Personal Income Tax Filing Scarborough

FAQs Regarding Personal Income Tax Filing

When the time of filing personal income tax hovers on your head, there are certain doubts that are lurking behind the anticipated process. There are several questions that can actually haunt you and you really don’t have accurate answers to the. What further complicates the situation is that you need the latest and complete information when it comes to personal income tax filing in Scarborough.

The queries related to income tax range from healthy premiums, life insurance deductions and what not. So, in this post, we are going to try our level best to answer the frequently asked questions about personal income tax.

FAQ 1 What is better for me: Tax Free Savings Account or Registered Retirement Savings Plan?

If your financial situation allows you, go for both. But in a case, you have to make choice, then let us understand the pros and cons of both. If you want to be in the category of lower tax, go for RRSP. But once you withdraw from the plan, it would be taxed next time. Whereas TFSA has no such limitation and none of the amount in TFSA is subjected to taxes.

FAQ 2 When is the perfect time to relocate, keeping in mind the taxation slab?

According to the policies, you fall under the category of taxation rate of the State of which you are resident of on December 31 of any given year. So before relocating include finding out income tax rates in your home work list.

FAQ 3 Can I claim elderly parents as dependents?

If your parents are mentally or physically unfit, and they are living with you and you have net income of less than $19,824, you can claim for Caregiver Amount. Even your kids who are below the age of 18 years and your grandparents are dependent ones as well.

FAQ 4 How does the refund depend on the taxes I have paid the whole year?

Yes, your refund depends upon the taxes you pay the whole year. You will get refunds only if you have paid income tax exceeding the amount you should pay or if you have paid the income taxes within the year. The refunds are calculated according your taxable income.

But apart from that, there are certain other complexities that need the expert advice of a professional. In case, if you are worried about personal income tax filing in Scarborough, you should engage the services of Z Rahman Professional Corporation, who are indeed professionals in taxing and accounting.