroactive pay increase of $450 on June 29. His payroll record for the year indicates that, to date, you have deducted $300 in CPP contributions.

Maximum CPP contribution for the year

Contributions to date for the year

Maximum that you can deduct for Joseph for the rest of the year

Multiply the retroactive pay increase of $450 × the CPP rate of 5.25%

$2898.00

$2598.00

$23.63

You should deduct CPP contributions of $23.63 from Josephs retroactive pay increase up to the maximum for the year.

Note

The Payroll Deductions Online Calculator calculates the CPP contributions, EI premiums, and income tax on bonuses and retroactive pay increases. You can use the PDOC by going to the Payroll Deductions Online Calculator.

EI premiums

You have to deduct EI premiums from bonuses and retroactive pay increases. Do not deduct more than the maximum for the year.

Do not take into account any premiums that a previous employer deducted in the same year.

Income tax

Calculate as follows:

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Chapter 5 Deducting Income Tax

As an employer or payer, you are responsible for deducting income tax from the remuneration or other income you pay. There is no age limit for deducting income tax and there is no employer contribution required.

We have forms to help you determine how much income tax to deduct:

• Fishers fill out Form TD3F, Fishers Election to Have Tax Deducted at Source.

Use A Tax Professional

For anyone with a complicated financial situation or a lack of confidence about finances, a tax professional is a better option. Capable tax professionals can help minimize the amount you owe and maximize the deductions you claim. Using a tax professional can pay for itself.

Tax Software Vs a CPA: Which Is Right For You?

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You Are An Independent Contractor

Being an independent contractor means you are self-employed. You determine what to make, how to make it, where to make it and how to sell it. Independent contractors are fully responsible for taking care of their own taxes.

Although you may receive payments from the site you sign up with, that site is not your employer and will not withhold taxes out of your earnings.

Do You Need To Register For A Payroll Program Account

You need to register for a payroll program account if you meet any of the following conditions:

• pay salaries or wages
• pay bonuses or vacation pay
• provide benefits or allowances to employees
• need to report, deduct and remit amounts from other types of remuneration

If you need a payroll program account and you already have a business number , you only need to add a payroll program account to your existing BN. If you dont have a BN, you must ask for one and register for a payroll program account before the date your first remittance is due.

For more information on the BN and CRA accounts, or to register online, go to Business number registration.

Payroll deductions can be complicated. If you are having trouble with them, go to Payroll or call 1-800-959-5525.

Contacts and authorized representatives

As a business owner, partner, director, trustee, or officer of a business, you can authorize representatives, including your employees, an accountant, a bookkeeper, a lawyer, a payroll provider, or a firm, to act on your behalf.

You can authorize a representative by submitting an authorization request online through Represent a Client.

Representatives can access most of the services offered in My Business Account through Represent a Client.

Employment in Quebec

If the employee has to report to your place of business in Quebec or you pay the employee from your place of business in Quebec, different regulations and employer responsibilities apply.

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Documents You May Need To File Your Taxes

What I Need to File Taxes Online

When approaching a complex task like filing your taxes, it’s best to get organized by creating a comprehensive checklist in advance. There are many forms and documents required when filing your taxes and it’s best not to wait until the 11th hour to start locating them. While opting to e-file your taxes can take a lot of guesswork out of the tax filing process, we recommend creating a personal tax checklist regardless of your preferred method of filing. From required personal information to tax forms and documents, here’s what you’ll need before you start to file.

Personal Information Required to File Taxes Online

• Business expenses, child care expenses, gambling losses, medical expenses, moving expenses, Personal property tax, such as car registration paid, real estate tax bills.

What Information Do I Need For The Deceaseds Tax Return

• You have to know the deceaseds income from all sources, from January 1st of the year of death up to and including the date of death.
• You will probably have to look at previous returns and may have to contact employers, banks, trust companies, stockbrokers, and pension plan managers.
• You will gather information slips and any other documentation that you need to indicate or estimate income and deductions.

The final return cannot be submitted through NETFILE.

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When Are The Returns And The Taxes Owed Due

Each type of the deceased return has a due date:

The Final Return:

• If the death occurred between January 1st and October 31st, you have until April 30th of the following year.
• If it was between November 1st and December 31st, it is due six months after the date of death.

The Optional Returns:

• The Return for Rights or Things is due by the later of one year from the date of death or 90 days after the mailing date of the Notice Of Assessment for the final return.
• The other optional Returns such as Return for a Partner or Proprietor and the Return of Income from a Graduated Rate Estate are due on the same date as the final return.

The T3 Trust Return:

The T3 Trust return is due 90 days from the end of the trusts tax year. The T3 tax year starts the day after the death date and the end date can be any date up to one year from the date of death. This means that the due date of the T3 return could be before the final return.

Tax Return Software And Online Applications

If you find the ELSTER tool too complicated, there are a range of desktop and online tools available to help you complete your tax return in Germany correctly. They also provide tips and support for maximising your refund.

As the first and most comprehensive online tax return software in English, SteuerGo.de is ideal for employees and freelancers, especially if itâs your first time.

• You are guided step-by-step through a clearly structured interface.
• When you register for your free account, any entries you make are automatically saved.
• It is all in English â every step of the process. A wealth of explanatory texts help you to understand what is needed and key German terms are given in brackets to help you navigate your way through German tax documents.
• You can contact us via email, chat or call our hotline if you have any questions.
• It only costs 29,95 Euro and you only need to pay if you decide to actually submit a tax return using the software.

