Have you filed your 2016 tax return in Canada? If not, it’s not too late to file.

While the official deadline from CRA (Canada Revenue Agency) was 1st May 2017, if you are due a tax refund there are no penalties for filing late.

Not sure if you are due a refund? Email us your T4 and we can provide a free tax quote with no obligation to file.

What if I don’t have my T4?

If you don’t have your T4 then worry not, as we can still file your return. This will mean, however, that we won’t be able to provide an exact estimate of what your return will be.

How do I know if I’m due a tax refund for 2016, or another year?

If you are unsure if you are due a tax refund or not, why not take advantage of our free Canadian tax quote service that we offer. Simply send us an email with your T4 (summary of earnings) from each of your job positions and let us do the rest.

Additionally, you can can also file a tax return for any other year that you have worked in Canada. Even if this is only for a short period, you are likely due a refund for that year.

How much will filing my tax return cost?

Once we provide you with your free tax quote for 2016, it is then your decision if you wish to file with us. If you do, we charge a flat $40 fee for filing, though there is no obligation at any stage if you don’t wish to continue.

I’ve left the country, can I still file?

If you have left Canada and still need to file your Canadian taxes, you can certainly still file. Even without a Canadian bank account or address to use, we can organize a cheque to be sent to your address overseas.

Further questions?

If you have any unaswered questions then don’t hestitate to get in contact with us. We don’t bite, promise.

When filing a Canadian 2016 self-employed or contractor tax return, the filing deadline is June 15th 2017, or you may have to pay a late filing fee, which we will explain later.

Additionally, if you have tax owing, you will need to pay this amount by May 1st 2017. If you have missed the deadline then fear not, as the earlier you are able to file your 2016 self-employed tax return, the lower your late filing fee will be, along with less interest on the amount owing.

Self-employed tax return rebates/refunds

There are also cases where a self-employed tax return can actually provide a tax refund for the year. This is particularly common if you have supplementary T4 (employed) income, or if you have low self-employed income for the year.

Late filing penalty

After June 15th 2017, CRA (Canada Revenue Agency) advise they can enforce a late filing penalty of 5% of your 2016 balance owing. Additionally 1% of your balance owing for each month can also be charged, for each month that it was filed late, up until a maximum of 12 months.

Interest

If you have a balance owing for 2016, it will accumulate compound daily interest of 5% charged against it. This starts from the 1st of May 2017, which means the earlier you are able to file than the lower the amount required to pay.

Get a free quote

The best method is to get your self-employed tax return completed as soon as possible.

If you need to file your self-employed 2016 Canadian tax return, drop us an email for a free quote and consultation. Send us through your self-employed income for 2016, along with any expenses you have on file, and we can help assist from there.

Are You A Contractor Or Self-Employed? How To Avoid A Hefty Tax Bill

If you are not receiving a pay cheque showing income tax deductions, the chances are that you are building up a hefty income tax bill.

There is an increasingly common practice among certain small businesses, particularly within the construction sector, where they pay employees directly with a cheque or bank transfer, without first deducting tax contributions.

This is entirely legal, however, employees are often left in the dark when it comes to their tax responsibilities, therefore not putting aside a percentage of their pay cheque to cover their income tax at the end of the year.

Unfortunately, we have seen this scenario on a number of occasions, where workers have unwittingly been left with a large income tax bill. This can often coincide with the expensive process of applying for permanent residency in Canada, leaving them in a tough spot.

Here are some tips to help avoid being stuck with a hefty income tax bill, if you are being paid on a contractor or self-employed basis.

Tip 1: Find out your tax status

If you are unsure whether you are being paid on a contractor / self-employed basis, the first thing is to find out.

You can ask your employer directly, or the more reliable method is to request your detailed pay stub or summary of earnings. On this it should outline your income tax contributions, along with CPP, EI and other potential contributions, such as union dues.

If you’re still unsure, drop us a message and we can help provide assistance.

Tip 2: Request being put on the payroll

If you discover that you are being paid as a contractor, you can request that your employer pays you through payroll, with income tax, CPP and EI starting to automatically be deducted from your pay cheques.

Tip 3: Save a certain percentage of earnings

If your employer refuses to switch you to being paid through the method above, or you wish to remain on a contractor and self-employed basis, you can prepare for your tax bill by putting away a certain percentage of your earnings into a savings account.

Information regarding how much tax you are required to pay can be found on the CRA (Canada Revenue Agency) website, where it differs from province to province and depends on your tax bracket. More information on this is available on the CRA website: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Alternatively, feel free to contact us and we can help provide guidance on the amount of money you should be saving for your income tax bill.

Tip 4: Be aware of expenses you can claim

One of the benefits of being on a contractor / self-employed basis, is that it allows you to claim on a number of expenses, which you wouldn’t have been able to as a normal payroll employee.

This can drastically reduce your taxable earnings, meaning less tax for you to pay. There is a huge variety of expenses that can be claimed, such as vehicle use, phone bills and a certain portion of rent and hydro.

Tip 5: Hold onto receipts

Finally, don’t forget to hold onto your receipts, as CRA can audit your tax return at any time. If you are claiming expenses for a new car or laptop that you have bought, for example, ensure you keep the receipts to help lower your income tax bill.

