Income tax recommendations

[Iceman-19]

My income has changed significantly this year, and will continue to be in a high range for the foreseeable future. I usually just had a friend do it, or went to H&R block. I was recommended to look into a real income tax specialist, as they have more of an incentive to care about what I am eligable to receive back. Since I work up north, someone that deals with that would be good. Any recommendations?

[waddy41]

Um do you have a wife or a dependent? Do you have a business or are you a contractor?

If not then just let your friend do it...How complicated can your tax be?

[tiger_handheld]

Just because you make over 50k per year and work up north it does not require a "tax pro".
If your friend knows what he's doing, it should be fine.
The tax system is designed so that an average individual can do their own taxes.

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[Hehe]

It only makes sense to hire a tax specialist if you own many different income generating assets (job, business, investment... etc) as there might be many details that you would overlook and perhaps pay more tax than you should (their rate are different)

If your income is still based on your salary, nothing really changed... just different number.

[Iceman-19]

Waddy41: No to all your questions.

tiger_handheld: LOL, fair enough. I wish I made 50k a year, the taxes would be so much less. I dont talk to my friend anymore, and he was a she, and well you can probably figure out why, lol.

Hehe: Ok fair enough

So H&R cockblock it is then?

[tiger_handheld]

I've heard some pretty bad stories about HR Block - YMMV. Try to find a someone/someplace that is professional and wont treat you as a number.

[subordinate]

Originally Posted by Iceman-19

Waddy41: No to all your questions.

tiger_handheld: LOL, fair enough. I wish I made 50k a year, the taxes would be so much less. I dont talk to my friend anymore, and he was a she, and well you can probably figure out why, lol.

Hehe: Ok fair enough

So H&R cockblock it is then?

With tax software's now like U-File, they offer many tips for you (not to mention - easy as pie to do - a monkey could do it)


I know this is not practical for some, but I suggest you invest in yourself and read some basic tax on the CRA's website. The booklets in PDF format are a great way to start to understand what sort of deductions you can get.

[Szeto]

I am interested in some tax sheltering tips too

[bobbinka]

TFSA and RRSP

remember to claim your medical expenses

[Iceman-19]

Originally Posted by subordinate

With tax software's now like U-File, they offer many tips for you (not to mention - easy as pie to do - a monkey could do it)


I know this is not practical for some, but I suggest you invest in yourself and read some basic tax on the CRA's website. The booklets in PDF format are a great way to start to understand what sort of deductions you can get.

Yeah I have always done U-File in the past because it was free, haha.

Stuff I am wondering about is the T-2200. I travel to and from work, I have heard a few different stories about what I can get back for my travel expenses, someone told me 30-35%, and another person told me 1 flight here and 1 flight back for the entire year.

No medical expenses yet.

I have a TFSA and RRSP, but I also have a pension. I heard that I kind of get fucked on the benefits of having an RRSP if I am putting money into a pension...

These are questions that I know an $8/hr H&R block employee is going to look at me like a monkey if I ask.......

[Szeto]

Originally Posted by bobbinka

TFSA and RRSP

remember to claim your medical expenses

TFSA isn't tax deductible so that won't help I don't think?

[tiger_handheld]

Originally Posted by Szeto

I am interested in some tax sheltering tips too

Go to the Bahamas, incorporate, live there for 7/12 months of the year and contract yourself out to another country Visit Canada (call it client meetings) and stay here for 4/12 months.

[tiger_handheld]

Originally Posted by Iceman-19

Yeah I have always done U-File in the past because it was free, haha.

Stuff I am wondering about is the T-2200. I travel to and from work, I have heard a few different stories about what I can get back for my travel expenses, someone told me 30-35%, and another person told me 1 flight here and 1 flight back for the entire year.

No medical expenses yet.

I have a TFSA and RRSP, but I also have a pension. I heard that I kind of get fucked on the benefits of having an RRSP if I am putting money into a pension...

These are questions that I know an $8/hr H&R block employee is going to look at me like a monkey if I ask.......

Are you a long haul truck driver?
Your TFSA has nothing to do with your tax return.
Pension reduces your RRSP contribution limit

I can't bash HR block or their employees but I'd stay away

[Iceman-19]

No I am not a long haul driver. I was told that because we work outside the area our company gives our commuting employees a t-2200.

Pm me and we can discuss this.
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[bobbinka]

tfsa isnt deductible, but you won't be taxed on it when you take it out later. so if you're looking long term its a good idea

[Iceman-19]

I know how a TFSA works. Someone asked if I had one and I answered.
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[Hehe]

Originally Posted by tiger_handheld

Go to the Bahamas, incorporate, live there for 7/12 months of the year and contract yourself out to another country Visit Canada (call it client meetings) and stay here for 4/12 months.

You could actually incorporate there, setup a CDN subsidiary here with the subsidiary being *licensed* to the Bahama's corporation with maybe 80% or some absurd number of profit paid as licensing fee to the Bahama's company.

If anyone is into retail business, you could setup an offshore company as the main, while having the onshore as fulfillment company. Just remember, when setting up offshore corporations, you should list them clearly and have each of the functions of company clearly separated. (offshore handle transaction, onshore fulfills, maybe another onshore as a personnel outsource to the offshore company... etc) This way you can avoid any legal PITA down the road. The simplest idea is that, you cannot create an offshore company or actually do anything solely to pay less tax.

[DsZ24]

I get a T-2200 form from work too. I don't remember what the exact percentage is for what I get back, but I use it for gas, insurance, maintenance/repairs and depreciation of my truck. It helps out tho, nice to get a bit more back on my return.

Not sure how it works with flights tho, you might want to ask your employer about that.

[Ferra]

Originally Posted by Iceman-19

tiger_handheld: LOL, fair enough. I wish I made 50k a year, the taxes would be so much less.

lol everytime someone said things like "I wish I made less money so I could pay less taxes".....i would go

on your topic:
If your income is from pure employment (i.e. not self-employed, your own business, or investment, etc), there is very very little tax discretion available.
It doesn't matter if you are making 20K or 20 millions, you report what's on your T4 and you get the same type of personal deductions available to everyone else. (pretty minimal amount if you are on the high income bracket)

of course if your income is really high, and your employer are okay, you can always incorporate your own company and provide service to your employer thru your own company...this would entitle you to a lot more deductions and tax savings....
but this is also where it gets really complicated with a lot of exceptions and specific tax rules.

[tiger_handheld]

Originally Posted by Ferra

lol everytime someone said things like "I wish I made less money so I could pay less taxes".....i would go

on your topic:
If your income is from pure employment (i.e. not self-employed, your own business, or investment, etc), there is very very little tax discretion available.
It doesn't matter if you are making 20K or 20 millions, you report what's on your T4 and you get the same type of personal deductions available to everyone else. (pretty minimal amount if you are on the high income bracket)

of course if your income is really high, and your employer are okay, you can always incorporate your own company and provide service to your employer thru your own company...this would entitle you to a lot more deductions and tax savings....
but this is also where it gets really complicated with a lot of exceptions and specific tax rules.

not quite. he would have to pass the employee v. self employed test first or his employer would be on the hook for CPP, EI and he would soon be out of a job. CRA isn't stupid, although I wish they were , then we can all play hooky and get by without paying a dime.. but that will have its own set of consequences..