Due to the pandemic, home office expenses have become the hot topic in taxation. Many people were required to work from home, and others started side gigs to make ends meet. Read on to find out what you can claim as home office expenses if you’re an employee or self-employed.
To claim your working from home expenses you must:
You can claim a deduction for the additional running expenses you incur because of working from home.
Running expenses are expenses that relate to the use of facilities within your home and include:
If you're a sole trader or business owner and your home is your principal place of business.
Whether you are claiming home office expenses as an employee or as a self-employed person, the basic eligibility criteria are the same. To claim these expenses, your workspace at home must meet one of the following conditions:
The workspace is where you mainly (more than 50% of the time) do your work.
You use the workspace only to earn your employment income. You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties.
All expenses must be prorated based on the area that your home office represents relative to your entire home. For example, if your home office represents 10% of the total square footage of your home, you can only claim 10% of the eligible expenses.
As a rule, a self-employed individual can claim more expenses than an employee. For example, employees cannot claim expenses related to homeownership, such as mortgage interest and depreciation, but self-employed individuals can claim them. Computer accessories (monitor, mouse, keyboard, headset, etc.) and furniture (desk, chair) are other expenses that employees cannot claim.
There are also differences between salaried and commission employees. For example, a commission employee can claim home insurance and property taxes, but a salaried employee cannot.
Below is a handy table that compares the expenses you can claim as an employee or a self-employed individual.
| Expense | Salaried Employee | Commission Employee | Self-employed |
| Heat | Yes | Yes | Yes |
| Electricity | Yes | Yes | Yes |
| Insurance | No | Yes | Yes |
| Maintenance | Yes | Yes | Yes |
| Mortgage interest | No | No | Yes |
| Property taxes | No | Yes | Yes |
| Rent | Yes | Yes | Yes |
| Depreciation | No | No | Yes |
| Internet access fees | Yes | Yes | Yes |
| Cell phone fees | Yes | Yes | Yes |
| Computer accessories* | No | No | Yes |
| Furniture* | No | No | Yes |
* For self-employed individuals, these expenses would be claimed under depreciation.
If you are looking for a professional Tax Accountant who can lead you through the process of claiming business expenses on your tax return, then feel free to reach out to Filing Taxes at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
Tax Season is upon us, so you may be tempted to save yourself a few dollars by doing your own taxes. Tax returns may seem straightforward, but they can be complicated and stressful to the untrained eye. Luckily, Filing Taxes is here for your help. Let’s begin with “What is Line 10100 on My Tax Return?”
One of the few tax lines that most Canadians will have on their tax return is line 10100. In case you're wondering what exactly it is, you've come to the right place.
Simply put, Line 10100 captures the employment income on your Canadian tax returns. Employment income is usually shown in box 14 of the T4 tax slips you received from your employer(s).
Salaries, commissions, wages, gratuities, bonuses, and tips are a few examples of employment income that could be reported on box 14. Your employment income is reported on box 14 of your T4 slips, and the total of your box 14 amounts from all T4 slips makes up your line 10100. Although line 10100 is your employment income, it doesn't always represent your total income. This amount is found lower on your return on line 15000.
When you have an employer (or employers), they will provide you with a T4 slip during tax season. This slip will state your income to place into line 10100 on your tax return.
If you have not received a T4 slip from your employer, you may want to speak to them directly. All employers are required to submit T4 slips to their employees by the end of February. Since line 10100 depends on T4 slips, it is important to contact your employer about missing slips. If your employer fails to send the forms, even after contacting them, you can log in to CRA My Account and view slips from previous tax years.
Locating line 10100 can be a tad confusing, especially if it is your first time filing your tax return. The entry is often used to verify CRA logins and is a vital part of the annual return. If you have completed filling the return and looking back to find line 10100, it is located on the third page of your T1 General Form. You can pull up your T1 from CRA My Account and print it or complete online filling. Line 10100 appears in Step 2 on Page 3 of your T1 – Income Tax and Benefit Return. It is also the first line of Step 2 you will encounter on provincial and territorial income return forms and designated as the "Total Income" section of the T1.
