Low-Cost CRA Notice of Objection for Canadian Businesses and Individuals

Start with the basic personal amount, which is already printed on the form, then add only the credits you genuinely expect to claim, such as tuition you will pay this year, an eligible dependant, the age amount or an amount transferred from a spouse. Total them, sign and date, and give the form to your employer rather than the CRA. With two jobs, claim the amounts at one only. You can also ask for extra tax to be withheld.

Download them from the forms and publications section of canada.ca, where current and prior-year federal and provincial forms sit as printable PDFs. During filing season paper packages are also stocked at some Canada Post and Service Canada outlets, and the CRA will post a package if you order one by phone. Filing software completes the same forms behind the scenes, so most people never need the printed version at all.

Check My Account, which shows your current balance, any instalment requirement and the assessment for every year. The notice of assessment for your last filed return also states the balance, and the CRA's individual enquiries line can confirm it once you verify your identity. If returns are missing, the balance is not final until those years are filed. A representative can review it for you once authorised through Represent a Client or form AUT-01.

The individual and business enquiry numbers, along with their hours, are listed on the CRA contact page. Have your social insurance number or business number and a figure from a recent return ready, because the agent must verify you before discussing anything. Many tasks never need a call: CRA My Account and My Business Account show balances, assessments, slips and instalments, and let you file a dispute, change a return or set up a payment arrangement.

Two separate charges apply. Filing late costs 5% of the balance owing plus 1% for each full month the return is late, to a maximum of 12 months. Paying late costs compound daily interest on the unpaid balance at the CRA's prescribed rate, which is reset every quarter. Interest also runs on the penalty itself. Check the current quarterly rate on the CRA's prescribed interest rates page before estimating what you owe.

No. Filing and paying are legal obligations, not choices. A return is required if you have tax payable, and also whenever the CRA asks you to file. Filing late with a balance owing brings a late-filing penalty that grows for each month the return is outstanding, plus compound interest on the balance. Prolonged non-filing can end in an arbitrary assessment, a wage garnishment or a lien. If you cannot pay, still file on time and arrange payment terms.

A review is not an audit. The CRA asks for receipts or documents supporting a claim, gives a date to respond, then either accepts the return as filed or issues a reassessment. Timing depends on the type of review and how fast complete documents arrive; sending everything requested in one package is the fastest route. Track progress in CRA My Account, where the letter and the outcome both appear.

You remain responsible for what your return says, even when someone else prepared it, so the CRA assesses the tax, interest and penalties against you. A preparer who makes or participates in a false statement can face third-party penalties of their own, and may be liable to you for negligence, which is why engagement terms and professional insurance matter. Keep your source documents for six years from the end of the tax year they relate to.

Personal and living costs never are: your own groceries, everyday clothing, commuting between home and a regular workplace, and home costs without a qualifying work space. In a business, capital purchases are written off over time through capital cost allowance rather than expensed, club dues and most memberships are denied, only a portion of meals and entertainment is allowed, and fines, penalties and interest charged by the CRA are not deductible. Political contributions and donations give credits, not expense deductions.

Child care is a federal deduction, not a credit. Eligible fees paid so you can work, run a business, or study are deducted from income, normally by the spouse with the lower net income, subject to an annual limit per child that depends on the child age and disability status. Keep receipts showing the provider name and social insurance number or business number. Quebec adds a refundable provincial credit for child care, and several provinces subsidise fees directly.

The choice does not exist here. Every individual files their own return, so the real decision is which return claims what. Charitable donations, medical expenses and several family credits can generally go on either partner's return, and eligible pension income can be split between you. Preparing both returns at the same time lets you test those allocations and pick the combination that gives the lowest total tax for the household rather than for one person.

No. A fine or penalty imposed under a law of Canada, a province or a foreign country is not deductible, so speeding tickets, camera charges and parking fines stay a personal cost even when you were driving for work. If a business pays an employee's ticket, that is a taxable benefit to the employee. Towing, licence fees and legitimate paid parking on a business trip are deductible, so record those separately from fines in your bookkeeping.