Tax season is upon us once again, and as a business owner, you want to make sure that you are prepared to take advantage of every tax credit or deduction that you may be eligible for. In this guide, we will provide you with all the information you need to complete your taxes efficiently and correctly the first time.
Why You Need to Be Prepared at Tax Time
Preparing for tax time is essential because it helps ensure that you file your taxes accurately and on time, which can help you avoid penalties and interest charges. Being organized and keeping track of your receipts and documentation throughout the year will make the process less stressful and time-consuming.
How to Be Prepared for Tax Time
To prepare for tax time, you will need to gather all the necessary documentation and receipts. Below is a list of the documents you will need to complete your taxes efficiently and correctly.
Gather Your Slips
Gather the following slips for your business:
- T4 slips (Employment income)
- Employment insurance benefits (T4E)
- Interest, dividends, mutual funds (T3, T5, T5008)
- Tuition / education receipts (T2202A)
- Workers’ compensation benefits (T5007)
- Social assistance payments (T5007)
- Universal Child Care Benefit (RC62)
- Old Age Security and CPP benefits (T4A-OAS, T4AP)
- Other pensions and annuities (T4A)
- All other information slips
Collect Your Receipts
Collect the following receipts for your business:
- RRSP contribution receipts
- Support for a child, spouse or common-law partner
- Professional or union dues
- Transit pass receipts
- Tool expenses (Tradespersons & apprentice mechanics)
- Office – in-home expenses
- Charitable donations
- Political contributions
- Medical expenses
- Child care expenses
- Adoption expenses
- Children’s arts and sports programs
- Interest paid on student loans
- Moving expenses
- Carrying charges and interest expenses
- Exams for professional certification
Gather Other Documentation
Gather the following documentation for your business:
- Notice of Assessment/Reassessment
- Canada Revenue Agency correspondence
- Rental income and expense receipts
- Sale or deemed sale of stocks, bonds or real estate
- Automobile / Travel logbook and expenses
- Business, farm or fishing income/expenses
- Disability Tax Credit Certificate
- Declaration of Conditions of Employment (T2200)
- Search and Rescue volunteers certification
- Volunteer Firefighters certification
- Northern residents deductions receipts
- Custody Arrangement documentation
Now that you have gathered all the necessary documentation, it's time to get your taxes done. If you're feeling overwhelmed or don't have the time to complete your taxes, contact Censea Accounting & Business Solutions today! We are here to help you navigate the tax season and take advantage of every tax credit or deduction that you may be eligible for. Don't wait until the last minute, contact us today and let us help you get prepared for tax season!