How to File for Canadian Income Tax Returns
In Canada, filing your income tax return is a relatively straightforward process and almost anyone with a basic understanding of mathematics can complete the task. That said, it is important to read through your Income tax and Benefit Package carefully to make sure you cover all of the sections that apply to you personally. For people who are truly terrified of the process, it's not a bad idea to consider enlisting some professional help.
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Things You'll Need
- Calculator
- Pencil
- Tax package from Canada Revenue Agency
- Income details
- Receipts for deductions
Instructions
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Ensure you have the correct Income Tax and Benefit Package from the Canada Revenue Agency for the province in which you resided for the tax year. The general tax package, which is suitable for all Canadian taxpayers filing personal returns, can be ordered online, by phone or they can be picked up at any Canada Post outlet or Service Canada office. You must also have a Social Insurance Number.
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Gather all relevant information regarding your income verification. Income can be varied so be sure to consider all sources, such as capital gains generated through the sale of secondary properties. If you received employment insurance benefits, you'll need a T4E form, while regular employment income will be recorded on a T4 slip, as will Canada Pension Plan contributions and employment insurance premiums. For self-employed individuals it's important to have copies of all invoices showing income and well-kept records to back up your income statement. Likewise, all expense deductions must be backed up with receipts.
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Gather all the records relevant to taking deductions. Retirement savings plan contributions or Registered Education Savings Plan dollars saved are important to remember for deduction purposes. Starting in 2009, a Tax Free Savings Account option became available, so consider that as well.
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Complete your forms and file your return. This can be done over the phone, Internet or by mail following the numbers and addresses on your package. It is recommended that you keep copies of your records if you intend to mail your return. For questions about your return, contact the Canada Revenue Agency at 800-959-8281. Usually for the months of March and April, when the tax crunch is in full force, there are extended hours and additional agents to speak with.
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Tips & Warnings
Use a pencil when filling in numbers so you can easily correct any mistakes. Be sure to file prior to the April 30 deadline to avoid penalties should you owe taxes.
References
- Photo Credit A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com