The figures in Box 14 of your T4 slips are what goes into line 10100. Box 14 captures all your employment income across all your jobs and includes salary, wages, bonuses, and so on. If you receive any of these amounts from your employer and they’re included in box 14 of the T4 slips, they count as employment income used in calculating amounts for line 10100.
Not all employment income is included in the T4 slip, which you need to calculate line 10100 entries. For instance, income earned from another country, net research grants, veteran benefits, clergy housing allowance, royalties, and wage-loss replacement don't appear on your T4. Line 10400 is known as Other Employment Income and includes some insurance plans and workplace payment plans. Other non T4 entries that you should add to line 10400 include income from supplemental unemployment benefits, employee profit-sharing plans, and medical premium benefits, as well as tips not included on your T4 slip.
Why is it important to calculate the amount that goes to line 10100, or why is it even necessary to know the amount? Here are a few reasons:
Employment income is the biggest tax line item for most Canadians.
It is used to verify CRA logins and you may be asked to confirm the amount if you call CRA on the phone
Additionally, it is used to calculate how much Canada employment amount, line 31260, you can claim on your tax returns.
The amount in Line 10100 only contains employment income. If you have income from other sources, then your total income would differ from this amount.
Line 15000, found at the end of Step 2 of the T1 – Income Tax and Benefit Return, is the tax line that captures income from all sources.
Yes. As of 2020, tax forms have been revised. Several different revisions have been made, one of them is related to the numbers and lines. Lines that used to contain only 3-4 digits now contain 5 digits. Line 101, for example, has now been changed to Line 10100.
Why the changes? Perhaps to harmonize the numbering system or to make it easier to add new tax lines in the future.
Hopefully, you now have a better understanding of what line 10100 on your tax returns means and where to find the amount.
Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
The TD1 Personal Tax Credits Return is used to calculate the amount of income tax that will be deducted or withheld from your employment or pension income. It is called a personal tax credit return, and personal tax credits (non-refundable tax credits) are taken into consideration when determining your tax withholding calculations.
Simply put, a TD1, Personal Tax Credits Return, is a form that is necessary for calculating how much tax should be withheld from payments. If you are an employer who must run payroll in Canada or a pension payer, you most likely will be asked to fill this form out to figure out how much tax should be remitted from any payouts to send back to the Canada Revenue Agency (CRA).
Any person who has held any legal employment, from jobs at restaurants to a run-of-the-mill 9-5 office job, will probably have already signed and filled out one of these forms when a company has onboarded them.
The government created the TD1 form so it would be able to collect the appropriate amount of tax from you regularly.
It’s easier for the government to estimate the amount of tax you will owe at the end of the year and take it incrementally from each paycheque, instead of trusting you to set aside the correct amount of money and hand it over.
The goal is to gather enough information about your salary and the tax credits you will be using so that it can roughly calculate the percentage of your income that you will owe in tax at the end of the year. The more applicable tax credits, the less tax will be taken from your paycheque and the more money you’ll have to live on. If you have no applicable tax credits, and many don’t, then the amount of tax taken will be based on the marginal tax rate of your salary. If it turns out that it collected too much tax, then it will refund any excess. If it collected too little tax, then you will owe some. The exact amount is calculated when you file your tax return.
Let's dive deeper.
This form is used to collect the necessary tax from each working person. to forecast how much tax a person will owe after a fiscal year and deduct it progressively from each paycheque. This relieves the individual of the task of calculating and forecasting their tax liability to the CRA.
By completing a TD1, employees provide the government with salary and tax credit information. The CRA uses this data to estimate your tax burden.
The tax amount can be higher or lower depending on the tax incentives available. If a person does not qualify for any appropriate tax credits (which many do not), the amount of monthly tax deducted will be dependent on their marginal tax rate.
Because monthly deductions are estimates, the CRA may collect too much tax and refund any overage. When a tax return is assessed, the CRA refunds the appropriate amount.
