The stress of the dreadful tax payment can become a living nightmare for any citizen of Canada. How to pay taxes, when to pay tax, is installment better, pandemic benefits for tax payment from CRA – at Pro Finances E&E Limited with our expertise, we help you to pay your taxes the right way and on time, getting a rebate from CRA as much as possible, even suggest you ways when you are unable to pay your taxes.
Paying Taxes to the CRA
Educate yourself enough before tax season comes. Our host of chartered accountants helps with tax preparation service to pay your taxes on time to avoid penalties. We look for exemptions, family benefits, medical expenses, vehicle expenses, retirement plans, etc to get you as much refund as possible. It’s advisable to play ahead of pax payment.
Personal Income Tax Payment
If you are reading this blog in 2021, the last date to pay your taxes for 2021 is April 30th, 2022. Need proper documentation for government tax benefits?
No worries! Our tax professionals will provide accurately convenient and reasonably priced tax preparation to mitigate tax liability and maximize rebates and refunds.
Using the latest technology for tax returns, paying taxes through cards and online facilities, looking through last year’s refund and tax amounts.
Corporate Income Tax Payment
If you have a start-up business or a booming business, doing tax to maximize efficiency and simplify the tax-paying process is important. Corporate tax is when foreign and domestic companies have to pay income tax for doing business in a particular country.
We help you to arrange your tax affairs efficiently, prepare T2 & CT23 corporate tax returns, estimate tax installation, prepare required documents to resolve tax disputes, and increase tax refunds as much as possible.
Various Modes of Tax Payment
You can pay your corporate income tax, personal income tax through various ways:
- Paying in person at your nearby bank.
- At a nearby Canada Post outlet.
- By sending a cheque.
- To make an online payment via debit card, your debits card needs to have multiple logos, such as Interac Debit, Visa Debit, Debit Mastercard.
- After this, go to CRA payment, click on pay now, type in your account no, period date, amount to complete payment. Payment is done in 1-3 business days.
- Online banking: You can set an electronic fund transfer to the CRA. The payment is done in 5 business days.
Paying Tax Installment Payments
CRA requests you to complete your tax payments of a particular within that year. for example, Your tax filing date 2022 should be within 2022 in quarterly installment payments. This not pre-paying of your taxes even if it seems so.
- Personal income tax payment installment: If you owe the CRA more than $3000 of net taxes, you can pay them in four installments.
- Corporate income tax payment installment: If your corporate income tax dues are more than $3000, you can pay them monthly, quarterly towards next year’s tax payment. Depending upon the corporation’s type, how compliant your corporation is with CRA, current or previous year’s due tax, etc.
- Late/ unpaid installment payment: If you do not pay your taxes on time, interest and penalty charges will be applied.
- GST/ HST installment payment: If your owed tax is more than $3000 and want to pay your GST or HST annually, the payment is equivalent or ¼ of last year’s taxes to be paid in four installments.
5 Ways to Maximize Tax Return
1. Vehicle expenses
You’re a self-employed person earning your livelihood through the car. You can claim vehicle-related expenses like gas, maintenance, repairs, licensing, leasing, registration cost, etc. The deduction depends upon whether you bought or leased it.
If you lease it, you can get a deduction of up to $800 in monthly leash payment & annually up to $7000. If you bought your car, the deduction amount for passenger cars is up to $30,000, and for zero-emission passenger vehicles $55,000.
2. Childcare expenses & family benefits
You need to file your taxes regularly to get your Canada Child Benefit and GST/ HST credit. If you have children between 7-15, claim up to $5000 and for children below age of 7, claim up to $8000. This way you can lower your taxable income.
3. Medical expenses
From regular dental check-ups, ophthalmology treatment, private medical insurance to major surgeries. The CRA allows you to claim various medical expenses as a non-refundable tax credit. Be sure to keep your prescription, medical bills, and other documents before the CRA if asked to.
4. Interest payment on student loans
Student loan interest is a non-refundable tax credit. You can only lower your tax payment and not get a refund. To lower your student loan tax payment, your loan needs to be sanctioned under the Canada Student Financial Assistance Act, the Canada Student Loans Act, and equivalent provincial or territorial programs, not on loans from foreign banks.
5. Home office deduction
You can claim up to $800 on CRA’s new temporary flat rate method. If you and your employer worked from your homes for 50% of the working days for 4 consecutive weeks during the pandemic, you are eligible for this.
Filing your taxes on time while ensuring various deductions and tax credits to maximize tax refund is smart work. Hire Pro Finance EE Tax professionals to make it easy for you. Cal 905 278 6088, or contact us for further details.