Our software also tells you in real time how much you can expect to get back as a refund, so you know if itâs worth the one-time fee.

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Should I File A Return Anyway

Even if youre not required to file, sometimes its in your own best interest to do so anyways, for the following reasons

• You want to claim a refund.
• Entries on your tax return determine if youre eligible for certain federal and provincial benefit programs. Even if you had no income, you still may qualify for the GST/HST Credit, or provincial benefits such as the Ontario Trillium Benefit. You can find a complete list of provincial benefit programshere.
• Your RRSP contribution limit starts growing as soon as you earn any income. Even if youre not expecting a refund, the more RRSP contribution room, the better.
• If you want to claim the Canada Workers Benefit or if you want to continue receiving your Canada Child Benefit
• If you attended school and have eligible tuition fees, you must declare the amounts on your tax return, even if you are not using them. You might not need to use the credits this year, but in order to carryforward or transfer them, they must be reported on your current year tax return.
• If you or your spouse want to continue to receive Guaranteed Income Supplement on your Old Age Security payments.

With more than 20 years experience helping Canadians file their taxes confidently and get all the money they deserve, TurboTax products, including TurboTax Free, are available at www.turbotax.ca.

Employing A Caregiver Baby

If you hire a caregiver, baby-sitter, or domestic worker, you may be considered to be the employer of that person. As an employer, you have responsibilities in the employment relationship between you and the person.

When are you considered to be an employer?

You are considered to be an employer when all of the following apply to you:

• hire a person
• establish regular working hours
• assign and supervise the tasks performed

If you or a person working for you is not sure of the workers employment status, either one of you can request a ruling to determine the status. If you are a business owner, you can use the Request a CPP/EI ruling service in My Business Account. For more information, go to My Business Account.

A worker can ask for a ruling by using the My Account service, at My Account for Individuals and selecting Submit documents and then You may be able to submit documents without a case or reference number.

For more information, see Guide RC4110, Employee or Self-Employed?

To find out what your responsibilities are as an employer, see What are your responsibilities?

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What Are The Common Filing Mistakes To Avoid

Common filing mistakes include not filing an Income Tax Return when you have received a notification from IRAS to file, and using previous years’ relief claims for the current Year of Assessment even though your circumstances had changed. Find out moreon the common filing mistakes to avoid.

For self-employed persons, sole-proprietors and partners, you may find out more about common filing mistakes specific to your trade, business, vocation or profession.

If you have successfully filed, you will see an acknowledgement page on the screen after you click ‘Submit’. If you do not see an acknowledgement page, please check your filing status at myTax Portal .

Documents Needed For Your Tax Return

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Save The Right Paperwork All Year Long

Stay on top of tax-related paperwork throughout the year it will make your life easier during tax season. You might want to keep receipts for things like charitable donations, work-related expenses and medical bills, or other items from step 4. You may also want to keep statements from student loans or investments and any grants or fellowships. Having these handy and organized can help you determine whether to itemize and make the process easier. You should keep your paperwork after you file, too. The IRS recommends keeping records for at least three years.

Are You An Employer

Employers have responsibilities they must fulfill. For more information about these responsibilities, see What are your responsibilities? Employers who do not comply with the payroll requirements may have to pay a penalty for the deductions not withheld and face other consequences. For more information, go to Penalties, interest and other consequences.

Employment status directly affects a workers entitlement to EI benefits under the Employment Insurance Act. It can also affect how a worker is treated under other legislation such as the Canada Pension Plan and the Income Tax Act. Because of this, it is important that you know whether a worker is an employee or a self-employed individual.

The facts of the working relationship as a whole decide the employment status. However, we generally consider you to be an employer if one of the following items applies to you:

• you pay salaries, wages , bonuses, vacation pay, or tips to your employees
• you provide certain taxable benefits, such as an automobile or allowances to your employees

Although a written contract might indicate that an individual is self-employed , we cannot consider the individual as self-employed if there is evidence of an employer-employee relationship. This relationship is referred to in this guide as employment under a contract of service.

Note

You may not have to deduct EI premiums if you hire family members or non-related employees. For more information, see Chapter 3.

To ask for a CPP/EI ruling you can

Note

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What Sort Of Identification Number And Personal Info Do I Need To File My Taxes Online

Before you even start, everyone on your return has to have a taxpayer ID number. That can be a Social Security Number , an Individual Taxpayer Identification Number or an Adoption Taxpayer Identification Number . Youll also need the correct date of birth for each person on your return, along with full names.

When you add each person to your return, the name, birth date, and ID number must match what the IRS has on file. The IRS uses whats on the Social Security card or other taxpayer ID. If the name, ID number, and date of birth dont match, the IRS will reject your return and ask you to correct the information.

Filing Your Tax Return

What you need to know about filing your personal income tax and benefit return.

Get help this tax season with the Ontario Child Care Tax Credit and the Low-Income Workers Tax Credit.

Save your receipts for the new Seniors’ Home Safety Tax Credit in 2021, which you can apply for during the 2022 tax season.

You may be eligible for tax credits and benefits to help you with living costs.

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Decide Which Deductions Suit You Best

There are plenty of deductions you can take when filing your income tax return. Some of these you cant afford to miss, particularly if you own a small business.

The most common deductions are for dependents and homeownership.

However, there are also many other options for write-offs that you might want to explore before filing your returns. These include medical expenses, insurance premiums, IRA contributions, charitable donations, and a whole lot more.

Whatever you choose, make sure that deducting them is allowed and that the documents needed to support the deduction are included in your filing.