FAQs

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Frequently Asked Questions

Q?

What do you need to do before filing your taxes?

A.

You’ll need to gather a number of documents; that can include the following:

  • If you’re an employee, a T4, Statement of Remuneration Paid form, which shows how much your employer paid you.
  • If you’re retired, a T4A - Statement of Pension, Retirement, Annuity and Other Income, which shows you much you earned in retirement payments.
  • If you made money from investing, you’ll need a T5 - Statement of Investment Income, which shows items such as dividends, interest from bonds or money you loaned, and much more.
  • If you received Employment Insurance (EI), a T4E - Statement of Employment Insurance and Other Benefits.
  • If you received Worker’s Compensation or Social Assistance, a T5007 - Statement of Benefits.

Additionally:

  • Receipts: You’ll need these to claim expenses such as public transit, child care, and moving and medical expenses.
  • All your receipts for your RRSP contributions: In addition to a Notice of Assessment, you’ll need to have all your RRSP receipts – and there are often more than one. The first receipt will likely cover your contributions from March to December, the other for January and February. Have them both so you can add them up and have proof of how much you contributed in total.
  • Other documentation: You’ll need to bring a Notice of Assessment to determine how much you can contribute to your RRSPs.

Q?

What is the deadline for filing my taxes?

A.

April 30 — if you have a balance owing.

June 15 — If you or your spouse or common-law partner ran a Sole Proprietorship business within the year. But you still have to pay your taxes by April 30th if you owe money to the government.

Q?

When do you need to file taxes?

A.

→ You have to pay income taxes for the year;

→ You have not repaid all amounts withdrawn from your RRSP under the Life Long Learning Plan;

→ You have to pay CPP because your pensionable income exceeds $3,500; or,

→ You received the working income tax benefit or you applied for advance payments.

Other reasons to file a tax return:

→ To claim a refund;

→ To apply for the GST/HST or provincial credits;

→ To carry forward or transfer the unused part of your tuition, education and textbook amounts;

→ To keep your RRSP deduction limit up to date; or,

→ To begin or continue receiving Canada Child Benefit payments.

Q?

What can happen if I don’t pay my taxes?

A.

Canada Revenue Agency has the ability freeze your bank account, garnish your wages, garnish your receivables, if you are a company, and can even put a lien on your property. They can also pursue legal action against you.

Q?

What should I do if I haven’t paid my taxes for several years and the government is threatening to take action?

A.

You will need to contact a Collections Officer at Canada Revenue Agency right away to make payment arrangements for your taxes owing. You also need to contact a qualified tax accountant to help you prepare the tax returns for the years that are owing to make sure you are only paying the necessary amount. Canada Revenue Agency bases your debt on what they assume you have earned during the years you have not paid. They do not take applicable tax deductions and credits against your earnings to decrease the amount owing.

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