All You Need to Know About Personal Taxes
Doing your personal taxes can be daunting, especially if you’re a first-timer. But there are no ways around it. As a taxpayer, you're expected to declare your income taxes and keep your data up-to-date with the Canada Revenue Agency. Hiring a tax accountant in Mississauga is the best way to avoid mistakes and ensure a smoother process. A tax professional can eliminate the guesswork on filing personal taxes, particularly when it comes to understanding and completing your T1 form.
What is T1?
The Income Tax and Benefit Return or T1 summarizes your paid income taxes to the CRA. As a Canadian, you must complete and submit this form to declare all the income you have generated for a particular calendar year. Think of it as the summary of all your income tax forms and other information you must file.
How important is the T1 form?
The T1 form is essential when applying for services and benefits such as the GST/HST refundable tax credits and the Canada Child benefit. It may also be necessary to prove your general income when applying for a mortgage or major credit.
You must file your T1 form annually. Partnerships and sole proprietors need to file it, too. For corporations, a tax accountant in Mississauga can help you with the T2 form to declare your corporate income.
Get your T1 form online.
The simplest way to obtain the T1 form is online. Your CRA My Account should list your T1 for the year and the previous eleven years you have filed under ‘tax returns view.’ Contact the CRA to get a copy if you need to look for older data. You may call them at 1-800959-8281.
It is possible to complete a T1 tax return through certified tax calculators and a tax accountant in Mississauga. Your tax forms will be ready for the required calendar year. For instance, the 2022 tax year requires the 2022 T1 form.
Calculating your income
You can calculate your taxable income by looking into these areas:
Gross income or revenue – This is the sum of all salaries, wages, interest payments, profits, rents, and other earnings before taxes or deductions.
Net income or revenue – Subtract the cost of the goods sold and other expenses like amortization, taxes, interest, and depreciation from the gross income to know your profit.
Taxable income – Subtract other allowable expenses from the net income. The CRA lets you deduct expenses like utility bills and rent. Employee bonuses, travel expenses, and other costs related to your business are already treated as allowed expenses to subtract from the net income, pending taxation. Your taxable income is the final remaining amount.
Get help from an expert.
Avoid mistakes by hiring a tax accountant in Mississauga. A professional tax accountant will assist you with your personal tax returns with quick and effective solutions that will save you time and money.
