Here you will find some questions that we are asked. If you still have questions, please email us and we will be more than happy to answer your question!
Q: Due to the pandemic I received CERB (CSRB/CRB/etc.), what does this do for my taxes?
A: The CERB, whether you received it through Service Canada (EI) or the CRA, it is considered taxable. You will receive a T4A from the government with the amounts you received in 2020. These amounts are to be included on your 2020 tax return.
Q: Do I have to pay back my CERB?
A: That depends. If you didn’t earn at least $5000 in 2019 OR within the 12 months before you stopped working, then you will have to pay back any CERB/CRB/etc. There may be ways around this. Contact us for more information.
Q: Should I have set some of my CERB aside for taxes?
A: Although the CERB is taxable, it is not taxed at 10%. ALL of your income is added together (including the CERB) and your taxes are determined from that. There are also tax credits and other deductions that can reduce, or even eliminate, your tax owing.
Q: Is there a penalty for filing my taxes late?
A: If you owe tax for 2020 and do not file your return for 2020 on time, you will be charged a late-filing penalty. The penalty is 5% of your 2020 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
If you are or will be charged, a late-filing penalty on your return for 2017, 2018, or 2019, your late-filing penalty for 2020 may be 10% of your 2020 balance owing, plus 2% of your 2020 balance owing for each full month your return is late, to a maximum of 20 months.
Q: How long after you file my taxes, will I get my refund?
A: Since we e-file returns, you will probably see your refund, if you have direct deposit, within 8 business days. If we have to paper file your return (mail it), it could take 6-8 weeks before April 30. It may take less time after April 30.
Q: I don’t have all of my information, can I still file my taxes?
A: Yes! You just need to permit us (it’s a form) to contact the CRA on your behalf. We can get most of the information we need to file your taxes. We prefer to have all of the information since the CRA may be missing information, or it may be incorrect. If you have already permitted us to contact the CRA on your behalf, and you haven’t revoked it, you do not need to sign another form.
If there is any new information after we have filed, we can have the CRA reassess your taxes based on the new information.
Q: Why don’t you offer instant cash-back like the big box preparers (H&R Block, etc)?
A: Cashback services are government regulated so they take 15% of EVERY $100 on the first $300 then 5% of every $100 after that. So on a $1200 refund, you’d only get $1,110 back. If you had us do your taxes, you would get the full $1,200.
Q: Why do you require payment up-front?
A: We require payment upfront. Although most clients are trustworthy, there have been a few that didn’t pay. Their taxes were filed, they received their refund, and then they were never heard from again. That is a lot of time that the client didn’t pay for. Therefore, before any work is done, all accounts are required to be paid upfront.
Q: Can I get a copy of my return?
A: You will receive a copy of the summary of your return. This summary includes the net and taxable income on your return, as well as the total of any deductions applied. The summary will also show the estimates for the HST rebate, the Trillium benefit, and the Canada Child Benefit. For a full paper copy of your return, we charge $5 per year. You won’t receive a copy of your return unless your account is paid in full. If you would like us to send the full return electronically (PDF format), there is no charge. The electronic copy is not able to be filed with the CRA, it is simply for your records.
Q: I have a rental property, is this considered a small business?
A: Yes, there are always expenses with a rental property and certain considerations that can be used to reduce your taxes. It is more complicated than a simple return, therefore we charge the small business rate. If you have many rental properties, there may be additional costs. Please call us for a quote.
Q: I am a trucker, am I considered a small business?
A: That depends on your situation. If you are an owner/operator (O/O), then you would be considered a small business (if you own the truck you drive, you are an O/O). If you receive a salary (you receive a T4 every year), then you are an employee. If you aren’t sure or have more questions, please contact us and we will be more than happy to answer them.