Personal Tax Accountant Richmond
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A personal tax accountant in Richmond
For some of us, the tax season only takes a few hours to navigate. It’s not exactly funny, but it does the job.
What you need to know about taxes in Canada
Before we delve into the why, when, and who to hire an accountant to pay your taxes, let’s make clear some basic tax facts that every Canadian should know.
First, anyone earning more than $ 3,500 a year and living in Canada is required to file an accountant tax return. The CRA, the Canadian Revenue Agency, is responsible for administering tax laws and collecting tax payments. These are the people to whom you send the tax return and any related checks. When you or your accountant have finished preparing your tax return, you will know if you owe more money to the CRA. If you do, you will need to send a check to your tax return or make an electronic payment if you are filling it out online.
The personal accountant tax return must be filed by April 30th. This means that if you submit your tax return electronically, you must submit it by that date. If you send your tax return by post, you must stamp it no later than midnight on April 30th. When we talk about the tax season, we are talking about the few months leading up to the Tax Day after the end of the previous year. This is the time when tax professionals (and you, if you choose to go it alone) are busy preparing the paperwork needed to file your taxes.
It is incredibly important to file your taxes on time to avoid late fees. If you fail to submit your statement on time and owe a balance, the CRA will charge you a late deposit penalty of 5% of your balance. If you’re waiting for an accountant’s tax return, it’s a good idea to set up a direct deposit with the CRA to make sure the refund is deposited directly into your account so you don’t have to wait for it to arrive in the mail. With these details out of the way, let’s go ahead and help you decide if you need to hire a professional accountant to pay your taxes.
Should you pay the taxes by yourself?
There is nothing like the satisfaction that comes from completing something difficult after putting in blood, sweat, and tears. While your taxes may or may not have these side effects, they definitely deserve a badge of honor. If you are willing to put the time and energy into researching, understanding, and completing your taxes, we commend you. It may not always be the best course of action, but if the following situations apply, it may make sense to pay your own taxes.
1. When you have time but no money
Making your own taxes is free, or almost free if you use tax software, which can make it attractive to anyone on a tight budget. However, it takes some time. You will likely have to commit between 6 and 26 hours spread over several days or weeks to prepare and file your tax return, depending on the complexity of your finances, the method you choose, and your level of experience.
If you can enter the hours, you may be able to file your taxes relatively easily and inexpensively. Just make sure you do this well before Tax Day so that you have time to find answers to the questions you come across and collect any paperwork you didn’t know you needed.
2. When your tax situation is not complicated
If you are young and single, have a job, and don’t have many other sources of income, or your finances are otherwise pretty straightforward, you probably won’t need to hire an accountant to pay your taxes. You don’t have to worry about getting it wrong if you do your research and use tax software.
The good news about tax filing in the modern era is that you have tax preparation software at your disposal. There are many helpful tax services available online to hold your hand as you record your taxes, making the process a lot easier than it looks on paper. TaxTron, TurboTax and H&R Block are some of the more popular options.
3. When you know finance
And we can add that we know the tax laws. If you have a professional experience or passion that has given you sufficient knowledge of Canadian tax law and a deep understanding of your financial situation and how tax laws affect it, you should be able to pay your taxes, none. problem. Even if you’re new to tax and finance but are numbers savvy and willing to learn before the tax season begins, it can be worth it. Not only will you save money on hiring a professional, but you can also save money on taxes if you play well.
For others, such as rental property owners, those who own shares in foreign companies, people earning more than $ 200,000 a year, or those looking for tax-free savings options, taxes can be much more complicated.
When should you hire an accountant?
If you don’t have time to do your taxes, crunching numbers isn’t your thing, or your tax situation is more complicated than you think you can handle, there’s no shame in hiring a professional. In fact, there are many good reasons to hire an accountant to do your taxes for you. If you decide to hire an accountant, always make sure he is accredited and has tax experience. The most common accreditation is the Chartered Professional Accountant (CPA). Here is a situation where it might make sense to involve a professional:
1. When your tax situation has changed dramatically
Did your income go up drastically last year, did you have a baby, and eventually took flight and profit from your side hustle and bustle? Have you made (or lost) a lot of money by buying and selling NFTs or did you get an inheritance from your grandmother? All of these cases will affect your tax situation, which means it will change your tax bracket, how you report it, and ultimately how much you owe. Work with an accountant who has experience working with people in similar situations and can guide you through the tax implications of your current life.
2. When you own your own business
Income, Expenses, Profits, and Losses – Running a business involves many moving parts and even more numbers, which can make filing your tax return incredibly complicated. In this case, it is almost always advisable to hire an accountant who specializes in working with small business owners.
