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General Tax Knowledge
Handy information to general topics.
Filing Your Taxes for the First Time in Canada?Filing Your Taxes for the First Time in Canada? Filing your taxes for the first time might seem like a big task, but we're here to guide you through it.…
How do I get a SIN Number or Find It if I don’t know it?Your Social Insurance Number (SIN) is essential for filing taxes in Canada. If you don’t have a SIN or can’t find yours, follow these steps to get or retrieve it
How do I change my marital status?If your marital status has changed, you can update it in CloudTax while filing your tax return.
How Do I Claim Credits from My Spouse or Common-Law Partner?When filing your tax return, you may be eligible to claim credits from your (former) spouse or common-law partner. Here’s how to do it in CloudTax
What Types of Residency Are There, and How Do I Tell?In Canada, your residency status determines your tax obligations. Here are the main types of residency, including permanent residency, and how to identify your status
When is the Deadline to File a Tax Return?
Can I Still File My Prior Year Tax Returns?Yes, you can still file prior year tax returns. It’s important to file any outstanding returns as soon as possible to avoid penalties and interest charges.
If I Made Mistakes in My Past Tax Returns, What Should I Do?If you’ve made mistakes in your past tax returns, you can file an amendment or refile to correct the errors. Here’s how
What Documents Do I Need to Keep?Keeping proper records of your tax documents is essential to ensure compliance with the CRA and to support any claims made on your tax return.
What is an RRSP and How Does It Work?A Registered Retirement Savings Plan (RRSP) is a powerful tool in Canada that helps you save for retirement while providing tax advantages.
What is an RDSP and How Does It Work?A Registered Disability Savings Plan (RDSP) is a savings program designed to help Canadians with disabilities save for their long-term financial security.
What is the Home Buyers' Plan (HBP) and How Does It Work?The Home Buyers' Plan (HBP) allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home without paying taxes on the…
What is the Disability Tax Credit (DTC) and How Do I Qualify?The Disability Tax Credit (DTC) is a non-refundable tax credit designed to help individuals with disabilities or their supporting family members reduce their tax liability.
How Do I Claim the Disability Tax Credit (DTC) on My Taxes?If you’ve been approved for the Disability Tax Credit (DTC), you can claim it on your tax return to reduce the amount of income tax you owe.
How Do I Claim the Disability Tax Credit (DTC) on My Taxes?Here’s what you need to know about Form T2201 and how to get it approved by the Canada Revenue Agency (CRA)
Who is a Dependant?A dependant is someone who relies on you for financial support. In the context of taxes, the Canada Revenue Agency (CRA) allows you to claim certain credits or deductions if…
What is an Eligible Dependent?An eligible dependant is someone you support financially, and who meets specific criteria set by the Canada Revenue Agency (CRA). Claiming an eligible dependant can provide significant tax credits, such…
Why Should I Get a SIN Number for My Child?A Social Insurance Number (SIN) is essential for accessing government programs, benefits, and tax-related processes. Getting a SIN for your child ensures they can take advantage of these opportunities as…
When should my child start filing their own taxes?Your child must file taxes the year they turn 19, but they can start earlier. Filing early has benefits and teaches valuable life skills.
What is the NETFILE Access Code?The NETFILE Access Code (NAC) is a unique 8-character code assigned by the Canada Revenue Agency (CRA) that helps verify your identity when filing your tax return electronically using NETFILE-certified…
Do I Need to Give CRA My Email?Providing your email address to the Canada Revenue Agency (CRA) is optional, but it offers several benefits for managing your tax-related correspondence securely and efficiently.
What are CMAs?A Census Metropolitan Area (CMA) is a large Canadian urban area and its surroundings, defined by population and social-economic integration.
What Happens when I allow CRA to Send my information to Elections Canada?Allowing the CRA to share your information with Elections Canada helps maintain voter registration and ensures you're on the Register.
What is Specified Foreign Property?Specified foreign property includes all assets held outside Canada that must be reported to the CRA if their total cost exceeds $100,000 CAD
What is a T1135?The T1135 – Foreign Income Verification Statement is a CRA form to report specified foreign property if its total cost exceeds $100,000 CAD
What is the Indian Act for Canada Taxes?The Indian Act defines the rights of registered Indigenous peoples in Canada and provides specific tax exemptions in certain circumstances
What Are the Different T4s?The T4 series includes tax slips issued to report various types of income or benefits to the CRA, each specific to certain income types.
Do I Have to Claim My Tips?Yes, tips are taxable income in Canada and must be reported on your tax return, whether received directly, pooled, or included in your paycheck.
Do I have to claim small cash jobs?Yes, all income, including small cash payments for informal work, must be reported to the CRA, regardless of the amount.
Do I have to claim bank interest on a checking/savings account?Yes, bank interest earned on checking or savings accounts is taxable in Canada and must be reported to the CRA, regardless of the amount.
What is Pension Splitting?Eligible retirees can transfer up to 50% of pension income to a spouse, reducing household taxes by using lower tax brackets
When Should I Consider Pension Splitting?Pension splitting can lower household taxes. Choosing it depends on your and your spouse's financial situation. Here's how to decide.
What kind of expenses can be claimed for child care?Raising children is costly, but the CRA allows you to claim child care expenses, reducing taxable income if you’re working, studying, or running a business.
What is the Northern Residence Deduction?The Northern Residents Deduction helps offset higher living costs for individuals living in prescribed northern or isolated areas in Canada.
What Northern zone am I in?To determine if you're in Northern Zone A or B, check the CRA’s list of prescribed northern and intermediate zones. Here’s how to find out.
What can I claim as a moving expense?If you moved for work, school, or business and your new home is 40 km closer, the CRA lets you deduct certain moving expenses.
