Jenna Yuill, CPA, CGA

Back on the topic of Medical Expenses; did you know there are specific practitioners that you can deduct by province? I like this handy little chart https://www.canada.ca//authorized-medical-practitioners-pu

The Small Business Surprise! I see this a lot so I'm sharing a little secret that I share with all new small business clients: Taxes are expensive, yo.... I often hear from people who are shocked when the business that is doing "OK" socks them with a multi-thousand dollar tax bill. The short version is, if you're earning money to pay your personal expenses, then you likely have taxable income. "But what about all the "stuff" I get to write off?" While you can deduct expenses that you incur in the course of business, as well as a portion of your vehicle and residence for business use; it's not going to magically eliminate your tax bill (you can't spend more than you have!) Employees are spoiled; everything is taken at the source; CPP, EI, Tax; look at a T4 you have received in the past, you likely don't feel the thousands they took off because you never saw it. "What should I do?" I simply recommend staying in front of it; keep good records of your income and expenses; review what your tax rate is at different levels and put some cash aside. Don't get blindsided by CPP; you pay both the employee and employer portions on your income (after 3,500) That's 5.1% times 2 for 2019. (5.25) at the very least, try putting your net income into the payroll online deductions calculator from CRA and see what they take off. (you have to pay both sides of the CPP and none of the EI unless you elected to contribute) Even at a relatively low bracket; 25% of $40,000 is still $10,000 "this sounds complicated" I'm happy to share some tips and tricks on keeping records, estimating tax, tax planning, when to incorporate (Spoiler: it's AFTER you talk to an accountant ;)) I'm still taking clients for the 2019 tax season as well as new corporations. I'm also glad to offer a nudge in the right direction without obligation!

Local business alert; limitlesscareers.ca is offering an amazing service through this "shake up" If you've been displaced or are thinking about making some changes this is the place to go!

We've all heard it: Pay cash and don't pay the tax! Is there a cash price? This is the price if you don't need a receipt. This is the Underground Economy; Morals aside... Know the risks and the rules:... You need to declare your income, whether you get paid in cash, etransfer or other consideration (trade of services) Not declaring taxable income is ACTUAL FRAUD. Cash workers are often underinsured, putting YOU at risk by hiring them. The government can assess your LIFESTYLE if your INCOME doesn't jive with your apparent costs. Less exciting facts; Your declared income grows your RRSP space and your CPP contributions will help you in retirement. Technology is making it harder to "hide stuff"; it might just be a matter of time. You WANT income when you are trying to borrow for a house or a car. Taxpayers have the RIGHT to receive entitlements and to pay no more and no less than what is required by law Let's talk tax and see where you can LEGITIMATELY reduce your taxes by claiming everything. Let's NOT talk about cash jobs, mkay!? https://www.canada.ca//underground-economy-strategy-2018-2 https://www.canada.ca//tax-/about-underground-economy.html

Am I in business or am I just bored? The CRA definition: A business is an activity that you intend to carry on for profit and there is evidence to support that intention. If you sold things you had around your house to buy groceries (or simply to clean); likely not a business. Buying used items on marketplace and selling for a profit; more likely a business.... If you got really good at making bread and sold your extras through your local community groups; likely not a business; Devoting your kitchen and dining room to the craft and actively engaging in marketing activities; more likely a business. If you used fabric scraps around your house to sew masks and sold them off to help your community; likely not a business. If you purchased large amount of fabric to produce and sell mass quantities; likely a business * You don’t need to actually be profitable to have a business; just the expectation of being profitable (after costs). * You can have a business loss for the sake of income taxes if your business is legitimately a business. * You can’t run a business for the intention of generating a loss. * You can deduct the costs involved in selling stuff; the cost of materials/ingredients as well a portion of your home expenses for business use * Even illegal business is required to be report its income (sex trade, drug trade), but can also deduct costs for those business Hit me up - If you're not sure if you need to or should report income you made through the last year, and how it might impact your situation Resources: https://www.canada.ca//application-profit-test-carrying-on https://www.canada.ca//for/publications/t4002/t4002-1.html https://www.canada.ca//archived-adventure-concern-nature-t

