Many things have affected our lives in the past few years, since we first became aware of a pandemic that would take many lives, and leave many sick, in it’s wake.
Businesses folded in a lot of sectors, and businesses changed where it needed to in order to survive.
Our bookkeeping/accounting services had to change as well, in order for us to accommodate the curve balls that were tossed our way. Our costs in doing business changed, our prices changed to reflect some of those cost changes, and the daily way of doing things for us also dramatically changed.
We are now settling into a new “normal”, and hopefully most of the changes that were made will be a benefit to us.
This year, in Canada, we are expecting again a personal tax filing date of April 30 which falls on a Sunday. In all probability, the extension will get carried over to May 1, the first working day. You may already know that T4’s reporting income from employment are required to be filed by employers, by February 28, or a penalty will be imposed on that company. T3’s which report income from Trusts, are not due until March 31, allowing an extension for the companies issuing those documents.
The problem with that situation for most of us, is that even thou the form may not be received by you before you file your tax return, it remains your responsibility to report income from all sources. Failing that, CRA may reassess your filed tax return, even a year after it is filed, to include the unreported income. The penalty in not reporting income is not something you should take lightly. It can be very significant, and repeated times, even more expensive from a penalty and interest point of view.
This year we are hopeful that you can round up your documents required for your tax reporting, put them in an oversized envelope with your name, address, phone number and email address, and make a note to us if you have made any changes that you believe is of importance in your tax filing. A change of address, marital status, and phone number is important to us. That file can be dropped off through our office door, when the building is open from Monday through Friday from 9:30 am until 1:00 pm. We will contact you when we have any questions and when your tax return is ready for your signing authority for us to e-file your tax return.
Our building is not fully occupied, and keeping restrictive hours allows for the landlord to safeguard the hallways, and doorways from unwelcome intrusion.
Sometimes your cost of medical expenses paid out of pocket could have a bearing on your tax return. We suggest that if you purchase prescription drugs, that you contact your pharmacy, and ask them to prepare an annual statement for you, for last year. It is so much easier to look at that organized statement with it’s totals, than it is to add up little bits of tax deductible receipts. The time saving to us is very much worth the extra step in just asking for a statement of your transactions with the pharmacy.
Charitable donations can contribute towards a tax reduction when you file. Modifications to your home to help towards your better health can sometimes be used. Examples would include grab rails in your tub area, as well as modifications in your doorways to allow for an easier wheel chair passage. You will know when you have paid out of pocket, those things that relate to your better health, and include those items for us to consider on your tax return.
Those of you that have never had your own business will not know that the filing deadline for self employed individuals is June 15, and not April 30. Those of you that have never had your own corporation may not know that the corporation is considered a “legal entity”, and also is required to file a tax return. The filing deadline for each company is within 6 months of it’s “year end”. Every company decides on it’s own year end, and stays with that date almost forever, while it is still considered a company.
Please let us know of any specific questions you have regarding your bookkeeping, accounting and tax concerns. We will return your phone call as soon as possible, and truly appreciate your questions left with our answering support. When you simply want a return call, it really catches us off guard, so it is much better to be specific as to your question, or concern. It gives us a chance to gather information together, or research an answer for you.
Emailing to us is a very good way to document your information, and we will provide a “portal” where you can provide files, and scans in a secure manner, where the information doesn’t linger through an email service provided.
We wish for all of you a very safe, and happy journey through the new year. For your general interest, and if you made it this far in this blog writing, we are travelling around 1,000 miles per hour on the earth’s axis, and about 67,000 miles per hour around the sun.
And you thought we were slowing down?
Your Hollingsworth and Associates Team