How To: Prepare For Tax Filing 2019

How do I file my taxes?

Good question!

Depending on your situation, there are many online options for you to file your taxes. Some tax software offer free services while others have a flat fee for each product.

These products aim for people who are self-employed, property owners, small business owners, etc.

Listed below are common tax software Canadians utilize during tax season:

Where do I send my return?

There are two options!

  • NETFILE:  This popular option is for people who prepare their return online using specific software like TurboTax and Simple Tax who are "CRA Netfile Certified". This basically means all the information you plug into your return will forward to the CRA. You will most likely see your return within the next 2-4 weeks.

Direct Deposit: If you would like to receive your tax refund electronically, you can set-up your direct deposit on the CRA website.

  • EFILE: This option is for people getting their tax return prepared by a professional tax accountant. Whoever you are working with will send the completed tax return to the CRA on your behalf.

Are there any changes in this tax season?

Yes, there are both additions and eliminations to different tax credits this year.

Additions (+)

  • Service Dog Tax Credit: A taxpayer with a medical diagnosis can receive credit on their service dog costs including veterinary costs, food, and training.
  • Disability Tax Credit: Nurse practitioners are now certified to grant the Disability Tax Credit to Canadians with disabilities.
  • Medical Expenses Tax Credit: Canadians who have fertility-related expenses have the opportunity to claim some of  the costs on their tax return.
  • Canada Caregiver Amount: Tax credits are available to people who care for an infirm family member. The Canada Caregiver Amount is a tax credit which combines The Caregiver Amount, The Family Caregiver Amount + The Amount for Infirm Dependents aged 18+.

Eliminations (-)

  • Lower Tax Rate: Federal small business tax rate applying to businesses with an income up to $500,000 dropped from 10.5% to 10% in 2018. As of January 1, 2019 – it has lowered to 9%.
  • Tuition Tax Break (for some provinces!): Unfortunately for students in Saskatchewan, Ontario and New Brunswick – they are no longer able to claim a provincial tax credit for their tuition expenses. However, tuition is still eligible for federal tax credits in all three provinces.
  • Working Income Tax Benefit: This tax benefit will be re-branded as the Canada Workers Benefit. The Canadian government states that there will be a 26% top-up of their earned income over $3,000 instead of 25%.

What are the deadlines?

CRA began accepting NETFILE returns on Monday, February 18.

  • If you owe money to the CRA, you have until April 30 to file and pay your income tax return for 2018 without being penalized.
  • Are you self-employed? You have until June 17 to file. If you still have outstanding payments, interest will begin to build on your accounts on April 30.
  • If you would like to get a tax refund for your RRSP contribution with your 2018 return, the cutoff for adding funds is March 1.

We suggest if you have any tax related questions you contact an accountant for clarification. Just as we recommend that you contact us for any mortgage related questions.

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