When to expect your tax refunds?

 You will receive a refund whenever the Canada Revenue Agency collects more income tax than you. It is like savings you had and didn't know about. A refund is assessed based on the total income, the taxes you paid, and whether you are eligible for deductions and credits to warrant a refund.

When can you get your tax refund?

The revenue agency of Canada aims to send the refund within a few weeks. You can get a refund in 2 weeks when you file online. When you file a paper return, you can expect the return in 8 weeks.

As per experts working at income tax Toronto, the timelines are valid only for the returns received before the due date. If you live outside Canada, the returns might take up to 16 weeks. The CRA might take a little longer if your return is selected for a detailed review.

Can the Canada Revenue Agency withhold a tax refund?

In simple terms, there can be several reasons for the Canada Revenue Agency withholding the tax refund. Professionals at cloud service Toronto claim that the cause can also include an outstanding balance on the amount owing. The revenue agency can withhold a tax refund if you have failed to file for specific tax years. Lastly, if your details are incorrect, the Canada Revenue Agency also has the right to withhold your tax refund.

You need to know that even a tiny detail like an incorrect apartment number leads to delays in your tax refund.

Finally….

You can calculate your tax refund amount by calculating the total annual income and adding all the employment and investment earnings. Then apply all the deductions that you are eligible for. Lastly, you can subtract the full credits from the total payable amount.

Benefits Of Cloud Bookkeeping In 2022

 Cloud-based software solutions helped several industries over the last few years realize their true productivity. The same applies to the accounting sector, too. Cloud accounting and bookkeeping have become the primary mode of accounting. 

Even income tax consultants now rely on cloud systems to upgrade their accounting processes. But, in what ways do they do that? In this blog, we answer that question by listing a few benefits of cloud bookkeeping in 2022. 

1. It improves the speed

The most obvious benefit is that it increases the speed of accounting. Traditional accounting entailed long hours of manual data entry. However, with automation tools forming an integral part of the cloud systems, the accounting process becomes easier and faster. 

2. It offers better security

Conventional accounting offers little to no data security. But cloud bookkeeping lets you store a backup of all your data offsite. So, even if your in-house systems go faulty, the accounts and data remain secure elsewhere.

3. It enhances accessibility

With cloud-based systems, you can access the data from any device with a browser at any time. All you need is an internet connection. The digital storage of these accounts lets you make quick decisions even when you are not using the office hardware. It also helps both financial and accounting stay on the same page.

4. It prevents data duplication

Traditional accounting witnessed several errors, especially when filing for income tax, because of data recurrence. With cloud bookkeeping, you can totally eliminate that. Your employees stay in the know and they never make the mistake of entering the same data again.

Finally…

A cloud bookkeeping solution bridges the gap between various teams. You can integrate it with third-party apps and reduce the data entry time significantly. Thus, it becomes vital for any business in 2022 to have an efficient cloud bookkeeping solution. 

CRA Gift Tax Rules For Employers 2022

 If you follow the gift-tax laws of the Canada Revenue Agency (CRA) and give your staff gifts instead of cash bonuses, you and your employee will save money on Canadian income tax. Employers can deduct the total cost of the gift, and employees are not required to include the cost of the present in their taxable income.

Employee Gifts and CRA Tax Rules

Except for the following exclusions, the CRA considers all presents given to employees to be taxable benefits:

• Employees can receive up to $500 in noncash gifts per year.

• Once every five years, employees may receive non-cash presents worth less than $500 in acknowledgment of long service.

• Employer-sponsored parties or social gatherings cost less than $100 per person.

• At work-related functions such as meetings, training sessions, and so on, meals or other hospitality services are provided.

• Coffee/tea, snacks, mugs, t-shirts, and hats are worthless.

Anything over the $500 threshold is deemed a taxable benefit, and the employer may be required to make source deductions.

Gift Types 

The number of presents an employee can receive in a given year is unlimited, and the total cash value of all presents is the only restriction. Small gifts are not accepted, and the $500 limitation excludes mugs, chocolates, plaques, and other similar items.

You may convert gift certificates and stocks to cash, and performance-related incentives and bonuses will be taxable employee benefits.

Conclusion

It's crucial to ensure that staff presents are presented for the right reasons. The CRA's gift and reward rules state:

A present must be given for a particular event, such as a religious holiday, a birthday, a wedding, or a child's birth... This policy does not apply if you offer your employee a noncash present or prize for any other purpose, and you must include the fair market value of the gift or award in the employee's income.

Everything you need to know about the T1 form

 When you want to pay your taxes to the CRA, you will need to submit a form called the T1 form. It is the income tax and benefit return form that comprises details about all the personal incomes for the year. T1 form lets you detail all the taxes you have to pay, leading to a precise calculator and payment.

You can easily do this on your own. However, if you hire professional accounting services, it will become a lot easier. Since they keep track of all your payments, you can easily hand them over to the income tax services provider to assess your profile. 

How to get the T1 form?

You can get the T1 form online through CRA My Account. Under the Tax Returns View section, you can find the T1 form for the current year as well as the filled forms of past years. There are many tax clinics that offer you the form as well. Be sure to get the form for the right financial year.

What are the sections in the T1 form?

When you get the form, you can see the following sections:

1. Identification: This is the section where you fill in details about yourself. It includes name, marital status, address, business details, and other such information. 

2. Total Income: This is where you fill in information about your gross income. It must have every wage and revenue you got during the past year. You shouldn’t apply any deductions here. 