Wondering who should fill out a TD1 form? Any individual who is
Employees are not required to fill out a new TD1 form each year unless there has been a change to their tax credit amounts. If an employee has to change their tax credit amounts, they must complete and give their employer a new form within seven days of said change.
All new employees must fill out two TD1 forms upon starting a new job. It is usually included in onboarding documents. A new hire must complete both the federal TD1 and the provincial TD1 if more than the basic personal amount is claimed. In Quebec specifically, employees must use the TD1 (federal) and the provincial Form TP1015.3-V, Source Deductions Return.
To fill the forms out, employees must follow the instructions on each line of both the federal and provincial forms. Then, each of the amounts on the lines is added together and totaled. This sum is entered into the last line of page 1 on the TD1 form that says, “Total Claim Amount.”
Specifically, on the federal TD1 form, employees must add lines 1–12 together, and the total amount entered on line 13. For the provincial/territorial TD1 form, the number of lines will vary depending on whether you are in a province or territory. Both the federal and provincial/territorial governments have online worksheets that aid employees in calculating their claim amounts.
The total claim amount entered on these forms is used to determine the amount of income tax deducted per pay period from your employees’ gross pay amounts.
Beginning January 20, 2020, employers are no longer expected to provide paper TD1 forms to their employees. Employers are now expected to equip all new employees with this web page link to fill it out on their own accord.
Filling out the TD1 form is straightforward. By accounting for and estimating the potential tax credits available, you can get a picture of what you will owe.
TD1 forms are most often used when an employee starts working for the company or begins receiving pension benefits.
When you want to change the amounts you previously claimed, This could be a change in your situation where you have a spouse or eligible dependent you are supporting, or maybe you are eligible for the Disability Tax Credit.
When you want to claim the Northern Residents Deduction for living in a prescribed zone (prescribed northern zone or prescribed intermediate zone).
When you want to increase the amount of tax deducted at the source, so you don’t have to pay as much tax when you file your tax return, To change this deduction later, complete a new Form TD1. If you want to decrease the amount of tax deducted at source, use Form T1213 – Request to Reduce Tax Deductions at Source.
You don’t have to complete the form every year, only when your situation changes.
You only have 7 days after the change to submit a new form to your employer. If your employer does not have a TD1 form for you, he will make deductions allowing only for the basic personal amount.
Filling TD1 Form may look complex. It is advisable to seek guidance from a tax expert when you need to fill out this form. If you have any questions, feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
The information provided on this page is intended to provide general information. The information does not consider your situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
The Canada Revenue Agency (CRA) requires all individuals earning income in Canada to file a tax return and pay the appropriate income tax in any year their gross income exceeds certain levels, regardless of age. to file a tax return and pay the appropriate income tax in any year their gross income exceeds certain levels.
There is no specific age. It depends on whether you have earned enough income to do so. If you earn more than the amount of the personal exemption allowed by the Canada Revenue Agency within one tax year, you will need to report that income on an annual tax return.
The CRA tax law code requires filing a tax return based on income level. If you earn more than the amount of the personal exemption allowed by the Canada Revenue Agency within one tax year, you will need to report that income on an annual tax return. Special rules apply to income received by children who are claimed as dependents by other taxpayers.
Children can be six months, six years, or 16; they still have to file a tax return in Canada depending upon their income level. It depends on whether their earned, unearned, or combined income exceeds certain limits. The applicable standard deduction is also a factor. Earned income is what they make from a job. Unearned income, sometimes referred to as passive income, would be interest or dividends from investments.
As with any Canadian citizen, your child isn’t generally required to file a tax return if they have no tax owing. Usually, the amount earned by a minor child doesn’t hit the basic personal credit amount (around $11,000), meaning they won’t owe tax on their earnings. There are some exceptions.
Regarding tax returns for a child, how much the child earned from what activities will determine if your child needs to file taxes. Don’t worry — we’ll help you figure out what you and your child need to do.
Age does not affect your requirement to file a tax return. If you meet one of the above requirements, the CRA expects to receive an income tax return from you. The only time age might excuse you from filing a tax return is when you’re 65 or older and your income is below certain very low thresholds.
