My friends at UFile wanted you folks to be ready for your taxes, so here is a helpful tax checklist for you to use.
New Year Tax Checklist
By Gerry Vittoratos, UFile
☐ Get all of your tax documents organized in one folder. Subdivide your folder into the following groupings:
- Income slips (T4, T5, T5008, T4A, T4A(OAS), T4A(P), T4RSP, T4RIF, capital gains transactions summary etc…)
- Expense receipts related to deductions (RRSP, union or professional dues, childcare, moving expenses etc…)
- Expense receipts related to credits (Donations, medical expenses, tuition etc…)
☐ Do you own any foreign property (bank accounts, stocks, bonds not in an RRSP/RRIF/TFSA) whose overall cost surpassed $100,000 Canadian at some point in the year?
- If yes, you must complete and submit the T1135 form
☐ Has your marital status changed in the year?
- If yes, you must advise the CRA of the change through the RC65 form (https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc65.html )
☐ Did you sell your personal residence during the year?
- If yes, you must produce and file the T2091 form with your tax return
☐ Did you move to another province during the year?
- If yes, use the tax package of the province you resided in on December 31st.
☐ Do you have an impairment that is eligible for the Disability Tax Credit?
- If yes, submit the T2201 form (https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2201.html) to a medical practitioner to fill, and submit to the CRA. Once approved, claim the Disability Tax Credit.
☐ Did you have a child during the year?
- If yes, complete and submit the RC66 form to the CRA to start collecting the Canada Child Benefit.
☐ Do you live with an infirm or disabled adult dependant in your own home?
- If yes, claim the Canada Caregiver amount (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/canada-caregiver-amount.html)
☐ Do you have a copy of your previous year’s Notice of Assessment?
- Important to find this document, which indicates carry forward amounts you can claim to reduce your tax payable and your RRSP contribution limit.
☐ Are you employed but with low income and had medical expenses?
- Make sure to claim your medical expenses even if you have little to no tax to pay. You might be entitled to the refundable medical expense supplement credit, which reimburses you for portion of your expenses regardless of your tax payable.
☐ Are you self-employed and you paid income tax during the year through instalment payments?
- If yes, make sure to claim these instalment payments against your tax payable.
Other items based on recent changes
☐ Are you self-employed and purchased capital assets during the year?
- If yes, make sure to claim the Accelerated Investment Incentive which triples the prescribed depreciation rate for the asset (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/accelerated-investment-incentive.html )
☐ Are you self-employed and purchased a zero-emission vehicle after March 19th, 2019?
- If yes, make sure to expense fully the purchase of the vehicle by claiming an 100% depreciation rate. (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/capital-cost-allowance/classes-depreciable-properties/zero-emission-vehicles.html )
☐ Are you a school teacher in an elementary of secondary school and paid for supplies out-of-pocket?
- If yes, make sure to keep the receipts and claim the Eligible Educator school supply tax credit (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-468-469-eligible-educator-school-supply-tax-credit.html )
☐ Was your income (or your spouse’s) too low in the prior years for the childcare expense deduction to have an effect on your tax return?
- If yes, Ontario (New CARE credit) and Quebec offer a refundable credit that can be claimed even if your income and tax payable are low. Make sure to claim the expenses even if there is little effect on the Federal side.
☐ Are you a modest income earner with multiple T4s?
- This year the federal government has enhanced the Canada Workers Credit. This is a generous refundable credit, but your income still needs to exceed a minimum threshold amount to qualify for it. Make sure to declare all your employment income.
Remember that UFile allows you to file for free, if you qualify.
Gerry Vittoratos – Gdip Taxation
Gerry Vittoratos has been working for Thomson Reuters for over 10 years as a trainer and tax support resource person. In his capacity as head trainer, Gerry has been providing training sessions to tax professionals all over Canada. He has also made several radio and TV appearances on BNN and Global TV as the UFile tax specialist discussing a multitude of tax topics, and is the author of the UFile and DT Max tax blogs. Gerry has also served as the main resource person for the tax support department of Thomson Reuters, resolving complex tax issues and questions for tax professionals using the DT Professional Suite.
Gerry obtained his Graduate Diploma (Gdip) in Taxation from University of Sherbrooke in 2018, and is in the process of obtaining a Master’s of Taxation.
Fantastic tips! I wonder if there was an even more comprehensive checklist you could create (or add to this magnificent one already) to walk through the ever so confusing tax plains each year?
Gerry Vittoratos….you have my dream job!! Master’s of Taxation? I didn’t know that existed (do tell :-))… good luck, congrats!