Whether you are an entrepreneur, a self-employed person or an employee, you must file a tax return for Quebec and another for Canada. Even if you have no income to declare, it is to your advantage to file a tax return in order to benefit from certain refundable tax credits.
You have many tasks to complete during tax season in order to file an accurate and complete tax return. In particular, you need to gather your tax documents related to your earned income and investment income. Keep reading to discover what you need to know about the documentation required for your tax returns.
All individuals residing in Quebec with income must file an income tax return with the governments of Quebec and Canada.
In Quebec and Canada, the taxpayer must provide the necessary proof of income and expenses upon request, as well as calculate the amount of tax to be paid according to the rates in effect. April 30th of each year is the deadline for paying your taxes. It is also the deadline for filing your federal and provincial income tax return for the previous year, or June 30 for businesses and February 28 to pay them.
Accounting is not as boring as it sounds
Several documents and tax information must be provided to file a tax return:
In Quebec, there are different sources of income that you must declare, including
The total taxable amount is the sum of the amounts deducted from each income bracket.
If you feel that the amount of tax withheld from your employment income each month is insufficient, you may request that it be increased. Increasing the amount of tax withheld at source on income subject to tax is possible, especially if you have income beyond employment income such as business income or taxable annuity income such as QPP benefits or Old Age Security pension.
To do so, you must complete one of the following forms:
In order to prepare a tax return as a self-employed, you need:
Since business tax returns allow for many additional deductions, it is often recommended that you use the services of a CPA. They will ensure that you have taken into account all the deductions and credits you are entitled to.
The nature of your income and the legal form of your business will influence the type of tax return you file. The rules are different for individuals, corporations and non-profit organizations.
To avoid the stress of tax season overload, you need to prepare and organize your accounting records throughout the year:
Since corporate tax filing is a process, don't leave tax preparation to deadlines. Set deadlines for each task, such as:
You can deduct most of the expenses you incur to earn business income. Don't forget to keep all your invoices to take advantage of these deductions. Don't overlook anything, even small amounts can add up at the end of the year:
If you are required to pay instalments on your business income, you should budget for them to avoid any surprises on the day you have to pay them.
To minimise the time spent on filing your taxes, you can access the Canada Revenue Agency and Revenu Québec websites to download and complete the forms. You can also create your tax file and make payments online through these portals.
In addition, in Canada, entrepreneurs tend to use accounting software that allows them to prepare accounting documents and submit returns electronically.
If you want to get through tax season with peace of mind, you can trust your company's tax return to our CPA team. Stamped provides you with a collaborative platform that integrates with powerful software such as Xero and Quickbooks Online. Our team combines accounting expertise with artificial intelligence technology.
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