- Hey, everybody!
Tax season is here and although this can be
one of the most overwhelming times of the year
it doesn't have to be as long as you are prepared.
In today's episode of Gunnarolla University
sponsored by H&R Block,
I'm gonna take you through the basics
of doing your taxes in Canada
and how you can file them easily from your own home.
Just a reminder that a YouTube video
does not constitute legal advice.
So if you have any questions
make sure to check out the website for the CRA
the Canada Revenue Agency
or speak to a tax professional life at H&R Block.
Class is in session.
So as you probably know taxes help to pay
for a wide variety of services
and they're one of the greatest necessities and choice
of living in a productive society.
As an individual doing your taxes
means filling out various forms namely
the T1 General Income Tax and Benefit Return.
If you run a corporation there are other forms to file
but in this video we're focusing
on your personal income taxes.
Even if you didn't receive income last year
you should still file a return
to get the benefits and credits you're entitled to,
after all it's money back in your pocket.
And to think of all the things you could do with the return.
You could put it toward a vacation.
You could go to a fancy restaurant every day for a week.
Update your wardrobe.
Buy gifts for your friends.
Pikachu onesie.
Or you could put it in the bank
and be responsible with your money.
The deadline for most Canadians to file their taxes
is April 30th.
If you're self-employed
your taxes are due no later than June 15th,
but if you owe any money
it still has to be paid by April 30th.
April 30th, put it in your calendars
because if you owe any money
to the government and you're late
there is a late filing fee.
5% of the balance owing plus 1% of the balance owing
for each month up to a maximum of 12 months.
If you've repeatedly filed late the penalties can increase
so it's in your best interest to make sure you file on time.
I'm talking to you procrastinators.
So clearly now is the best time
to start thinking about your taxes.
You may decide to file your taxes by yourself
if your employment situation is pretty straightforward,
you can't afford, don't have access to an accountant
or maybe you just want full control over the entire process
being able to file wherever and whenever you want
on the device of your choice.
For me I'm choosing to file by myself online this year
because when you're a freelancer
there's a lot of paperwork to sift through
and I want to take my time making sure I understand
every step of the process.
You can still pick up paper tax forms
at any Canada post office or download them in PDF form.
However most Canadians choose to submit online
because it's faster
and they can generally get their refund sooner,
especially if they've signed up for direct deposit.
If you've seen a T1 you know it's not a very friendly form.
So a service like H&R Block online tax service
helps to make sense of the process and provide support
every step of the way.
Let's see how it works.
When you log on to hrblock.ca
you'll find three choices for doing your taxes.
Basic filing is free, accurate, safe and secure.
You just need to follow the steps
and provide all the necessary information.
If you're looking for expanded options
like unlimited tech support,
the option to import and compare past returns
and a visual summary of your taxes
as you're filling them out
the assistance plan is for you.
And if you want all that plus audit protection,
priority phone support and to store your taxes in the cloud
choose the protection plan.
So before you start filling your taxes
you will need the following.
Your tax information slips like a T4, T4A or T3.
Receipts and forms for claiming deductions on tax credits
and a record of your income and expenses
if you're self-employed.
All income from every source has to be reported,
although there are a few exceptions like lottery winnings,
gifts and inheritance
and certain scholarships and bursaries.
If you work in the service industry for example
you'll need to report any tips you've made,
so make sure to keep a record.
So once you have all of your paperwork in order
it's time to file your taxes.
Filling out your taxes of H&R Block online is simple.
Start by filling out your personal information,
your mailing address, your residence
and family and marital status.
Once you've entered your basic information
follow the steps to fill out your forms.
As long as you've gathered
all the necessary documents beforehand
this process is easy.
If you have any questions at any point
you can click help for more info.
The H&R Block website is a great resource
for learning more about what the different forms mean
and how to maximize your return.
Once you've filled everything out
H&R Block will let you know if you've missed anything
and if you'll get a refund amount
or it will let you know if you have an amount owing.
For further advice and recommendations
you can purchase an expert review
which is a 20 to 40 minute call with the tax experts
and you don't even have to leave your home.
When you're ready to file
you can do it with the click of a button.
Wrong button.
There we go.
The CRA mandates
that you keep all of your income tax records,
that includes all of your paperwork and receipts
for up to six years.
It's important to keep these things handy
in case you get audited somewhere down the line.
So collect them and put them in a safe place.
So there you have it,
a very brief overview of how to file your taxes in Canada.
The forms can be overwhelming
and if you're self-employed the amount of paperwork
you have to deal with can be daunting.
But as long as you make an effort
to stay organized throughout the year
and you use a service like H&R Block,
that makes the entire process much more user-friendly.
Tax time does not need to be terrible.
Terri...
Terrible.
Super big thanks to H&R Block for sponsoring this video.
If you'd like to know more about the services
that they offer online and in-person
visit the link below.
In the comments below
let me know which topics you'd like to cover
in an upcoming episode of Gunnarolla University.
I'll see you next time.
A la prochaine.