#AskMelanie: Should I make personal income tax installments suggested by CRA? 

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Many of my clients come to me with really important questions that need an immediate answer. I never leave my clients hanging.  Each month in my #AskMelanie column, I address those burning questions so that you can maximize your time on growing your business and not worry about taxation issues. As a CPA accountant serving the Milton and GTA community, I am excited to have recently opened a bright and beautiful location in downtown Milton so please feel free to drop by and address your needs with me in-person.

#AskMelanie: Should I make personal income tax installments suggested by CRA?

Based on your income tax returns filed for the past couple of years, if you owed more than $3,000 in this past taxation year, you may need to make installments towards the coming taxation year.   Is that always the case ? Nope.  Something on this year’s tax return may not re-occur in the next taxation year (for example the sale of a property) and so, your income may, in fact, be lower this coming year.  You always have the option of calculating your own installments and should consult with your accountant.

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!

#AskMelanie : What Happens if I File My Taxes Late?

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In business and life ignorance is never an acceptable excuse! Every week I’m here to let you in on financial implications in order to support your goals and financial well-being.  In our new series, “Ask Melanie” find out what happens when you don’t file your taxes.

Melanie, What Happens if I File My Taxes Late?

If you have a balance owing, a penalty is applied immediately based on your balance.  The penalty is 5% plus 1% for each complete month your return is late (to a maximum of 12 months).  If you are entitled to a refund, no need to worry, right?

Correct for this year, but don’t be late in any of the next 3 years because of your penalty will double! 

My advice: Best to play it safe and have your tax return prepared by the April 30th deadline every year. If you made a mistake or run into unforeseen circumstances, not to worry please reach out. I would be happy to discuss your situation confidentially. There is no judgment, just solutions.

Have a tax or bookkeeping question for me? Leave a comment below or email with your question so we can feature your question and my solutions in an upcoming blog.

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!

4 Tips for Achieving a Positive Money Mindset

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My clients are so busy at tax time and with so many responsibilities to take into consideration it is easy to be hard on yourself. Here are some tips to balance the right money mindset.

4 Tips for Achieving a Positive Money Mindset

 

Stress – especially financial stress – rears its ugly head in tax season; however, you can control the impact it has by making a conscious decision to focus on the positive. This is always easier said than done, so here are a few tips to help you keep your mind and your money on the right track:

Set realistic goals. Take some time to sit down and really think about your financial goals. Set yourself up for success by breaking them down into realistic, attainable steps. Mastering one small step at a time you will help you remain motivated to reach your ultimate financial goal.

Celebrate your achievements. Allow yourself to take pride in your accomplishments – no matter how small they may seem. Congratulate yourself for sticking to your monthly budget or even for taking the initiative to create a monthly budget. The satisfaction you get from these achievements will help you build upon your successes.

Accept the fact that you aren’t perfect. You will face setbacks that will threaten to derail you. These are an inevitable fact of life. But regardless of when or where you get sidetracked, you don’t have to give up and admit defeat. We all make mistakes, and that’s OK. If you ever feel discouraged you can listen to our new podcast series featuring inspirational success stories from some of our clients.

“Today I am thankful for _____.” Get in the habit of forcing yourself to complete this sentence with a different word every day. This will give you the opportunity to shift your mindset from focusing on what you don’t have to focusing on what you do have.  This is a great practice for those times you’re feeling overwhelmed or discouraged. It’s a simple task that will help you take a step back and re-assess your priorities.

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!

Content from Money Management.org 

Melanie’s Advice: Make the Most out of Your Charitable Donations

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Here’s a tax tip you might not have considered. Instead of submitting you charitable donations each year, save them up and submit multiple donations at once. 

Here’s some specific advice as featured on CBC News:

Canadians mostly donate to charities out of compassion for those in need — or at least that’s what we said when asked about our top reasons for giving in a recent Statistics Canada survey.

But those who are less motivated by such noble feelings might be enticed to give by the promise of a tax break. The federal government offers a number of tax incentives for generous Canadians who open their wallets for charity.

People donate to charities because they want to have a sense that their money is going to a purpose they personally believe in, said Adrienne Woodyard, a partner at law firm Davis LLP in Toronto.