What is the Election to Pay CPP?The election to pay CPP allows individuals with non-CPP income to contribute voluntarily, helping build pension and benefits eligibility.
What is the Canada Workers Benefit (CWB)?The Canada Workers Benefit (CWB) is a refundable tax credit that supports low-income individuals and families by supplementing their employment income.
What Is the Difference Between a Refundable and Non-Refundable Tax Credit?Tax credits reduce your tax bill or give money back. Knowing refundable vs. non-refundable credits helps maximize your tax benefits.
Why Would I Pay EI Premiums on My Self-Employment or Other Income?Employment Insurance (EI) premiums are deducted from employee wages, but self-employed individuals can opt in to access the same benefits.
Why Would I Pay EI Premiums on My Self-Employment or Other Income?If you’re self-employed, you can voluntarily pay Employment Insurance (EI) premiums to qualify for benefits like maternity or sickness.
What is the First Home Savings Account (FHSA)?FHSA is a tax-deductible savings plan for first-time homebuyers, with tax-free withdrawals for a qualifying home.
What can be claimed as a medical expense?The CRA lets you claim medical expenses on your tax return to reduce taxable income providing financial relief for out-of-pocket costs.
How Does the 12-Month Period Work for Medical Expense Claims?The CRA lets you claim medical expenses for any 12-month period ending in the tax year, helping you maximize your deduction.
Who Claims the Medical Expenses for the Family?Medical expenses can be pooled and claimed by the spouse or partner who benefits most, maximizing tax savings under CRA rules.
What is the Home Buyers’ Amount?The Home Buyers’ Amount (HBA) is a non-refundable credit for first-time buyers or those with disabilities purchasing an accessible home.
What is the Multigenerational Home Renovation Tax Credit (MHRTC)?The MHRTC is a refundable credit to help families with costs of creating a secondary unit for a senior or disabled relative.
What Employment Expenses Am I Allowed to Claim?The CRA allows employees to claim work-related expenses that meet specific conditions, reducing taxable income and saving on taxes.
How Do I Calculate the Space in My House That Was Used for Work or Self-Employment?If you work from home or are self-employed, you can deduct a portion of home expenses based on the space and time used for work.
How Do I Claim a Vehicle Expense for Work or Self-Employment?If you use your vehicle for work or self-employment, you can claim expenses to reduce taxable income. Here’s how:
How Do I Keep a Logbook for Vehicle Expenses?Tracking vehicle usage is required for claiming expenses. A detailed logbook calculates business-use percentage and ensures CRA compliance.
How Do I Determine the Value of My Vehicle for CCA?If you use your vehicle for business, you can claim Capital Cost Allowance (CCA) to deduct depreciation. Here's how to determine its value.
How Do I Claim My Cell Phone for Work or Self-Employment?If you use your cell phone for work or business, you can deduct a portion of expenses. Accurate claims require careful documentation.
Can I Claim Interest Charges from My Credit Card on My Self-Employment Income?Yes, you can claim credit card interest for self-employment expenses using a separate card for business simplifies tracking and avoids issues.
Who Claims the Medical Expenses for the Family?The Digital News Subscription Tax Credit is a non-refundable credit from the CRA to support Canadian journalism by reducing your taxes.
How Do I Change My Address with the CRA?Updating your address with the CRA ensures you receive important correspondence, tax refunds, and benefits without delays. Here’s how to update it.
How Do I Pay for My Taxes Owing?If you owe taxes to the CRA, pay on time to avoid penalties and interest. Here’s how to make your payment efficiently.
What happens if I overpay my taxes?If you overpay taxes, the CRA will process your return and refund the extra amount. Here’s what to know.
What happens if I underpaid my taxesUnderpaying taxes may result in CRA penalties and charges. Here’s what to know and how to address it effectively.
Are There Assistance Programs to Help with Paying My Taxes Owing?Yes, if you can’t pay your taxes in full, the CRA offers assistance options to manage your tax debt and minimize penalties and interest.
Do I Have to Report My Foreign Property If It Has No Effect on My Taxes?Yes, the CRA requires reporting foreign property over $100,000 CAD. Failing to report may lead to penalties.
What is cryptocurrency?Cryptocurrency is digital money that isn't controlled by any government or bank and uses codes to keep transactions safe.
How do I report cryptocurrency on my taxesReporting to the CRA is required because it’s treated as property. Crypto transactions may be taxed as capital gains or business income.
Do I have to report cryptocurrency on my taxesYes, you must report cryptocurrency. The CRA treats it as property, and transactions may be taxed as capital gains or business income.
Why would I claim less than my RRSP contributions?Claiming less than your RRSP contributions can be a smart strategy, allowing you to save more taxes by deferring deductions to future years.
How Do I Know How Much to Contribute to My RRSP?Knowing how much to contribute to your RRSP is key to maximizing tax savings while staying within your limit. Here’s how to calculate it.
What Is the Amateur Athlete Trust in an RRSP?An Amateur Athlete Trust lets amateur athletes save sports income (like sponsorships or awards) tax-efficiently.
How to File Your Taxes in 4 Simple StepsFiling taxes might seem overwhelming, but with a clear plan and the right tools, it’s easy. Here’s how to file your taxes in four steps.
How to Calculate CCA on Your Vehicle for Self-EmploymentIf you use your vehicle for business, you can claim CCA to deduct depreciation. Here’s how to calculate and report it on your tax return.
Should I Register for GST/HST as a Self-Employed Individual?As a Self-Employed Individual, you may be wondering if you need to register for a GST/HST account. Here’s what you need to know.
What Do I Do If I Changed Vehicles in the Year? (For Self-Employed and Work use of personal vehicle)If you switched vehicles during the year, you’ll need to track each one separately for tax purposes. Here’s how to handle it properly.