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Pulling my hair out with tax return - should we just get an accountant?

Pulling my hair out with tax return - should we just get an accountant?

Old Apr 6th 2015, 1:38 am
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Default Pulling my hair out with tax return - should we just get an accountant?

Hey all,

So, the other half needs to do a tax return (I dont think I need to this year), some background info:
We arrived in September as PR
Husband started working in Oct/Nov time
I didnt start working till this year, so guessing I dont have to complete a tax return till next year
He's downloaded Studiotax & HRBlock software, and I've checked this forum for loads of helpful info....but now we are stuck.

In the UK we had a house, which we sold before moving here - and we both had decent paying jobs till August. When it comes to filling in our details online, when we put the UK stuff it says we owe over $5000 - surely that's not right? That's more than what he made working in Canada for those few weeks before the end of 2014!! It didnt ask for UK tax that we'd already paid or what country the money was earned in.....did we do something wrong or is this right?

We're getting to the panicy stage - is it just worth getting an accountant? And can anyone recommend a good accountant in Toronto?

Sorry if these questions have been asked a million times already.

Thanks, G
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Old Apr 6th 2015, 2:10 am
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Might not have to report any UK stuff. Newcomers to Canada only have to report world income for the part of the year that they were resident in Canada.
http://www.cra-arc.gc.ca/tx/nnrsdnts...nwcmr-eng.html

And don't hesitate to call CRA if you have questions. I've always found them to be very helpful: http://www.cra-arc.gc.ca/cntct/phn-eng.html

Consulting a tax professional is also a good idea - especially if you have any doubts about your tax returns.

Last edited by MarylandNed; Apr 6th 2015 at 2:16 am.
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Old Apr 6th 2015, 2:23 am
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Filing a tax return may entitle you to some benefits now or in the future. The cost of an accountant in my view is well worth it.
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Old Apr 6th 2015, 12:58 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by MarylandNed
Might not have to report any UK stuff. Newcomers to Canada only have to report world income for the part of the year that they were resident in Canada.
Newcomers to Canada (immigrants)
Hey thanks MarylandNed - that's really interesting thanks for that.
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Old Apr 6th 2015, 12:59 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Aviator
Filing a tax return may entitle you to some benefits now or in the future. The cost of an accountant in my view is well worth it.
Oh yeh, hmmm, thanks - will do one for me too then.
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Old Apr 6th 2015, 1:06 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

From arriving in Canada we both have done tax returns with an accountant has has always been money well spent. I didn't work for the first couple of years and the account was able to claim for me via my husband and we always got cash back
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Old Apr 6th 2015, 1:15 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Silverdragon102
From arriving in Canada we both have done tax returns with an accountant has has always been money well spent. I didn't work for the first couple of years and the account was able to claim for me via my husband and we always got cash back
Thanks Silverdragon. I think we might end up getting an accountant going forward - navigating tax returns is not the most fun
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Old Apr 6th 2015, 2:36 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

The first two years I tried to do it myself and since then we always use a tax accountant to do it. We only pay $38 each - bargain! I would NOT recommend H&R Block. They never seem to know all that can be claimed.

Check online all the tax deductions you might be able to use (and even some your not sure on) and put your paperwork together. Also, did you know that you can income split your taxes with your partner? Great if one is stay at home or on a low income. Both of you should file.

Section 2 – Individuals | The Tax planning guide 2014-2015

With stuff like medical cover, we can print a yearly statement online so you don't have to always keep track of out-of pocket expenses. There are a loads of medical deductions you should be able to claim including your premiums and travel, meal and parking for over 80km one-way.

On January 1st each year we started a new tax envelope and put everything in there to save hunting around at the end of the year.
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Old Apr 6th 2015, 2:38 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Cookie
On January 1st each year we started a new tax envelope and put everything in there to save hunting around at the end of the year.
GREAT idea - will for sure be starting this. Thanks for all the advice Cookie
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Old Apr 6th 2015, 3:21 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Cookie
On January 1st each year we started a new tax envelope and put everything in there to save hunting around at the end of the year.
Yep - I do this too and have encouraged my kids to do the same now that the oldest is having to file tax returns. It saves a lot of headaches. I also have an email folder and a computer folder dedicated to each tax year for storing any relevant emails or files.
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Old Apr 6th 2015, 5:01 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Cookie
Check online all the tax deductions you might be able to use (and even some your not sure on) and put your paperwork together. Also, did you know that you can income split your taxes with your partner? Great if one is stay at home or on a low income. Both of you should file.
Dumb question -how do you do the income split?
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Old Apr 6th 2015, 8:10 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by dishwashing
Dumb question -how do you do the income split?
File as a couple.

Claiming your spouse or common-law partner’s unused credits | The Tax planning guide 2014-2015

Here are some other ways to income split

Income splitting with family members | The Tax planning guide 2014-2015
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Old Apr 6th 2015, 10:01 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Yes it's worth it.

We pay $100 each for our accountant and it's worth it for lack of stress!

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Old Apr 6th 2015, 10:25 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

Originally Posted by Silverdragon102
...I didn't work for the first couple of years and the accountant was able to claim for me via my husband and we always got cash back
Standard on-line stuff does that too and it's free for us. Even if you pay it's only $18 per return.
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Old Apr 6th 2015, 10:29 pm
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Default Re: Pulling my hair out with tax return - should we just get an accountant?

I'd also recommend looking at some different tax software. I used Turbotax for our first tax year in Canada. It has a really good 'interview' style, and it does ask about foreign income, and income before becoming resident, and puts it all in the right place! It will likely ask for your UK income before you moved to Canada, but that won't be taxable in Canada because you will have paid tax on it in the UK.
I used Turbotax our first year and entered our UK incomes before moving, UK income continuing after we were living in Canada, self-employment income in Canada, and filed as a couple to split the income. It did it all for me.

Granted, there were a couple of things I didn't like about the software and I'm trying UFile this year, but I've looked at Studiotax and as a newcomer found it difficult to navigate, and UFile is not as clear as Turbotax.
Of course the other option is just to use an accountant, but if you really don't want to do that I'd recommend giving Turbotax a go.
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