**Medical Expense Tax Credit** If you incur costs related to your health, there may be tax benefits. This is a place where a little research can go a long way to keep money in your pockets. It's also an area that CRA reviews with a lot of scrutiny as it's often abused. ... Lets chat if you think you might be missing something. Here's some quick facts: There is a deductible you have to meet before the credit kicks in; 3% of your income up to $2,352; this means your average, healthy, middle income family will not reach this limit. This is a good thing, it means you're keeping well Your employee paid extended health and dental can be included, but life, dependent life, etc cant.; this should show on box 85 of your T4 You can claim any 12 month period that ends in the tax year; if you had high expenses from September to May, then you could choose to claim expenses September 1, 2018 to August 31, 2019 (in the tax year) Therapy animals are deductible under certain circumstances (not emotional support animals) Some credits only apply if you have the disability tax credit Cosmetic surgery/procedures are not a deduction unless approved by a doctor to correct a deformity JUST BECAUSE SOMEONE CLAIMED IT LAST YEAR AND IT "WENT THROUGH" DOESN'T MAKE IT ACCEPTED OR ACCEPTABLE!!! References: *Practitioners allowed by province:* https://www.canada.ca//authorized-medical-practitioners-pu *Common expenses you CANNOT claim* https://www.canada.ca///rc4065/medical-expenses-2016.html

I hope everyone is keeping safe! I continue to remain holed up in my home/office emerging only periodically for supplies and air. I'm fortunate in that I was set up for this already, so the biggest challenges for me have not been around learning to work from home. As of today (April 7th) most tax returns filed with refunds are being paid around the 20th of April; it's a great time to get that cash back into your own hands. It's also a critical time for people who have late f...ilings; unfiled years could result in difficulties getting urgent assistance. We can get you sorted out without any need for a face to face meeting. if you missed it: CRA has extended their tax filing deadlines Individuals have until June 1st to file their personal taxes, and the payment due date has been extended to September 1st. https://www.canada.ca///covid-19-filing-payment-dates.html

Tax Returns with refunds filed today are being deposited around the 15th of April; if you're in a cash crunch and generally get something back, it might be a good time quickly file. Let me know if I can help!

Home office Expenses - 101 YES you can (probably) claim a certain amount of the cost of working from home through COVID; Some points to consider: (as the rules stand today)... * your employment contract must state that you're required to maintain an office space where you PRIMARILY work (more than 50% of the time) * You need a signed T2200 form form your employer * Not everything is a deduction, some items (capital costs) need to be claimed over time, some just don't qualify depending on your situation. * you can only claim expenses you weren't reimbursed for, and things you actually paid for. * you and your spouse can only claim the same space once (or half of the space) * the work space must be dedicated work space * the value of the deduction is the tax you would have paid on that income; it is a DEDUCTION and not a CREDIT Some resources: https://www.canada.ca//line-229-other-employment-expenses. https://www.canada.ca//income-tax-folio-s4-f2-c2-business- We're in this together, please reach out if you would like to discuss your personal situation!

PSA: Child tax, GST and other benefits will get hold up if you haven't filed your 2019 taxes. There is no penalty for returns in a refund position. If you rely on child tax money, especially though these trying times, you want to get that done. ... Simple returns can often be completed over the phone and in a short amount of time. Please let me know if i can help!

2019 Tax season is officially coming to a close. I'm super grateful for the support I get from my local community, and really enjoy watching people's families grow and change, facing the same obstacles together as we navigate the same challenges. This job is more rewarding on a personal level than I ever expected; I feel like I'm doing my part in advocating financial literacy by demystifying the complicated and remaining approachable.... I pledge to stay human, and I thank everyone who appreciates my business model and gives me so much support.

June 1st!!! Today is the tax filing deadline for individuals. Due to excellent time management and help from my assistant Sonya Burdett, i have openings to do a few urgent returns. This matters most to:... People WITHOUT small business income (as your deadline is the 15th of June) People who might/likely OWE on their taxes (as there's no penalty on refunds) People who RELY on child tax / GST payments (as July payments won't go through if you haven't filed) HMU if i can help!

TAX DEADLINE ARE LOOMING Personal taxes need to be filed by June 1st unless you or your spouse has self employment income, then the deadline is June 15. Late filers would be subject to penalties based on their amounts owing. People in a refund position don't get penalized for late filing but it could delay your child tax, GST credit, and eligibility for other support measures. ... Tax amounts owing (not late paid installments!) have been deferred to September 1.