Tax
Department Correspondence -
|
|
|
___ |
Notices of Assessment or Re-Assessement ( 2021 & 2022 returns ) |
|
___ |
Instalment Notices & Statements ( 2023 & 2024 ) |
Canadian Income
|
||
|
___ |
T4 slips ( salaries, wages, commissions ) & Last Pay Statement for 2023 |
|
|
___ |
T4A slips ( CPP, OAS, CERB, pensions and other ) |
|
|
___ |
T4E slips ( employment insurance ) |
|
|
___ |
T5 / T600 slips ( interest, dividend income ) |
|
|
___ |
T3 slips / Transaction & Capital Gains Summaries ( mutual funds, trusts, estates ) |
|
|
___ |
T4RSP / T4RIF ( retirement income, withdrawals ) |
|
|
___ |
T5007 slips ( WSIB benefits, social assistance payments ) |
|
|
___ |
T5008 slips ( stocks & security transactions ) |
|
|
___ |
T5013 slips ( limited partnerships ) |
|
|
___ |
Rental Income and Expenses |
|
|
___ |
Self-Employed Business Income & Expenses |
|
Foreign Income - Filing Tips
|
|
|
___ |
Foreign Pensions and Social Security |
|
___ |
Investment Income |
|
___ |
Rental Income |
Deductions and Credits
|
||
|
___ |
RRSP Contributions ( 2023 and Jan.1–Feb 29, 2024 tax receipts ) |
|
|
___ |
Home Buyer Plan Statements ( details & receipts ) |
|
|
___ |
Receipts for Union Dues, Professional Fees |
|
|
___ |
Child Care receipts ( with name, address and SIN of child care provider ) |
|
|
___ |
Moving Expenses ( details & receipts ) |
|
|
___ |
Support Payments ( details & receipts ) |
|
|
___ |
Interest Paid on Investment Loans ( statements or receipts ) |
|
|
___ |
Employment Expenses ( details & completed T2200 form ) |
|
Other Credits
|
|
|
___ |
Tuition Receipts ( self & dependents ) |
|
___ |
Student Loan Interest Statements |
|
___ |
Charitable Donation Receipts ( 2023 & prior ) |
|
___ |
Political Contribution Receipts |
|
___ |
Medical Expense Receipts |
|
___ |
Rent Receipts / Property Tax Bills & Statements |
- Your Notice of Assessment from last year will
allow us to verify your RRSP deduction limit, undeducted
RRSP contributions, Home Buyer Plan balance and minimum payment, undeducted Tuition and Education Credits, and Capital Loss
carry-forward balances, when preparing your current tax return.
- The latest Instalment Notice and remittance form ( mailed
out in February ) will include your Instalment Summary on a second page,
confirming the amounts that were credited to your account last year. It is this
second page which I need.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
Please
DO NOT separate the copies of your information slips (ie copies 2 and 3
of your T4). I will do that when assembling your return; placing one copy in our
file and placing one in your copy of the return.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
- Canadians
residents must report income from all sources, both inside and outside Canada.
The income (and any foreign tax deducted) is to be converted into Canadian
dollars using the exchange rate in effect on the day the income was received.
Where this daily calculation is not practical, the CRA provides an average
exchange rate which can be used for the year.
2021
Average Exchange Rates: $US = 1.2535 ;
E.M.U. Euro = 1.4828 ; British Pound = 1.7246
2022
Average Exchange Rates: $US = 1.3013 ;
E.M.U. Euro = 1.3696 ; British Pound = 1.6076
2023
Average Exchange Rates: $US = 1.3497 ;
E.M.U. Euro = 1.4597 ; British Pound = 1.6784
- If you paid taxes to a
foreign country, or had taxes deducted from the income, you must report the
income before taxes, and then you may be eligible for a foreign tax credit when
I calculate your federal and provincial taxes payable.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
Keep all
the year-end slips and statements you receive. The reporting of mutual fund transactions is
probably the single most misunderstood item I deal with when preparing
personal tax returns. These investments produce two distinct types of taxable
transactions.
- The first is income distributions to investors (unit holders) which are
typically reinvested in additional units of that fund. The taxable income associated with these distributions are reported on
the T3 slips which are distributed by March 31st of the following year.
- The second type of transaction which has to be reported results from
redemptions (and some transfers) of units during the year. This can be in the
form of pre-authorized redemptions, (ie automatic
monthly withdrawals), individual cash redemptions, or transfers between funds.
For tax purposes, transfers between funds are usually considered the sale or
redemption of one fund, and the separate purchase of the second fund. In the case of redemptions and transfers, the information IS
NOT INCLUDED on the T3 slip. It is summarized on the Annual Transaction
or Capital Gains Summary which is mailed out early each year, quite often
separately from the T3 slip.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
- Gains or losses from the sale of stocks and securities are
NOT reported on the T3 and T5 slips. I have to calculate the gain or
loss by comparing the net sale proceeds to the adjusted cost base of the
investment. Some investment firms will produce a Capital Gains and Loss Summary
for the year. In other cases, I will need to have the original purchase and
sale confirmations.
- Income from stocks and securities (usually dividends) will be reported on T5
or T3 slips which are mailed out by the end of February and March each year.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
- While individuals
do not actually pay income tax on WSIB benefits and social assistance payments,
they must report the income on their returns, as it does affect the calculation
of many tax credits.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
- The
deadline for making 2023 contributions to your RRSP is February 29, 2024, and
the deadline for 2024 contributions will be March 01, 2025. You will likely
receive separate receipts for those contributions made in calendar 2023, and
for those made from January 1 – February 29, 2024. All contributions for
both periods are to be reported on your 2023 tax return, even if you only
intend to deduct a portion against your 2023 income.
- Your 2023 RRSP deduction limit, and the total of any undeducted
contributions from prior years being carried-forward, can be found on your 2022 Notice of Assessment or by using
the CRA My Account online service [ My
Account ].
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]
- Childcare
receipts should include the name, address and telephone number of the childcare
provider. In the case of an individual, the receipt must also show their Social
Insurance Number, and should be signed and dated.
- The childcare deduction is primarily for expenses which were incurred to
allow a taxpayer or their spouse to earn income from employment or
self-employment, or to attend school. The parent with the lower net income must
make the claim.
- The cost of summer camps and sports schools may also qualify. Fees for
ongoing sports and recreational programs such as soccer and baseball DO NOT
qualify as Childcare Expenses.
[ Back to Checklist ] / [ Tips Index ] / [
Top of Page ]