Economical Monthly Bookkeeping Services for Canadian Businesses

A tax deduction is an amount subtracted from your income before tax is worked out, so it reduces the income being taxed rather than the tax bill directly. Its worth depends on your marginal rate: the higher the rate, the more the deduction saves. Common examples are RRSP contributions, child care costs, union dues, moving expenses and business expenses. Credits work the other way, reducing the tax calculated on that income.

Multiply the pre-tax price by the combined rate for the province where the supply is made, then add that amount to the price. If the price already includes tax, divide the total by one plus the rate to get the pre-tax amount, and the difference is the tax. The rate depends on the province of supply rather than where your business sits, so verify the current rate for that province and confirm the item is not zero-rated or exempt.

Most people say tax preparer or accountant. In Canada the work is not reserved to a single title: preparers, bookkeepers, accountants and tax agents all prepare and file returns, and anyone filing more than a set number of returns for payment must use an electronic filer number from the CRA. Some designations are protected titles, so check what a person actually holds. Ask who reviews the return, how the fee is set, and whether CRA follow-up is included.

Interest is normally an exempt financial service, so you do not charge GST/HST on interest you earn or on interest you add to an overdue invoice. Exempt supplies differ from zero-rated ones: zero-rated sales are taxed at 0% and still let you recover input tax credits, while exempt supplies do not. If most of your revenue is exempt, your registration position and credit recovery both change, so review the CRA's financial services guidance.

Canada has no annual tax-free allowance of the kind the United Kingdom applies to capital gains. What you get instead is the basic personal amount, a credit that shelters a first band of income each year, plus targeted reliefs: the principal residence exemption on a qualifying home and the lifetime capital gains exemption on qualifying small business shares or farm and fishing property. Only half of a capital gain is taxable for 2025 and 2026, with no separate yearly allowance.

Three sources are normally used: the split shown on your municipal assessment notice, an appraisal, or a reasonable allocation in the purchase agreement. The split matters because land is not depreciable, only the building portion can be claimed for capital cost allowance, and both parts are tracked separately when you sell. Keep the working papers supporting your allocation; the CRA can challenge a split that looks arbitrary.

Start at the CRA sign-in page and register for My Account. You can sign in through a participating bank as a sign-in partner, or create a CRA user ID and password. Registration asks for your social insurance number, date of birth, postal code and an amount from a recently assessed return, so have that assessment in front of you. There is also a document verification option that grants full access sooner. Filing at least one return first makes registration much easier.

Sign in to CRA My Account and check the uncashed cheques list, your balance, and whether any returns are still outstanding, since a refund is only issued once a return is assessed. Missing returns also stop benefit and credit payments. An old CRA cheque never expires; you ask for it to be reissued. Forgotten bank, insurance or pension balances sit with provincial unclaimed-property registries rather than the CRA, so check those separately.

No. Line 101 reports total sales and other revenue for the reporting period, excluding the GST/HST you charged. The tax collected and collectible goes on its own line further down the return. Use the same basis as your accounting records, and expect the CRA to compare line 101 with the revenue reported on your T1 or T2, since an unexplained gap between the two is a common review trigger.

Usually yes, if you are not registered. Non-resident digital suppliers such as ad networks and software subscriptions must register under CRA's digital economy rules and charge GST/HST to Canadian customers who are not registered themselves. If you give the platform a valid GST/HST number, it generally stops charging the tax and you account for it yourself where the rules require. Tax charged on genuine business purchases is normally recoverable as an input tax credit once you are registered.

Canada has no joint return, so your husband cannot claim you as a dependant the way US filers do. He can claim the spouse or common-law partner amount if your net income is low enough, and unused credits such as the age, disability, tuition and pension amounts can sometimes be transferred to him. Medical expenses and donations can also be pooled on one return. Both of you still file your own T1, reporting each other's net income.

Sometimes, as a credit rather than a deduction. Examination fees paid to a professional body can qualify for the tuition tax credit when the exam is required to obtain a professional status or licence recognised by statute, and the fee is above the CRA minimum. Study materials, travel and annual membership dues do not count. You need a receipt or official tax slip from the body. Check the CRA page on examination fees for licensing or certification.