“Everyone knows that tax dollars are used to fund a broad range of social programs, but charitable giving allows people to have a much greater degree of control over how their money is used and enables them to leave a legacy behind that may have profound benefits for future generations,” she told CBC News.

Here are some things you should know about making charitable donations in Canada.

Give generously

To claim charitable donations, you need to have official receipts that show the charity’s Canada Revenue Agency registration number. The most you’re able to claim in a year is 75 per cent of your net income. In the year of a person’s death and one year prior, the limit for donations is 100 per cent of the deceased’s net income.

Combine multi-year donations

If you donate small amounts in the year, you might consider combining two or more years’ worth (up to a maximum of five years) of donations to push you over the $200 threshold to take advantage of the higher tax credit.

Once over the $200 level, accounting firm KPMG recommends in its 2015 tax planning guide making that extra contribution in December rather than early in the new year in order to not have to wait until the following taxation year to claim the credits.

Share with your spouse

If you and your spouse donate separately, think about combining your donation receipts and claiming them on one return so that you’ll get the low credit rate on $200 once instead of twice.

‘Some people, if they have certain types of assets then they are making the decision to either gift them to someone, donate them or sell them.’– Adrienne Woodyard, tax lawyer

The higher-income spouse should claim all the donations since the credit reduces federal and provincial high-income surtaxes.

The CRA also lets a donation made by one partner to be split between both in any proportion. Partners are also able to put each other’s unclaimed charitable donations from previous years toward their returns.

Choose wisely

So, the tax incentives have convinced you, now it’s time to choose your charity.

The government lets you claim tax credits for donations to CRA-registered charities, as well as other “qualified donees,” including more than 480 U.S. universities, amateur athletic associations, government bodies and more.

Check out the agency’s Charities Listing, which provides annual information on organizations’ finances, activities and operations.

 

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!

Melanie’s Advice: Maximize Those Medical Expenses

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I think one of the most missed items for tax purposes is medical expenses.  A tax credit is available to individuals and families based on what they have spent (has to be out of pocket and after any benefit reimbursement) on almost anything to do with their health including:

  • Dental
  • Optical
  • Prescriptions
  • Therapy, and so on…

The total needs to exceed a minimum threshold, but because you can use any 12 month period ending in the tax year, If a taxpayer provides their 2016 and 2017 expenses, I will look to maximize the claim, if any is available.

Here is a list of detailed medical expenses.

Do remember that caregivers are also entitled to tax credits as well.

A little preparation goes along way and I can’t wait to help you maximize your tax opportunities.

 

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!

How to Deal with Accounting Overwhelm

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According to Thrive Global, while financial decisions can cause anxiety at any time of the year, adding a host of tax-related tasks (hello paperwork!) to your plate can be overwhelming.

But here’s the good news: There’s no better time than now to create habits that help you reduce stress and take care of your mind and body.

Whether you tend to procrastinate or already have everything in order, we want to know: How do you manage your schedule and mental well-being during this stressful time of year?

Here are some prompts to consider:

  • Does tax season stress you out? Why or why not?
  • How do you focus when you have too much on your plate?
  • Did you put off your taxes until the last minute this year? If so, why do you think that is?
  • How do you avoid procrastination?
  • How do you manage money-related anxiety?
  • How do you practice self-care during tax season and other stressful times of the year?

It is important not to avoid dealing with business tasks such as your accounting just because they cause you stress. In the long run, you will feel better and more in control when you stay on top of your bookkeeping and accounting.

I understand how busy you are as a business owner and will help you put systems in place to keep you get organized and feeling productive. Just give me a call or email me to discuss your business situation so we can help you prioritize, get things done, deal with feelings of being overwhelmed, and ultimately become more knowledgeable so your business can thrive.

 

I provide a wide range of professional accounting, income tax preparation and consulting services including:

• Financial statement preparation
• Accounting and bookkeeping
• Personal Income tax preparation
• Estate returns
• Corporate Income tax preparation
• CRA audits and assistance
• HST and sales tax
• Business succession and valuations
• Business start ups

Let’s get started in three easy steps:

  1. Learn more about me ⇨ Send me a LinkedIn connection invite
  2. Send me an Email ✉ Send me a message at melanie@miltonaccountant.com
  3. Call ✆ Give me a call locally at 905-875-4444

Get more advice from Melanie on her blog and connect with her on Facebook and Twitter as well!