People with an income of under a certain amount aren't required to file a tax return because they won't owe any tax. It's very common to feel like you shouldn't need to file a return if you don't owe any tax. However, owing to tax and having filing requirements are two separate situations in the CRA's eyes.
Even if the amount of income from your child’s job doesn’t require a tax return, if a refund is coming, a return should be filed. A child should file a tax return for many reasons:
If your child had any income tax (or CPP premiums) deducted at the source, chances are they’ll receive those deductions back as a refund.
Filing a return sets up your child’s information with CRA for future years. Many first returns still need to be mailed in, as opposed to netfiled. Once the first return is processed, your child’s info will be filed, enabling them to file electronically in the future. Trust me, sending in a paper return for a high schooler is generally much easier than waiting until they have tuition credits or medical expenses to claim.
RRSP contribution room begins as soon as earned income is reported. Even if your child doesn’t purchase RRSP’s (which they can if they choose to, even though they are under 18), their contribution room will begin to accumulate as soon as they report their earned income on their tax return.
If you still need help, Filing Taxes professional accountants can go into more detail about how and when your child has to file a tax return. Whether you have a simple or complex tax situation, we've got you covered. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
Well, the first thing is don’t panic. There could be various reasons why a person wouldn’t have paid their taxes. You could owe a significant amount of money and not be able to afford to repay, business hardship, life threatening illness, paying taxes might have slipped out of mind due to any reason, you may not have filed your taxes at all. In any circumstance, if you owe a tax debt to the Canada Revenue Agency (CRA), this problem won’t just disappear.
Millions of Canadians file their tax returns late – and if you are one of them just get started with your tax filing. The longer you wait to come clean, the harder the CRA will hit you with penalties and interest payments, and the likelihood of the CRA seeing your avoidance as tax evasion increases. The CRA may not have contacted you yet, but it doesn’t mean it will never.
Late filing charges and penalties begin as soon as you miss the tax deadline (typically April 30 each year, for most Canadians) there is an automatic late filing penalty of 5 percent of tax owing. For each month you do not file, you are charged another one percent.
In case you did pay your taxes but less than the tax amount you actually owe, the CRA will charge the interest amount daily on the amount owing. These interests and penalties add up faster, which is why the only escape to harsh catch by CRA on late filing is to resolve your tax situation sooner than later. This is a very difficult issue to face so it is best to contact an accountant in advance.
If you have failed to file your income tax returns, GST/HST returns, or corporate T2 returns for several years, there is a remedy for it, even when many years have transpired. If the CRA has not contacted you regarding your late filings, you may be eligible for the Voluntary Disclosure Program. It is a tax amnesty program, which will allow CRA to waive some or all of the penalties and some of the interest levied. We can help you determine your eligibility for this program and submit your application.
It should be noted that this program may be utilized by a taxpayer only once in their lifetime (barring any other exceptional circumstances). This option does not apply to everyone and it does not reduce the overall amount that you owe. You are bound to show proof that you were unable to file or pay your taxes on time to apply for this program.
You may also be eligible to arrange a payment plan with CRA. However, to negotiate a payment plan with CRA, you have to provide many details about your financial situation, including your income, your debts, your expenses, and your assets. Using this information, the CRA will decide whether to offer you a payment plan and if yes, how much you will need to pay each month.
It is important to consider that CRA will not ever accept less than you owed to it. It will want its money first and prioritize it over your other financial obligations. For example, the CRA may instruct you to only pay the minimum balance on your credit card to apply additional money to your tax debt. This will shoot up your costs, as credit card interest rates are typically quite high.
Before you take any steps to deal with back taxes, it is important the services of a financial professional who understands Canadian income tax. With years of experience in corporate and personal tax law, Filing Taxes is your premier partner for all your tax needs in becoming up to date with your tax filing obligations and mitigating penalties through amnesty applications. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
i. Handle it yourself.
ii. Hire a tax accountant.
Let’s resolve this basic dilemma of every taxpayer together by reading through the article.
When is it appropriate to file taxes yourself in Canada?
