Taxes

Essential tips to avoid falling in income tax debt – Don’t stay under the gun of the IRS

Reduce Tax Debt

There are many people who carry different forms of debt, whether mortgage debt, car loan debt, student loan debt but one kind of debt that most consumers avoid falling into is IRS debt. Income tax debt is something that is much different from that of normal debt as you can’t escape this kind of debt either through bankruptcy or any other option.

The Federal government will take stringent steps to assign debt collection agencies who will harass you until you ought to pay back your taxes...

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File Tax Online: How to NETFILE

How to NETFILE - File Tax Online

As stated in my previous article, Income Tax – The Agony and the Ecstasy, many Canadians choose to prepare and submit their own tax returns, using the Income Tax and Benefit Guide and other supporting information. Increasingly, they are abandoning the paper return and opting to file electronically. This article will provide you with an overview of how to NETFILE.

A Growing Trend to File Tax Online

According to the Canada Revenue Agency (CRA) website, in 2012 almost 66 % of Canadians filed their returns electronically, either on their own or with the help of a tax preparer...

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Income Tax and Self-Employment

IncomeTax

As stated in my related article “3 Main Components of a Basic Tax Return”, if you are reporting income from self-employment in Canada, you must provide an income and expense statement which contains your total income for the year, a breakdown of operating expenses, and your net income or loss.

This article is directed to owners of small businesses and provides information about the income and expense statement and business operating expenses.

This information and additional details can be found in the Canada Revenue Agency (CRA) information booklet entitled “Business and Professional Incom...

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Income Tax – The Agony and the Ecstasy

Income Tax - The Agony and the Ecstasy

It’s that time of year again! Millions of Canadians are preparing to file their annual personal income tax returns. For many, it’s a formidable task which they tend to postpone until the last possible day, which happens to be April 30th of each year. There is no denying that the tax return process can involve a number of forms, schedules, information slips, and yes, a certain amount of frustration. However, in many cases, it is not as complicated as some may think.

Main Components

The basic tax return can be broken down into three main components: income, deductions from income, and non-r...

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RRSP or TFSA – Which Savings Plan is Best for You?

RRSP or TFSA?

What are RRSPs? What are TFSAs? How are they different? What are the advantages of RRSPs and the advantages TFSAs? Which is best fit for your savings plan? Registered Retirement Savings Plans (RRSP) and Tax Free Savings Accounts (TFSA) are both good ways to save and allow Canadians to invest in a variety of funds including guaranteed investment certificates (GICs), mutual funds, stocks and bonds. However, they are subject to very different tax treatment.

RRSP

The annual deduction limit for RRSPs, also known as contribution room, is 18 % of your previous year’s income as reported on your tax re...

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