How to file taxes
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This document provides information about filing taxes in Canada. It begins with introducing the workshop objectives, which are to learn about the Canadian tax system, the tax filing process, and how to get help with taxes. Various tax-related terms are defined. The document then discusses the different types of taxes Canadians pay, including income, sales, and property taxes. It explains why taxes are paid and what common benefits are funded by taxes, such as social services, healthcare, education, and public services. The document outlines the tax filing process and how to determine your taxable income and tax bracket. It provides details on getting tax forms, filing options, deadlines, and setting up direct deposit. Tax credits are described and information given on where
How to file taxes
- 1. How To File Taxes
- 2. Welcome Everyone! Let’s introduce ourselves to each other! • What is your name? • What do you think of if you hear the word “tax”? • Tell us one thing you want to learn from this workshop.
- 3. Content Objectives: At this workshop, you will learn: about the Canadian tax system; about the process of filing a tax return; and how to ask for help or find more information about income tax refund.
- 4. Vocabulary for Tax • a refund • to file a tax return • CRA • to levy tax • taxable • T4 or T4A • slips • tax revenue • deductions • tax credits • 2014 tax year
- 5. Types of Taxes Taxes you pay in Canada • Sales Taxes • Income Taxes • Property Taxes Provincial (PST) & Federal (GST) Provincial & Federal Municipal
- 6. Discussion 1. What kind of taxes do people pay in your home country? 2. Who pays the taxes? 3. How do people pay taxes in your country? What happens if they don’t pay taxes?
- 7. Why do we pay taxes in Canada? Federal Provincial Municipal Clipart Source: https://openclipart.org
- 8. Types of Common Benefits Source: http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/lrn-smpl-eng.html Ottawa Photo by Justin Swan https://www.flickr.com/photos/118304891@N02/13700235425/ shared under CC-BY-SA Social Services: Old Age Security, Employment Insurance, Canada Child Tax Benefit, Universal Child Care Benefit, Working Income Tax Benefit Public Services: roads, bridges, garbage collection, recycling, snow removal, parks, libraries and playgrounds Healthcare Services: ambulance, healthcare, and hospital Educational Services: schools, daycares, libraries
- 9. How much income tax do we pay? • Taxable Income =Total amount of income - deductible expenses Examples: • Employment • Investments • Rental property • EI • CPP Examples: • Childcare expenses • Moving costs due to job relocation • Medical expenses • RRSP Contribution Source: http://www.wikihow.com/Calculate-Federal-Taxes-in-Canada http://turbotax.intuit.ca/tax-resources/tax-deductions/personal-income-tax-deductions-in-canada.jsp
- 10. How much income tax do we pay? (cont’d) • Tax Bracket Manitoba Income Tax Brackets & Rates (2014 Tax Year) Tax Brackets Income Tax Rates Up to $31,000 10.80 % $ 31,001 - $67,000 12.75 % $ 67,001 – and Over 17.40 % Source: http://www.tax-services.ca/manitoba-tax-brackets-mb-income-tax-rates/
- 11. How much income tax do we pay? (cont’d) • Tax Bracket Federal Tax Brackets & Rates (2014 Tax Year) Tax Brackets Income Tax Rates Up to $43,953 15% $ 43,954 – $87,907 22 % $87,908 - $136,270 26 % Over $136,270 29 % Source: http://www.tax-services.ca/canadian-tax-brackets-2014-income-tax-rates/
- 12. How much income tax do we pay? (cont’d) • Tax Bracket MB Tax combined with Federal Income Tax (2014 Tax Year) Taxable Income Income Tax Rates Up to $43,561 26 % $ 43,562 - $87,123 34 % $ 87,124 - $135,054 43.40 % $135,055 – and Over 46.40 % Source: http://www.tax-services.ca/manitoba-tax-brackets-mb-income-tax-rates/
- 13. Filing a Tax Return • Who needs to file a tax return? “Anyone who has a residential tie to Canada for tax and benefits purposes” • Why? Make an adjustment between the estimated income tax that was already withdrawn from your paycheque in the tax year and the total amount of income tax you need to pay
- 14. Filing a Tax Return • How? Applying online Applying on paper Hiring an accountant Baby photo http://www.publicdomainpictures.net/ Shared under CC Paper work photo by Phil Parker: http://www.flickr.com/photos/45131642@N00/5508313347/ Shared under CC-BY Cat photo by Found Animals Foundation https://www.flickr.com/photos/foundanimalsfoundation/8055190879/ Shared under CC-BY
- 15. Filing a Tax Return • By When? Midnight April 30, 2015 Clock photo by Jonathan Bliss https://www.flickr.com/photos/jonathan_bliss/3402567108/ Shared under CC-BY-SA
- 16. Filing a Tax Return • How often? Calendar Photo by Caillum Smith https://www.flickr.com/photos/woodypine/15175622674/ shared under CC-BY Once a year
- 17. How to get a tax package 1. Download Online Go to http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html and click your own province. 2. Order Online Go to http://www.cra-arc.gc.ca/cgi-bin/puborder.cgi?lang=en and fill out necessary forms. 3. Order by Phone Call 1-800-959-8281 (from Canada and the USA) Call 1-613-940-8495 (from outside of Canada and the USA) 4. Pick up in Person Search your nearest Service Canada office at http://www.servicecanada.gc.ca/cgi-bin/sc-srch.cgi?app=hme&ln=eng Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/gttng/menu-eng.html
- 18. Process of Filing a Tax Return Online Step 1: Get prepared • Collect necessary information and records such as receipts and TF slips • Set up an online account with RCA Step 2: Submit your information • Get certified software • Enter your information using the software Step 3: Send your return and receive a refund (or make payments) • Keep your CRA confirmation number • Set up your online direct deposit account Source: http://www.cra-arc.gc.ca/gncy/t1gtrdy/menu-eng.html
- 19. Step 1: Getting prepared • Things you need to collect: T4 slips Receipts Copy of tax return from previous year
- 20. Step 1: Getting prepared • Create your online account with the CRA. Go to http://www.cra-arc.gc.ca/esrvc- srvce/tx/psssrvcs/gtnln/nfgrphc1-eng.pdf • Check out the tax credits that you might be entitled to.