The foremost factor to consider is whether you have enough time and knowledge to file your tax return. If the answer is yes, then in the first place move on with preparing a tax return yourself. Also if you have a simple tax situation or you have a single source of income and no complex investment portfolio then filing taxes on your own is worth it. If you are unsure about the tax stuff you can contact an accounting firm to get started with your taxes.
Again doing your taxes will save you money, you will have to pay less for a software package than to hire a qualified tax professional. The Canada Revenue Agency (CRA) has a handy list of free tax software that is certified to work with its NETFILE program for filing electronically. In addition, there are also free tax clinics to help Canadians with modest incomes and a simple tax situation. You can find a checklist of documents, a concise easy-to-use guide, and tax forms on CRA to assist the tax filers.
If you have a complicated tax scenario and you feel like you don’t understand the tax implications of your financial activities, it's time to get a tax professional on board. The incredible complexity of the tax system mostly overwhelms people so it’s worth hiring a tax accountant who can save you not only time and stress but also money. Tax accountants have plenty of experience navigating the multiplex world of taxes which means you don’t have to take stress about navigating that complexity yourself.
There is no doubt in adopting a “does it yourself” approach towards tax filing can save you the fees of a tax accountant. However, if you have a complex income portfolio then making mistakes on your tax forms could be detrimental to your tax return and should be avoided at all costs.
Tax accountants have their fingers on the pulse of changing trends and laws of the tax world. Tax laws change and evolve frequently hence if you don’t consider this constant state of flux you might end up making mistakes on your taxes and missing out on credits or deductions you might be eligible for. It’s your tax accountant's job to file your tax return considering the latest developments in the tax world with the most up-to-date information.
Clearly, there is ample justification to hire a tax accountant to do your taxes. But the question here is ‘How exactly do you do that?
Before you hire a tax professional you must consider some key traits of a good tax accountant.
Ensure the professional is specialized in taxes and holds a grip on recent or upcoming changes to the tax landscape. An experienced tax accountant will bring more expertise to the table which can make your taxes done, an easier and less stressful experience. The accountant must be a bookkeeper also.
A tax accountant must be keen to dig into your financials to understand your business. Tax consultancy demands customized service, a one-size-fits-all approach will not be appropriate to apply.
Keen attention to detail is imperative as there is a lot to keep track of. There is information to gather, forms to fill out deadlines to meet…a need to organize the influx of information.
The clarity in communication is vital for tax consultancy. It requires fostering open communication, keeping the client informed about what’s going on with his taxes, and being available to answer any queries client might have about the process.
Check for the audit protection service. Although the experienced tax accountant will be an armor against the CRA audit, to put it differently. Still if due to any circumstances audit is inevitable then the tax expert shall be knowledgeable enough to defend your rights. Specifically, be able to breeze you through the audit easily and keep more of your hard-earned money.
Once you figure out that your tax needs are to be supported by a competent tax accountant and you understand the characteristics of a professional. Who can do this for you the third question that arises
“How to find a good tax accountant?”
Narrow down the pool of potential tax accountants near you by searching through the following mediums
1. Referrals,
2. Online reviews,
3. List of tax accountants at professional networks,
4. List of tax practitioners at the state board of accountancy
Verify the credentials of the prospective Tax Accountant Toronto. If you got the tax preparers' names from the state board of accountancy, their credentials are most likely legitimate.
There are different categories of tax professionals. Figure out the best tax professional for you and your business.
Interview prospective tax accountants.
Ask for a price quote to make sure that the fees are in line with your budget.
In other words never sign a tax return before checking its accuracy, no matter who prepares your tax return; you are ultimately responsible for its contents.
Take enough time to hire a reputable tax expert considering all the guidelines mentioned in this article. The objective of hiring a tax professional is to make tax filing less stressful. Save time, and get some extra spending money from return.
If you are looking for a professional Tax Accountant in Toronto to file your personal or corporate taxes. In that case, feel free to reach out to Filing Taxes at 416-479-8532. Schedule your free 30-Min non-obligation tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
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