3. When you are new to the country
If you’ve recently immigrated to Canada and have never filed taxes in the country before, it’s a good idea to talk to someone who knows how to do it. You may not need a full suite of services from an accountant, but a simple consultation will give you the guidance and tips you need to get started.
4. When you are overwhelmed
If you’ve started gathering all the paperwork and forms needed to file taxes and it’s gotten a little overwhelming, you may want to hire some help. Tax season awaits no one and can come at a time when work is extremely hectic; maybe you have a baby or are dealing with a family emergency. If you feel the rate is manageable, it may be worth working with a professional accountant to spare you the added stress of filing taxes.
What questions should you ask your personal tax accountant
These are just a few scenarios where it might make sense to hire a personal tax accountant. Personal Tax accountants not only prepare and file taxes, but they can also save you money and provide useful information for future tax planning.
There are different types of international tax accountants, from certified tax accountants to registered agents. To narrow down your choices, ask potential candidates the following four questions.
1. How do you charge for your services?
In general, the more complicated the return, the more you will pay. Some accountants charge by the hour; others charge a flat rate. If you have a particularly complicated return, a flat rate may be a more affordable option because your taxes will take longer to prepare.
In addition to the fee structure, ask if there are any additional costs for items such as the following:
- Other rental income plans
- Charitable Donation Support Forms
- Unusual line items such as home purchase credits
Here are two more tips to keep in mind regarding fees:
Stay away from international tax accountants who charge based on your refund amount, as they may suggest you take inappropriate credits and deductions to make more money. Provide applicants with your return for the previous year, excluding any taxes you paid to the accountant. This allows them to become more familiar with your situation so they can offer a more accurate quote.
2. Do you know the specific requirements for the places where I must apply?
Each state has unique storage requirements. This can complicate your return if:
- Moved from one state to another
- Work outside the state you live in
- Owning a rental property or owning property in another state
Describe your unique situation and ask each candidate if they have experience and knowledge of all the requirements that apply to you and your family.
3. What is your availability and how can I contact you outside the tax season?
Look for professionals who work all year round, not just during the tax season. You want to work with someone who will be willing to answer tax planning questions that arise mid-year or help you with questions you may receive from the IRS. In the event of an audit, you want to make sure they are available and experienced. Ask if they have ever represented someone on an audit and whether or not they continue to offer these services. If so, also identify their audit fee structure.
4. Will you use the VAT number to sign my return?
Asking this important question will give you two answers:
Does your accountant have a tax code? A TIN is required for a professional to legally prepare taxes, so failing to do so could result in a breach of contract.
Are they willing to give their name on your return? This signals that they will prepare their taxes fairly and honestly. If the person is reluctant to commit to signing up, remove them from your list and move on.
Once you find someone who meets your needs and feels comfortable, schedules an in-person meeting to get you comfortable with them. This is an important relationship between a trusted advisor and the advisor (you), and hopefully, it will last for years to come.
Hiring an accountant is a big plus
Tax laws are incredibly complex and ever-changing, so even if you did your taxes last year and the year before, not only is your current tax situation likely different, but the laws governing the tax are likely to be. amount of taxes you need to be fine. With the COVID-19 crisis, there have been a lot of fiscal changes in the past year and the situation continues to change.
Accountants are paid to know these things back and forth. Their job is to pay attention to changing laws and understand how this affects everyone filing taxes. Because they have a thorough understanding of tax law, they also know how to maximize the number of deductions you can claim, ways you can invest smarter to keep more profits, and best practices for your business when it comes to taxes. All of this experience can save you huge fees that may exceed the commission you pay to the accountant. So, whether you are overwhelmed, in a new tax position, engaged in running a business, or just completely new to Canadian tax law, it is a good idea to try to hire an accountant to help you prepare and file your tax return.
For help – documentation required
The T1 tax return, which may seem very simple, is actually a consortium of various other forms, which have been briefly outlined below:
T776 – You can declare income and expenses related to rental income on this form. It usually represents income from real estate in which space is rented.
T2125 – Form T2125, Statement of Business or Professional Activities, can be used to report business and professional income and expenses. This form can help you calculate your gross income and net income (loss), which are required when filing your federal tax return and benefits statement.
T777 – Form T777, Statement of Employee Expenses, is intended for certain contract employees, certain salaried employees, and certain employees who work from home.
Annex 3 – Annex 3 is divided into 8 sections for reporting the disposal of different types of capital goods and for calculating the number of taxable capital gains.
Documents required for the personal tax return:
We work hard to submit your return on time to avoid penalties and interest. T1 returns are generally due on April 30th following the end of the fiscal year. For self-employed workers, the deadline for submitting the T1 application is extended to 15 June. Please note that any taxes due are still due by April 30th.
Look no further in your search for T1 return services with an accountant near you, as our team of experts at Web tax Online can make your tax return filing easy. All you need to do is give us your answers to the questionnaire and from there we will process it to make sure everything is reported correctly.
