Tuition tax credits are non-refundable credits, meaning that they will work toward lowering the amount of taxes you owe but they will not be contributed to any refunds. This means that they will help keep your owing taxes low but will not increase the amount you get back on your taxes. Sometimes, however, it works out that the tuition you are claiming exceeds the amount you owe. So what happens to the rest of the tuition tax credit? Does it disappear into obscurity? It doesn’t and the good news is that you can carry forward or transfer any unused credits! ...Read More
In Canada, every person must file income tax and benefit returns each year. The due date for having your taxes filed is April 30th - but if you’re self-employed you have until June 15th. So that means if you are filing your 2021 taxes, they will be due April 30th, 2022, and June 15th, 2022, respectively. However, just because you have until the end of April to file your taxes doesn’t mean you have to wait until the last minute! The earliest date that the CRA (Canada Revenue Agency) will start accepting electronically filed tax returns is usually around February ...Read More
Do you ever find that when tax lingo starts flying around at tax time, most of it goes right over your head? Filing and paying taxes involves more than reporting your income to the government. There are a lot of nuances to consider when it comes to preparing your taxes properly as well as ensuring you are taking advantage of eligible credits and deductions. In order to manage your finances in a more tax-friendly way, it’s helpful to know what many of these terms mean. Here is a list, from A to Z, of some common tax terms explained: After-Tax ...Read More
They say that nothing is certain except for death and taxes. However, when dealing with both at the same time, figuring out what to do can create a sense of uncertainty. Finding closure is an important part of the grieving process and, when a loved one passing away, this often includes tying up loose ends and settling their estate. A part of settling a deceased individual’s estate is ensuring that their taxes are properly filed one last time. If you are responsible for filing taxes for someone who has passed away, it’s important to ensure that the process is completed ...Read More
Have you reached a point with your small business where handling your finances is becoming difficult and stressful? When you’re passionate about what you are doing, starting a business is easy. Running it, however, involves many moving parts. And if you don’t have the experience or know-how, the challenge can quickly turn to frustration and even negatively affect your small business’s performance. So what do you do? The short answer is to hire an accountant who can manage all the financial aspects of your small business. There are many benefits to hiring an accountant and there are a variety of ...Read More
Did you know that you can claim medical expenses on your income tax? In Canada, you can take advantage of the Medical Expense Tax Credit (METC). This is a non-refundable tax credit that allows you to claim eligible medical expenses for yourself, your spouse or your dependents. The process isn’t as straightforward as simply plugging in your numbers, however. First, you need to determine if your expenses are eligible and if you meet the cost threshold to claim them. It can be confusing but, here at Liu & Associates, we want to help you understand the process. Keep reading to ...Read More
Whatever your situation in life, it may be possible that you do not work and earn an income. Perhaps you lost your job or chose to stay home and care for your children. No matter your situation, you’re probably wondering whether or not you have to file your taxes at all. While federals laws do not require you to file a tax return if you have no income to claim, it’s important to determine if there are other situations that may require you to. The last thing you want is to face an audit or pay the interest and fees ...Read More
Last year was an interesting one when it came to employment norms. People accustomed to commuting to an office or workplace every day were offered the opportunity to work from home. Likewise, many people also decided to start their own businesses at home. If you fall into either of these categories, your situation drastically changes the way in which you will file your 2020 taxes. Instead of plugging in your T4’s and calling it a day, you now have to consider your home office expenses and what you can claim as deductions on your taxes. The process is fairly straightforward ...Read More
The COVID-19 pandemic certainly threw the way we work into a tailspin as more and more employees found themselves working from home. Thankfully, many individuals were able to take advantage of this situation and continue working in a safe environment. However, this massive shift will change the way in which 2020 taxes will be filed this year. Mainly, individuals are now eligible to claim home office expenses if they were able to work from home. If you are one of these people, you are probably wondering what exactly you need to provide to the CRA to make this happen. Depending ...Read More
2020 proved to be an interesting and evolving time as more and more employees worked from home. When you are no longer working in your company’s workspace, the way in which your file your taxes changes drastically. If you worked from home during 2020, you may be eligible to make work-related claims and take advantage of additional deductibles on your taxes. To understand whether you are eligible to claim your home offices expenses, and what you can claim on your 2020 taxes, keep reading our tax guide to your first year working from home: Who Can Claim Home Office Expenses? ...Read More
