They say you should always open with a joke – so here you go.
Does February March?
No but April May.
It’s almost your favorite time of year – TAX TIME!! (You know you have missed us & have been wanting to check out our new digs) We thought that we’d pass along some tips to possibly make things a little easier on your pocketbook.
Here are somethings that you can do to help us out:
-Don’t submit your paperwork, documents, receipts, T-slips etc. until you are certain that you have everything. There are increased costs if you need to adjust your return after it has been filed. CRA may also impose interest and penalties on unreported (missed) income, even if you didn’t receive the slip. If you check your previous year’s tax return slip summary, it may help you catch them. If you didn’t download your tax return from E-courier, it remains available for 2 more years, you can login in and download the entire return now.
-We miss your smiling faces but……. we would prefer you to submit your documents electronically and in the correct format. We can only accept .pdf format scans, NOT .jpeg, .tiff or .png. For scans submitted in an incorrect format, there will be a $10/page fee for converting to the correct format. This can quickly add up. Also, please proof your scans, if your scan isn’t clear enough, we can’t convert it. Most iPhones have a built-in scanner & there are good, free & paid android apps (I like Lens). Scan each receipt as you get it, saving it in a cloud or other digital folder. This means you won’t have to chase those little slips of paper each month. Please back it up or keep a 2nd copy – technology is wonderful if it works.
– This year we will have 2 small scanners set up in our office for your use. If you want to scan your documents but don’t have access to the tech or software, we can help. They will be available during office hours, and we can guide you through the process. We also have shredding bins available for your documents if you wish to have us shred them for you. We are offering this free of charge and if people find value in it, we will look at offering it year-round to our clients.
-Set up your “My CRA Account”, they are really pushing hard for everyone to have one. It enables you to see what your balances owing, account credits, notices of assessment, RRSP and TFSA limits are, as well as what slips CRA has for current and past tax years. If you request that we get any of this information from CRA for you, there will be a $25 charge each time we access the system on your behalf.
-For paper copies of returns must be requested when you drop off your tax information and will have a $25/ return charge this year. Effective Jan 1/24, CRA implemented a penalty on preparers for each paper filed return. If your return can’t be efiled because we don’t have your signed consent forms, we will be passing this fee onto you.
We do not have access to all of your income slips, and none of the ones that save you tax dollars for a few reasons:
1- Not all income slips may be available on CRA before the filing deadline. You are the only one that knows where you worked, invested, sold stock etc. If you do not track it, we cannot enter the information. This can result in those previously mentioned increased costs, interest, and penalties, or missing credits.
2- Medical, private health premiums, donations, childcare, preschool and school lunch supervision are all receipts given directly to or accessible solely by you which reduce your income taxes owing.
3-RESP withdrawals will generate an income slip and may become taxable depending on your yearly income. The penalty for not reporting this income is 20%.
4- Surprisingly, it is common that we find out a year or two down the road about life events with tax implications. Getting married or divorced, having a child, a long-term illness, buying or selling a home can all have an impact on your tax situation and available tax credits. We cannot help you save unless we know, plus we would like to have current contact information.
January’s Omni trivia question was about the beautiful bridge picture in the meeting room of our last 3 offices. This picture was actually taken by Bernadette. It is of the East Coulee Bridge, a rare example of a wooden Howe Truss bridge. A beautiful drive in the summer to check out the town and Atlas Mine. On your way through, stop in for lunch or a beverage at the Last Chance Saloon. It’s full of early 1900’s memorabilia and a popular stop for bike and car enthusiasts.
Now for our Winter Wine Winners!
1- John Johnson
2- Mike Hughes
3- Lynne Davies
4- Peter Ramsay
For all those small business owners, constantly looking for ways to both save and make money. At the same time there is that never-ending to-do list that’s part of running your business. Let’s state the obvious – thinking about taxes is the last thing you want to spend time on. However, they are an essential part of any successful business operation and can either save or cost you money.
You know you can write off expenses like professional fees and office supplies, but there may be some tax deductions you aren’t aware of too.
There is so much information on this topic, we have made it a separate post on our website:
https://omnimanagementservices.com/2024/02/23/expenses-for-small-businesses/
Also, if any of you business owners are looking for reliable, affordable accounting software – we have recently partnered with Xero, and would love to pass the savings along to our valued clients.
Finally, the Key Point of all my rambling is: Keep and claim as many business expenses as you can. You can only deduct the portion of your expenses spent to run your business. This is why it is so important to make sure to keep track of and claim every business expense, even the small ones. Every receipt adds up, and together, they may drop you into a lower tax bracket, resulting in more money in your and your business’ pocket at the end of the year.
Here is Brenda’s last joke of February –
When is the best time to wash your slinky?
During spring cleaning!
As always, we are here to help by phone – 403-291-9047, fax 587-393-4717, in person at our office #9 2611 37 Ave NE Calgary or by email Reception@omnimanagement.net