3. Net Income: This section is where you enter the amount you have after all the expenses. You can check the CRA site to understand what are the expenses that you can deduct from the total income. 

4. Taxable Income: There are a few deductions you can make based on your profile. To take full advantage of deductions, we advise you to consider opting for professional income tax services. 

5. Refund or Balance Owing: Any negative number you get here returns to you as a refund. 

Finally, you can either mail the filled form to CRA or upload it online through trusted platforms. 

Tips For Finding The Right Tax Accountant For Your Business

 

Tax filing season is full of companies looking to save on tax money. Especially for small businesses, it can be financially stressful to pay a huge amount of taxes. Yet, this only happens when they have not planned everything prior. 

The CRA offers several reductions to save money and pay only the necessary tax amount. To optimally use that, you might need income tax experts by your side. In this blog, we will help you with some tips on how to choose the right tax accountant for your business. 

1. Ask other business owners

The best way to find a good tax accountant is through referrals. Ask business owners in your circle to find out whether they know of any tax accountants. You can also ask your financial advisor for such referrals. 

2. Go for local firms

Local accounting firms understand the state-specific laws. Thus, giving you more insight into applicable tax reductions. It helps prevent overpaying and also provides quick access to their office. 

3. Check their experience

If an accountant doesn’t have any expertise in filing taxes for your industry, it is not smart to hire them. Find someone who already has a wealthy amount of experience. They tend to know more about how to align accounting with taxes than the newbies. 

4. Perform a background check

Managing your accounts is a sensitive task that involves sharing most of your financial data. Hence, do a background check on the person you hire. Speak with people who they have already worked with to get a better idea about the person. 

Finally…

Income tax accountants aren’t rare. So, it is highly possible that you might choose the wrong person for the job. But, know that it is okay to switch them up with someone else when you do not find their work satisfying. 

4 Small Business Tax Strategies To Reduce Income Tax

 

Small businesses are highly significant to the Canadian economy. According to a study, in 2021, small businesses contributed 98.1% of business in the country. It is becoming highly competitive to establish yourself firmly in the SME sector. In addition, improper tax calculations can lead to inefficient tax filing.  

The Live CFO, being a passionate income tax services provider, couldn’t help but shed some strategies to reduce your income tax. You will find some neat tricks here that will help you overcome your struggles. 

1. Do not forget about receipts 

One of the first mistakes that most small businesses do is not collecting all the receipts. Whatever you do for the betterment of your business can help you reduce the final tax amount. Over the course of the financial year, you should collect receipts for all the little things. Even the cost of purchasing a few envelopes.  

2. Include the Non-capital losses

 

There are some financial years in which you would have incurred more expenses than income. You can use this to decrease your income tax. If you have any unapplied non-capital losses in the last 7 years, you can include that in your current year. This can significantly reduce your taxable income. 

 

3. Earn tax credits through charitable donations

 

Doing good for society always helps you in the long run. When we provide income tax services to our clients, we always urge them to keep track of all their charitable donations. If you make donations to registered Canadian charities, you can earn more tax credits and reduce your income tax amount. 

 

4. Plan your CCA

 

This is one of the best strategies to reduce your income tax. Many small businesses do not know that you do not have to claim your Capital Cost Allowance in the same year. You can carry it over. So, save it for years you expect your income tax amount to increase. 

 

Finally… 

As a small business, you must save as much as possible through smart methods. Do that through professional help and enjoy the savings!

Reasons Why Pets Are Good For Children With ADHD

 

 

Raising a child with ADHD can be a handful. However, it is nothing less rewarding for you as a parent. They come with all the excitements and traits in a heightened manner. Instilling healthy control and development skills are vital for their growth. Yet, it is almost never easy to get a child with ADHD to do what you wish.

To tackle this, many doctors recommend parents adopt a pet. Apart from being a furry companion, they also help kids with ADHD in several ways. Let us take a look at them. 

 

1. Reduces stress levels and anxiety

 

When you pet a dog, you feel happy. This is because this particular activity increases serotonin levels and lowers cortisol(stress-inducing hormone) levels in the brain. The same applies to kids with ADHD. These kids naturally show higher emotions than other kids their age. A friendly companion eases their stress and helps them find comfort in times of emotional episodes. 

 

2. Teaches responsibility

 

Children feel a level of connection and responsibility to their pets. A dog, for example, follows a routine for its daily activities. When your kid takes the charge, they learn to do things on time along with the pet. It helps them understand boundaries and improve their focus. Which counteracts the ADHD and facilitates their learning developmental skills. 

 

3. Provides physical exercise

 

According to a study, children with ADHD showed better attention and impulse control after a short exercise session. And, pets love nothing more than engaging in playful physical activities. Specially trained dogs can help provide your child with the right amount of physical exercise every day. Which will eventually help them thrive in the future. 

 

4. Offer the much-needed companionship

 

At our Avenue Road Child Care in Toronto, we understand how important it is for a child to have emotional support. Most pets do too. They can recognize your child’s emotions and react accordingly to soothe them. And, a pet will never judge your child. It will always be there for them no matter what they do. Most kids with ADHD feel disconnected from others because of a lack of deep understanding. With a pet, however, they feel comforted and connected. 

 

Finally…

 

Having a pet is only one part of the solution. Continued love, guidance, and support from every environment you place your kid in is vital. If you suspect that your kid might have ADHD, consult an expert immediately.