Navigating the Canada Tax Preparation Checklist 2023

An individual or organization that receives revenue in Canada must file tax returns with the Canada Revenue Agency (CRA). All taxable personal income tax credits are included in the Canadian income tax year, which runs from January to December.

Each person oversees submitting their tax return. One can file a tax return with a tax preparation service from Global FPO. Go through the following checklist for tax preparation:

Individual Details

• To begin with, Global FPO will require the following items to complete a tax return:
• You, your partner, and any dependents' Social Insurance Numbers (if applicable)
• the birth dates of familial relatives
• Your spouse and any children for whom you are collecting credits, like the Canada Caregiver Amount, one of several to which you may be entitled, should be deducted from your net income.
• The total amount paid in installments for CRA Notice of Assessments on the previous year's return.
• Your access key for NETFILE

Tax Preparation Checklist to support your claim Credits and Expenses

Your taxable income is decreased via deductions, resulting in a lower tax bill. Your records must be submitted to a bookkeeper for this, by the way. Documentation is essential for making deduction claims; although it may take some effort, it can be worthwhile.

• Contributions to RRSPs T2202 Forms (Tuition receipts)
• Receipts for union and professional dues are excluded from your T4 slip.
• childcare costs (SIN, name, and address of caregiver)
• shifting costs
• Medical costs (summary from the pharmacy)
• employment cost
• Office costs at home (complete list)
• Amount of rent or property taxes paid each year (must provide the name and address of the landlord).
• Slips T2201 (Disability deductions – self or dependents)
• Political contributions and charity donations
• Repayment statement for student loans
• Support contributions that qualify.
• various deductions (carrying charges, interest)
• adoption costs (if applicable)
• invoices for school or office materials (Teachers and early childhood educators)

Work and Retirement Checklist:

• Employee profit split slips and earned income (T4) (T4PS)
• slip for employment insurance (T4E)
• Income slip for pensions, retirees, and annuities (T4A)
• CPP (T4AP) and Old Age Security (T4A-OAS) slips
• slips from the government for workers' severance or social assistance (T5007)
• moving costs, union dues, and professional fees

Rental and business income Checklist:

• total business revenues and costs
• total rental earnings and costs
• Office costs at home
• Travel and auto spending logbook and accompanying receipts.
• information about capital acquisitions (computers, office equipment)

Investments Checklist:

• receipts for RRSP contributions, RRSP income, and RRIF income
• slips of income from investments (T5)
• Additional investment income tax forms Partnerships (T3) and Trusts (T5013)
• Gains or losses on investments in assets (investment statements or T5008)
• paperwork about the purchase of the real estate

Tax Credits

Healthcare tax credit (for surrogacy and other expenses)

The amount spent on family planning clinics and donation banks in Canada to acquire donor sperm or ova to permit the conception of a child by the person, the individual's married or common-law companion, or a surrogate mother on the individual's behalf has been added to the list of eligible medical costs.

Tax credit for first-time house buyers

For an eligible house bought after December 31, 2021, the amount utilized to compute the first-time homebuyers' tax credit has risen to $10,000.

Tax credit for homes with accessibility

The home adaptability tax credit now has a $20,000 yearly spending cap.

Tax credit for bettering air quality

You could claim a refundable tax credit equal to 25% of your overall vent expenses to enhance ventilation or air quality at your business premises if you were self-employed or a member of a partnership in 2022.

Disability tax credit

A person with type 1 diabetes is regarded to have satisfied the two times and 14 hours a week criteria for life-sustaining treatment for tax years beginning in 2021 and later.

Other Information/Documents

Maintaining tax records from earlier years is also crucial. Some of this information might be required when reporting for the current year. For instance:

• Amounts for the CRA's Notice of Assessment for Last Year's Tuition
• Limitation on RRSP deductions and unused funds
• Carryover loss amounts
• Additional carryover amounts (business-use-of-home, donations, etc.)
• CRA's other communications

How much time does a Canadian tax return require?

Depending on how you filed your tax return, processing dates may vary. The Canada Revenue Agency aims to process the majority of digitally filed tax returns in 2-4 weeks and paper-filed reports in 8 weeks for tax returns online.

Inside this time frame, you can anticipate receiving your tax refund. This timetable only applies to tax returns submitted on time or earlier. It could take up to 16 weeks to process a non-resident individual income tax return if you dwell outside Canada.

Returns chosen for a thorough analysis can require more time. You will receive your refund quicker if you choose direct deposit instead of mail-in checks.

How can I obtain a copy of my Canadian tax return?

You can download copies of your assessment notice and tax slips from prior years from the CRA site if you require them. You can access your My Account or utilize the CRA mobile app to view it.

How you obtain copies of a prior year's tax return depends on how you submitted it. You should have access to PDFs via the Global FPO’s tax preparation service you hired. To obtain a copy of your tax return, if you used a preparatory service or an account, get in touch with them.

Also Read: Confused About Tax Preparation? Let Us Clear Things Up For You!

Conclusion

When mailing a printed copy, you must enclose any supporting paperwork with your tax return, including forms and documentation. For some provincial credits, you may also require additional sums based on the province in which you reside.

Reach out to Global FPO if you still feel stressed, attempting to ensure you have it all. We want to ensure you receive all tax credits and deductions to which you are eligible, lessen your tax liability, and support you as you navigate the challenging tax season. Please get in touch with us.