- 21. Step 2: Submit your information • Get a certified tax software for free. http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/netfile- impotnet/crtfdsftwr/menu-eng.html • Purchase a certified tax software
- 22. Step 3: Get refund or make payment • Keep your CRA confirmation number • Set up your online direct deposit account
- 23. How to set up direct deposit 1. Apply online Set up your direct deposit through your RCA account: http://www.cra-arc.gc.ca/esrvc- srvce/tx/ndvdls/myccnt/menu-eng.html 2. By mail Fill out an enrollment form at http://www.tpsgc- pwgsc.gc.ca/recgen/dd/form/can-eng.html 3. By Phone Call 1-800-959-8281 Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/drct_dpst-eng.html
- 24. Things to keep in mind • Tax situation varies person to person • Look for tax credits you might be eligible to • Keep the CRA informed of your latest contact information
- 25. Tax Credits: • First-time donor’s super credit • Children’s fitness tax credit • Family caregiver tax credit • Children’s art tax credit Source: http://www.canada.ca/en/campaign/taxsavings/index.html
- 26. Tax Credits: • First-time home buyers’ tax credit • Pension income splitting • Volunteer firefighter tax credit Source: http://www.canada.ca/en/campaign/taxsavings/index.html
- 27. Tax Credits: • Tradesperson’s tools deduction • Family tax cut • Universal child care benefit Source: http://www.canada.ca/en/campaign/taxsavings/index.html
- 28. Listening: • Videos: Tax savings working for you! http://www.cra-arc.gc.ca/vdgllry/wtchds/menu- eng.html?clp=wtchds/chldrnftnss14-eng&fmt=mp4
- 29. Listening: Children’s Fitness Tax Credit 1. Up to how much tax credit can Susie’s parents receive? 2. How much do Susie’s parents need to spend to receive the full credit? 3. What can be included in the claim? 4. Up to what age are children eligible for this tax credit? 5. What else does Ella qualify for besides the children’s fitness tax credit? 6. What are the conditions of the programs that qualify for this tax credit? 7. Do the parents need to include the receipts in their tax documents?
- 30. Children’s Fitness Tax Credit 1. Up to how much tax credit can Susie’s parents receive for Susie? 2. How much do Susie’s parents need to spend to receive the full credit? 3. What can be included in the claim? A: $1,000 or more A: registrations, membership fees A: up to $150
- 31. Children’s Fitness Tax Credit 4. Up to what age are children eligible for this tax credit? 5. What else does Ella qualify for besides the children’s fitness tax credit? A: They must be under 16 at the beginning of the year A: Disability Tax Credit
- 32. Children’s Fitness Tax Credit 6. What are the conditions of the programs that qualify for this tax credit? 7. Do the parents need to include the receipts in their tax documents? A: The programs have to last at least 5 consecutive days. The programs must be supervised. The programs must include physical activities. A: No, they don’t. They just need to keep them in case of an audit from CRA.
- 33. Learn more about each tax credit Go to http://www.cra-arc.gc.ca/vdgllry/menu-eng.html 1. Choose Ads and videos: Tax savings ... working for you! 2. Choose Videos.
- 34. Provincial Tax Credits • Go to http://www.gov.mb.ca/finance/pcredits.html
- 35. How to ask for help • Tax Information Phone Services (TIPS) Info-Tax (Press 1- 4 - 2) 1-800-267-6999 http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html • Talking to an Agent http://www.cra-arc.gc.ca/cntct/hdsk-nd- eng.html Phone clipart:
- 36. How to ask for help • Community Volunteer Income Tax Program (CVITP) http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/nd-eng.html
- 37. Follow-up Activity: How to ask for help Task: How to Get the Tax Information through the TIPS 1. What do you want to know more about? Choose the topic that is of interest from the Info-Tax list. 2. Call TIPS and listen to the automated Tax Information. 3. Write down what you have learnt. Source: http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html
- 38. Do you want to know more? • Canada Revenue Agency - Resources for Newcomers (There are accessible video resources available for newcomers.) http://www.cra-arc.gc.ca/newcomers/ • Learning more about the federal tax credits http://www.canada.ca/en/campaign/taxsavings/index.html • How to open an online account with CRA http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/gtnln/nfgrphc1-eng.pdf • Video recorded webinar for individuals and families http://www.cra-arc.gc.ca/vdgllry/menu-eng.html • Learning more about Taxes (There is a self-study course available.) http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/menu-eng.html
- 39. If you need help…. • Tax Information Phone Services (TIPS) http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html • Phone Inquiries http://www.cra-arc.gc.ca/cntct/hdsk-nd-eng.html • Community Volunteer Income Tax Program (CVITP) http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/nd-eng.html
- 40. Questions
- 41. Thank you!
Editor's Notes
- #2: Welcome to this 4 week course!