A personal income tax accountant can help.
Tax Credits
The Government of Canada also provides different tax credits to individuals in their personal tax returns based on their personal circumstances. As a personal accountant in Toronto, we will ensure that all tax credits are properly requested on your personal tax return. Below is a list of commonly used tax credits on a T1 return:
- Spousal Exemption
- Dependents (born earlier than 1993 in the 2013 tax year)
- Disability Amounts- T2201
- Adoption Expenses
- Tuition, Fees, and Education Amounts- T2202 or T2202A
- Interest Paid on Student Loans
- Medical Expenses
- Caregiver Amounts
- Charitable Donations- 2013 was the first year of implementation of the first-time donor’s super credit
- Federal or Ontario Political Contributions
- Public Transit Pass Amounts (must be monthly passes or passes for four consecutive weeks)
- Rent or Property Tax Credit (specific conditions apply)
- Child Fitness Credit (max. $500 per child)
- Children’s Arts Tax Credits (max. $500 per child)
What are some common mistakes when declaring your taxes?
By the time you file your small business tax return, you’ve already gotten over the most common mistake business owners make: don’t file. The second most common mistake is not paying the due taxes. This mistake often costs you more in fines and commissions. When you prepare your taxes, you take some risks, which is another reason to hire a tax advisor or a personal income tax accountant. Other common mistakes include:
- Failure to pay the estimated tax installments throughout the year
- Not knowing what corporate deductions and allowances to take
- Forgetting to separate business expenses from personal expenses
- You don’t keep accurate records of your expenses
Some experts say not hiring an accountant is your biggest mistake. The Web tax Online team will guide you through your taxes, making the whole process a lot easier. We can also help you with accounting, business planning, payroll, and more.
What are the differences between Canadian and US tax laws?
You can have a Canadian company operating in the United States and vice versa. This complication is another good reason to hire an accountant. As tax laws are subject to change, it’s nice to know your accountant is up to date on current CRA requirements. Significant differences in tax laws between Canada and the United States include:
- Due to differences in government spending, Canada has a higher tax rate.
- Taxes are higher in Canada for people with higher incomes than in the United States.
- Canada has a tax on goods and services; The United States does not.
Whether you are a partnership, sole proprietorship, or limited liability company, it is advisable to seek outside help and hire an accountant. With Web tax Online you have a free consultation and fixed prices. Plus, we have flexible payment plan options available to suit your needs, so you can budget for our services stress-free.
Characteristics of a good accountant
Make sure the professional specializes in taxes and is aware of recent or upcoming changes in the tax environment. An experienced accountant will bring you more experience, making your taxes easier and less stressful. The accountant must also be an accountant. A personal income tax accountant must be interested in digging into your finances to understand your business. Tax advice requires personalized services, a one-size-fits-all approach will not be appropriate.
Attention to detail is a must as there is a lot to keep track of. There is information to be collected, forms to be filled in, deadlines to be met… the flow of information has to be organized. Clear communication is essential for tax advice. It requires fostering open communication, keeping the client informed of what is happening with his taxes, and being available to answer any questions the client may have about the process.
Look for the audit protection service. Even if an experienced accountant will be immune to a CRA audit, in other words. However, if an audit is unavoidable due to any circumstances, a tax expert must be sufficiently informed to defend your rights. In particular, you may be able to easily pass the audit and keep more of your hard-earned cash.
Let’s get in touch
We don’t just guarantee the quality of our work, but we also promise highly competitive rates which will definitely be affordable for your business. send us a message with your inquiry or call us today.
How to find a good accountant?
Once you know that your tax needs must be supported by a competent accountant and you understand the qualities of a professional. Who can do it for you? The third question that arises
“How to find a good accountant?”
Narrow down the pool of potential international tax accountants in your area by searching the following media
- recommendation,
- Online reviews,
- List of accountants in professional networks,
- List of tax practitioners at the State Accounting Office
Bottom Line
Hiring an accountant can save you time and money if you have a complicated tax situation or don’t have the ability to put the effort into filing your taxes correctly, but that doesn’t mean it’s right for everyone. You certainly don’t need to hire an accountant if you’re willing to do it yourself. With advanced software and a wealth of free resources available to Canadians, it’s easier than ever to pay your taxes accurately and efficiently.
We know that neither option is “fun” per se, but paying taxes is necessary if you want to live in the Great North, so choose the one that makes the most sense for your situation and try to comfort yourself that taxes the time comes. only once a year.
Let’s get in touch
If you need to file your personal tax return look no further. The accountants at WebTaxOnline can get your work done for you at very competitive rates. Call us or send an email today. Just get in touch with is and we’ll be sure to get back to you within 24 hours with the relevant information regarding your personal tax return.