Tax Preparation Service(for residents in Quebec Province)

[montrealover]

It depends on your household income. Different families have various situation. Plus, if you lived in Quebec province at Dec 31st of last year, you can not claim your rent on Ontario side even you had lived in Ottawa for a few months on previous year. (this is called 'tax invasion').

Before filing the tax, one should ask him/herself a question:

Is getting money from the government your 'only goal' of tax filing?

Does it mean if you thought you might own a balance, you wouldn't file it this year anyways?

Do you realize any other benefits of tax filing? For instance, low income individuals/families are entitled to GST/QST; there are other strategies to give mid-to-high income families a tax break when they have paid too much tax on previous year, etc.

 

[montrealover]

last minute to avoid penalty

"Is it too late to file my tax?"

The fact is, if you have a balance owning (or at least you think you might have so), you'd better file it in order to avoid any penalty on it. The penalty is 5% of the owning plus compound interest of 1% per month on top of this.

Last year we filed a student who originally owned $320 balance on 2003, however, because of ignoring CRA's notice, eventually he had to pay back the government almost $800 (penalty + interest).

"How can I know if I have a balance owning?"

Check your household income of 2005. Did you have any Capital gain (e.g. sold a stock or mutual fund, or a property rather than your principal residence, etc.)? Were you considered self-employeed (contractor)? Did you have any rental income last year?

It is hard to gauge especially when it comes to a family tax filing because of other related factors (non-refundable tax credit): spousal amount, dependant amount, childcare benefit and tuition credit, etc.

That's why one should see a tax preparer before Apr.30th.

Exception:

Students who had no income on tax year 2005 can relax since no balance owning would incur. He/she can file it any time during the year. The drawback is he/she would get the refund later than others. But if you are first time filer and have not applied Individual Tax Number (ITN), you will have no choice other than wait.

P.S.

One can always file or make any ajustment on the previous years' tax return. But if you think you might get a refund, you would be better off file it at the current year since you would lose your interest (of the refund) when you let the money sit at the goverment. On top of this, Tax Act is amended every year so if you wait, you might lose the benefit on current tax year.

 

[cfcsichuan]

Does postdoctor fellowship sill need pay tax in 2006 according to new policy? Thanks.

 

[luzl]

以前看过一篇报道：一对夫妇到3家不同的报税公司填表，得到3种不同的退税结果。
报税公司要做的是帮顾客最大限度地拿回该得的Refund。同时，办理费用要透明。