Failure to File Taxes Could Bankrupt You

Failure to File Taxes Could Bankrupt YouIt’s better late than never when it comes to your taxes. If you haven’t done your taxes for a year or two — or more — “get on it before CRA gets on you,” says tax expert Evelyn Jacks. The author of books such as Jacks on Tax and Essential Tax Facts says you may face big penalties and interest charges for procrastinating. “If you voluntarily comply — that is,…

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Making Income Tax Returns Simpler is No Simple Task

Making Income Tax Returns Simpler is No Simple TaskAlthough many people say Canada’s income tax system is overly complex — a realization often reached as they struggle to compile T4s and calculate federal and provincial credits — coming up with ways to reform it isn’t exactly a cakewalk either. The system has grown over the decades to include a host of provisions, tax avoidance language and credits that provide tax relief for particular groups of Canadians, ranging from…

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5 Benefits of a Flat-Tax System

5 Benefits of a Flat-Tax SystemA common refrain during tax season is that the whole system of credits and sliding rate scales is just too complex. One of the ideas that has cropped up in recent years is to replace the system with a simple flat tax, but it turns out to be a whole lot more complicated and controversial than it might seem at first glance. On the plus side, imagine filling out a…

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Confusion Reigns Over TFSA Rules

Confusion Reigns Over TFSA RulesContribution rules for a popular tax shelter continue to perplex ordinary Canadians, despite a year-long information blitz by the Canada Revenue Agency and the big banks. The agency sent out almost 103,000 letters to holders of tax-free savings accounts this month warning they likely over-contributed in 2010 — and now must pay additional tax. That number is up sharply from the 72,000 letters issued on June 1 last year for…

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The Basics And Benefits Of Registered Retirement Savings Plans

The Basics And Benefits Of Registered Retirement Savings PlansWhat if there was a way that you could get the Canadian government to pay almost half of the money you needed to make an investment (be it for the purchase of stocks, mutual funds, guaranteed investment certificates, mortgages etc.). Then, when you’ve made money on that investment, through interest earned or capital gains, the government tells you that you don’t have to pay tax on it. Keep the profits,…

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Adopted recently? This tax tips for you.

Adopted recently? This tax tips for you.If you’ve recently adopted, or know anyone who has, this Canadian tax advice is for you, courtesy of Intuit (think: QuickTax) Here was the original reader-submitted question: Q – Is there an adoption expenses tax credit? We adopted in 2009 and have paid various expenses to an adoption agency, are any of them tax deductible? Our adoption will be finalized in 2010. And the answer, supplied by Caroline on the…

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Dealing with the Canada Revenue Agency

Dealing with the Canada Revenue AgencyHere are two stories that show how important it is to know how much tax you owe and pay the right amount. If you don’t, the government can hit you with heavy penalties. In the first case, a woman sent a cheque for what she thought she owed. The Canada Revenue Agency didn’t cash her cheque and sent her a big refund in error. Many months later, it demanded repayment,…

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How To Fix Errors On Old Tax Return Plus Claim Your Kids Deduction

How To Fix Errors On Old Tax Return Plus Claim Your Kids DeductionThanks to commenter David on my recent QuickTax software review, I learned that you can claim your kids and I now need to refile my tax returns for the last two years.  It is on the federal TD1 form and is plain as day (now that I look at it). So much for saving money by doing my taxes myself!  Mr. Cheap has asked me a few times if I’ve…

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RRSP Spectacular!

RRSP Spectacular!The deadline is looming and Canadians still ponder about whether they should put more money into their RRSPs? When is the Deadline? According the to TD Waterhouse web site the deadline is Midnight on March 1st (so you get an extra banking day) for contributions to count on last year’s income tax. So you still have plenty of time to ponder this. A useful tool for this exercise is Quicktax’s…

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What Can I Deduct to Pay Less Tax? File Your Income Tax with QuickTax Review

What Can I Deduct to Pay Less Tax? File Your Income Tax with QuickTax ReviewNow that we have almost completed the RRSP season for the 2009 income tax year, it is now time to think about one of the most painful financial activities: file taxes! I’ve recently been contacted by Intuit (the famous producer of Quicken) to review their latest QuickTax 2009 income tax software. So they sent me a QuickTax 2009 standard edition so I can work with it for a while and…

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