The Top Five Canadian Tax Return Questions Answered

        Part of the 78 Tax Tips For Canadians For Dummies Cheat Sheet

When should you file your Canadian tax return? How do you get missing tax forms from the Canada Revenue Agency? These are just a couple of the common questions that arise at tax time. This article gives you the answers you need to eliminate tax-time stress and worry.

• Where do I file? If you choose to paper-file your return, the address where you send your tax return depends on where you live. The Canada Revenue Agency (CRA) sends you mailing labels in your tax package each year, but if you’ve misplaced them you can visit the CRA Web site to obtain the address of the tax office where you should send your return. You can also call 1-800-959-8281 to request this information.
• When is my return due? Your income tax return is due on April 30 each year, or June 15 if you or your spouse ran a business in the year, although if you owe tax your payment is due on or before April 30). If you owe taxes, make sure your return is transmitted or postmarked before midnight on the due date to avoid late-filing penalties and interest.
• What happens if I file late? If you file your return late and you owe taxes, you’ll automatically be charged a penalty of 5 percent of your balance owing. On top of that, you’ll face a penalty of 1 percent of the balance owing for each month your return remains outstanding, to a maximum of 12 months. And don’t forget the interest: the CRA charges interest, compounded daily, on outstanding balances and penalties. At the time of writing, the interest rate on overdue taxes was 5 percent, but this could change quarterly.
• Can I change my return if I find a mistake? Yes, you can file a T1 Adjustment using form T1-ADJ, “T1 Adjustment Request,” to amend your return for any mistakes you may find after the fact. You can also request changes online under the “My Account” option on the CRA Web site.
• Where can I get missing forms? The majority of the CRA forms are available for download from the CRA Web site. To order forms by phone, call 1-800-959-2221. If you’re missing the package and guide sent to you by the CRA, you can pick up a copy at your local post office.

From Dummies.com website

Top things families should know about taxes

Did you know? There are lots of benefits and credits to help families with their expenses throughout the year and reduce the amount that they owe at tax time. Important facts The following tips may help you or your family:

• Children’s fitness tax credit – Working individuals and families with low income may be able to claim this refundable tax credit. The WITB includes a supplement for individuals who qualify for the disability amount. Eligible individuals and families may also apply for advance payments.
• Children’s fitness tax credit – Did your children play soccer, take ballet classes, or participate in a  program of physical activity in 2012? If so, you may be able to claim up to $500, per child, of the cost of these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 in eligible expenses.
• Children’s fitness tax credit – Did your children participate in a program of artistic, cultural, recreational, or developmental activity in 2012? If so, you may be able to claim up to $500 of the money spent per child on these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 on registration or membership fees for an eligible program.
• Children’s fitness tax credit – Did your children attend daycare or a program such as a summer day camp in 2012? You or your spouse or common-law partner may be able to claim what you spent on Children’s fitness tax credit in 2012.
• Children’s fitness tax credit – If you have a dependant with a physical or mental impairment, you may be able to claim up to an additional $2,000 when you claim certain non-refundable tax credits.
• Children’s fitness tax credit – The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.
• Children’s fitness tax credit – Did you or your eligible dependant use public transit in 2012? You may be able to claim the cost of certain public transit passes or electronic payment cards under this non-refundable tax credit.
• Children’s fitness tax credit – Did you buy a home in 2012? You may be able to claim a non-refundable tax credit of up to $750 for the purchase of a qualifying home.
• Children’s fitness tax credit – You may be eligible for this tax-free benefit if you cared for a child under the age of 18 who is eligible for the Children’s fitness tax credit.
• Children’s fitness tax credit – A tax-free monthly payment that helps eligible families with the cost of raising children under the age of 18. To find out if you qualify for this benefit as well as others, use our Children’s fitness tax credit.
• Children’s fitness tax credit – If you have children under the age of six years, you may be eligible for this taxable benefit, which supports child care choices for families.
• Children’s fitness tax credit – You may be able to claim a non-refundable tax credit based on the medical expenses paid for you, your spouse or common-law partner, or your children for any 12-month period ending in 2012.
• Children’s fitness tax credit – If you or a family member has a severe and prolonged impairment in physical or mental functions, you may be able to claim this non-refundable tax credit.
• Registered retirement savings plan (RRSP) – If you saved for your retirement in 2012 by investing in RRSPs, you may be able to deduct your contributions to reduce your tax.
• Registered disability savings plan (RDSP) – A RDSP is a savings plan to help Canadians with disabilities and their families save for the long-term financial security of a person who is eligible for the disability tax credit.

The CRA’s online services make filing even easier The CRA’s online services are fast, easy, and secure. You can use them to file your income tax and benefit return, make a payment, track your refund and more. Sign up for direct deposit too! Your refund and any benefit or credit payments owed to you will be deposited directly into your account, putting your money into your pocket faster. For more information, go to www.cra.gc.ca/getready. Facts about filing your income tax return online

• Filing your return online means receiving your refund faster.
• Filing online is easy. Certified software packages and Web applications (some of which are free to use) guide you through the process, ensuring you don’t miss out on credits and benefits you may be eligible for.
• If you are already filing online, you no longer need a web access code to file your return. Now, all you need is your social insurance number and date of birth.
• Filing online is secure. The CRA uses the same high level of online security used by Canadian financial institutions.
• Go to www.cra.gc.ca/getready and let us walk you through it step by step.
• If you need help filing your return, you can contact the Community Volunteer Income Tax Program. To find a volunteer tax preparation clinic, go to www.cra.gc.ca/volunteer.

From Cra-arc.gc.ca

The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. I recommend that you obtain your own independent professional advice (preferably me) before making any decision in relation to your particular requirements or circumstances.