Income Tax Filing Scarborough

Personal Income Tax Returns in Scarborough- everything comes down to refunds

Personal Income Taxreturn filing is important. Not just because CRA database should be up to date but also because filing return makes you eligible for refunds as per tax laws.

As the income tax return filing date is nearing, knowledge of refunds is a must. After all, it all comes down to refunds. Especially if you're a first time taxpayer. ZRPC, the leading firm for income tax return filing in Scarborough, tells about all that you need to know about refunds before you file for the previous financial year.

1. Tax deductible contributions and conditions

To calculate your refund, you need to first of all add up your income from all sources, including salary, income from home business, capital gains from selling of an asset, income from investments etc.

Even though tax refunds vary from person to person according to sources of income, the common deductions available in the net income section include child care, moving expenses, pension contributions by self employed individuals, and contributions to RRSP.

You can even claim losses that you incurred in previous years like loss of a job or loss in business. You're also applicable for deductions of some portion of your expenses if you're running a home based business.

2. When is the notice of assessment for refunds issued by CRA?

The timeline varies on the mode of return filing. If you file through My Account, assessment notice is issued within 2 weeks of receiving your electronically filed return. In case of paper filed return, this time extends to 8 weeks. These timelines pertain only when you've filed your return on or before due date.

3. What are the reasons of delayed refunds?

The most common reasons for refund delay include :

●     In case you owe a balance payment;

●     Income Tax refunds fall under the category of Garnishable Moneys that can be directly paid towards family support according to “Family Support Order and Agreements Garnishment Regulations”;

●     Paid against your outstanding GST/HST returns from a sole proprietorship or partnership;

●     If the refund is $2 or less.

You can check the status of your refunds through My Account service or via MyCRA app. You can transfer your refund towards your instalment account but you cannot transfer this refund in someone else's name or account. Nor can you settle someone else's debt through your refund.

CRA also pays daily compound interest on your income tax refund for previous financial year from the following three dates

●     The due date for filing income tax return

●     From the 31st day after you file your return

●     The day just after when you overpaid your taxes.

This is the important piece of information regarding income tax refund that every taxpayer must know about. For timely personal income tax return filing in Scarborough, contact ZRPC today.