Frequently Asked Questions About Tax Returns
Whether you self-file tax returns or work with an accountant, you need to know the tax deadline, the acceptable forms of tax payment, ways to minimize taxes, etc. While trying to find basic information, clients often have a ton of questions about tax returns but find answers difficult to come by.
To ensure you have all your doubts cleared and are armed with the most accurate information available, Brunning & Company Chartered Professional Accountant has answered some of the most frequently asked questions about tax returns.
1. When are my taxes due?
In Canada, your personal taxes must be filed by April 30 of the following year. If you have a business or rental schedule on your return and it is due on June 15, the payment will still be due by April 30.
2. How do I pay my taxes?
These are the following few ways you can pay:
- Through your online banking.
- Using the CRA’s My Payment function
- The bank.
- Mail your cheque.
- Pre-authorized debt.
- Credit card/PayPal/e-transfer using a third party provider.
3. How will I receive my refund?
If you have set up your banking information with CRA, they will directly deposit it into your account. If not, they will mail you a cheque.
4. Should I file my taxes or hire an accountant?
If you feel comfortable filing taxes on your own, then go ahead! Some returns can be very straightforward and easy to file without the help of an accountant.
If the thought of doing your taxes stresses you out or you feel like there are some complex items on your return then talk it to an accountant.
One of the many benefits of going to an accountant is the aftercare you will receive. Most accountants will correspond with CRA and takes care of anything that may come up on your behalf.
5. How can I lower my taxes?
Other than claiming the deductions and credits you are already entitled to, a great way to lower your taxes is to carry out RRSP contributions. On average, for every dollar you put in an RRSP, you save $0.30 in tax.
6. Which RRSP contributions are included on my return and when is the contribution deadline?
On your 2018 return, you claim the contributions from March 1 to December 31, 2018, and January 1 to March 1, 2019. The RRSP contribution deadline is within the first sixty days of the year.
7. Do I need to keep my documents?
Yes, CRA requires you to keep your documents for six years. They can go back and reassess prior years, and if they find something suspicious, you will need to provide the backup.
If you have any more tax-related questions, reach out to Brunning & Company Chartered Professional Accountant. As a chartered professional accountant in Lethbridge, AB, we ensure that we exceed expectations and always put you first. We offer accounting, tax and bookkeeping services for female entrepreneurs in Lethbridge, Coaldale, Fort Macleod, Calgary, Edmonton, Red Deer, Medicine Hat, Alberta and across Canada.