For more information on contractor and self-employed tax returns drop us an email, we’re more than happy to help.

Top 3 Money Saving Tax Tips For Actors

Are you earning money in Canada as an actor? If so, you are likely being paid on a self-employed basis, in which case you are required to fill in a self-employed tax return.

While this requires you to pay tax on your earnings, there are a number of money saving tax tips to help reduce your tax bill, along with reducing the chances of being audited by CRA (Canada Revenue Agency)

Tip 1: Work-space-in-the-home expenses

One of the most important and useful money saying tax tips is claiming on work space in the home, as part of your expenses as an actor.

While this isn’t applicable for everyone, depending on your circumstances, it potentially allows you to claim back part of your living expenses, such as rent, electricity, insurance and a number of other costs.

Ensuring you cover all of your work space expenses is crucial in getting the lowest tax bill possible, or you could miss out on potentially hundreds or thousands in unclaimed expenses.

Tip 2: Motor vehicle expenses

As an actor, you are likely to get around the place, figuratively. Therefore, ensuring you are claiming back your permitted motor vehicle expenses can help massively reduce your tax bill.

You can claim back on a whole host of motor vehicle expenses, such as insurance, repairs and even fuel costs that were used for work-related purposes. A drivers log is an essential item to keep maintained for this expense claim, so speak to us and we can help advise how to create and maintain one, as this is a regular area where CRA will audit your return.

Tip 3: Capital cost allowance expenses

One of the easily missed expenses, though hugely important for reducing your tax bill, is capital cost allowance, particularly carrying over prior years assets to the current year’s tax return.

Assets that were purchased for work-related reasons can be claimed back on your tax return for the entire duration of the asset’s financial lifespan. This is often missed or forgotten when lodging tax returns, though can make a huge different to the overall amount of tax you are required to pay.

If you purchased a laptop, for example, this can be claimed back on each subsequent years’ tax return, as long as the depreciation is correctly considered and applied.

Help with your self-employed tax return

If you are unsure on how or what you can apply to your tax return, or whether you are getting the most out of your situation, why not get in contact for a free consultation with one of the team at JacksTaxBack.com today.

Our self-employed tax returns are completed for a flat $150 fee, with no hidden charges or additional fees. Tax doesn’t have to be a taxing experience, after all.

Here is Jonathon Thomas from the JacksTaxBack.com team showing you how to easily claim your Canadian tax return in three easy steps.

Even those of you on an international experience Canada visa are eligible to apply for their tax back, so why not get in contact for a free quote today.

Are you ready for the new tax return season?

Tax season is just around the corner, but are you ready to file your Canadian tax return for 2016?

Filing your tax return, especially if you are a student, overseas or temporary worker in Canada can be a daunting process at first, though it’s really quite simple. Here is how to get yourself through tax season in these three easy steps.

Step 1: Request your T4

Employers are obligated to provide your T4 (which is a summary of your earnings) at the end of February, though many of them will provide it before this date, especially if you request it. You will need a T4 from every job that you worked during 2016.

Step 2: Send us a copy of your T4

In either scanning or taking a photo of your T4 (or T4s), email this through to us and we can get a free tax return quote to you right away. We also request that you provide the dates you entered or exited Canada (if applicable), as this can significantly affect your return.

Step 3: Expenses and credits

Once you have sent a photo or scan of your T4 (or T4s) to one of our team, they will be in touch shortly to complete the tax return process. This includes adding any tax credits you qualify for, while also seeing if you are eligible to claim a number of different expenses, such as transit fares and medical costs.

Once we have all of the necessary information, we can file your return within 24 hours at our flat rate of $40. No hidden fees or nasty surprises. How is that for service? Tax doesn’t have to be taxing, after all.

Happy tax season from the JacksTaxBack team – we hope to hear from you soon.

Think you have missed the deadline for filing your 2015 Canadian tax return?

Contrary to popular belief, it isn’t too late!

This is great news for those of you that are due to receive a tax rebate/refund, which is mostly anyone that worked during 2015 or any other year that they have not previously claimed for.

To get a free and no obligation tax return quote simply send us an email with a photo or scan of your T4 or T4s, along with the date you entered and exited Canada and we’ll get a free quote to you by the next day.

Not sure what a T4 is, or how to obtain one? We’ve got all the details on our frequently asked questions page.

Also note that if you were an overseas worker or student working in Canada, you are still entitled to claim your tax refund even if you have returned home. For our flat fee of $40 it is a quick and easy process with no hidden charges.

With our average refund for 2015 being over $800 it would be crazy to let well earned money go unclaimed!

Jonathan Thomas went for a boat trip… what will you spend your tax rebate on?

Watch out salmon! Jonathan is getting ready for the salmon run with his bear friendly fishing rod. Thanks @granvilleislandboatrentals . It’s early for the salmon run but not too late to file your 2015 tax return! #jtb #jtbear #jackstaxback #pnw #bear #vancitybuzz #vancouverisawesome #vancouver #fishing #salmon #salmonrun #boat

A photo posted by JacksTaxBack.com (@jackstaxback) on May 30, 2016 at 5:48pm PDT