Tax Tips for 2016
March 14 2016 Posted by Heather Maitland
It’s that time of year again, spring is coming and so is Tax Season. It is best to consult an accountant to get tax advice, but here are some things to consider:
Married couples as well as common-law partners can take advantage of several income tax benefits, as long you know how to work the numbers.
In the eyes of the Canada Revenue Agency (CRA), a couple is considered common law: after living together for 12 months; after becoming parents to a child by birth or adoption; if one partner takes custody and control of the other person’s child. Couples must inform the CRA of their marital status change by filling out form RC65.
Couples do not file joint tax returns in Canada. Each person files individually, but best to consider them at the same time to optimize deductions and streamline the process. Staying up to date on your taxes can help when applying for a loan, or a mortgage. Also, child tax benefit and GST credits are based on income filed, and can be delayed with later filings.
If you are self-employed, your accountant will want to reduce income to minimize taxes. For mortgage purposes, you may want to confirm how lenders review and qualify for a home purchase, call us for a free quote. We may want to inject before the 2015 is filed to assist you with your financing approval for a house purchase in 2016.
Here is a fantastic Canadian website to file your taxes: Simpletax.ca. It is free to use, there are no income limits or restrictions. It is best to use an accountant, but if your taxes are straight forward, the simpletax.ca site is a free solution.