Personal Income Tax Season   |   March 1, 2019

It’s ‘that time’ of year once again, and we are ready to help you make it a more pleasant one.  As always, our firm of accounting professionals is looking forward to assisting you in the preparation of your 2018 personal income tax return.

General Information

As you have come to expect from F. H. Black & Company, we will accurately prepare your personal income tax return based on the financial information provided to us.  We would like to emphasize the fact that it is your responsibility to provide us with all information necessary to prepare a complete return.  To assist in compiling your tax information, we have prepared and attached a checklist as a guide. If you are not yet set up to receive direct deposits from the Canada Revenue Agency, please provide our office with a void cheque to allow you to receive direct payments from the CRA for all refunds and income tax benefits.

Privacy

Our firm respects the privacy of your personal information, that is, information that identifies you as an individual or that is associated with such identifying information.  By engaging our services, you agree to provide personal information necessary for us to meet your service requests.  Be assured, however, that your personal information will remain strictly confidential and will not be provided to any third party without your consent.

Deadlines

Please provide us with your personal tax information no later than March 31, 2019, to allow adequate time to complete your return.  Please be advised that CRA is assessing penalties for slips that are not reported on tax returns, even if the slips were not mailed to you.  NOTE:  If you have not received your T-slips by March 31, 2019, please wait for them and send all of your documents to us at the same time.

Should you have any questions or concerns, please do not hesitate to contact us.

 

FHB’s Personal Income Tax (T1) Checklist

Please consider the following:
  1.  Please provide the following information if you are a new personal tax client or advise us of any changes if you are an existing client.  Please note that we will keep all income tax slips until the following tax year for purposes of responding to any CRA processing reviews on your behalf:
  • Full name
  • Address
  • S.I.N.
  • Date of birth
  • Marital/common-law status as well as spouse’s net income, SIN, and date of birth
  • Family additions in the year, including date of birth
  • Number of dependants, including date of birth and net income
  • Changes in family circumstances that could affect the Goods and Services Tax Credit, such as births, deaths, marriages, reaching the age of 19, and becoming or ceasing to be a resident of Canada
  • Province of residence as at December 31, 2018, if other than Manitoba
  • Residency, if other than Canadian (i.e., U.S.)
  • Details regarding residence in a prescribed area which qualifies for the Isolated Area Deduction, if applicable
  • Details of foreign property owned at any time in 2018 including cash, stocks, trusts, partnerships, real estate, tangible and intangible property, etc.
  1.  Please provide the following income/expense-related information, where applicable:
  • All T4 slips (employment income)
  • All other information slips (e.g., T3, T5, T4A, T4AP, T4E, T4RSP, etc.)
  • Unincorporated business income and expenses
  • Support for rental income and expenses respecting principal residence and/or other rental properties
  • Deductible commission expenses (e.g., travel expenses, automobile expenses, office-in-home expenses, etc.)
  • Employment-related expenses (provide T2200 – Declaration of Conditions of Employment)
  • Other employment income (including stock option plans and election form T1212)
  • Details of income from, or distributions to, foreign entities such as foreign affiliates and trusts.
  • Partnership income information/slips
  • Pension plan contributions
  • Details of income or expense from alimony, separation allowances, child support, etc.
  • Child care expense receipts
  • Child fitness receipts for children under 16 years of age and young adults ages 16 through 24
  • Child arts activities receipts for children under 16 years of age
  • Adoption-related expenses
  • RRSP receipts, including details regarding income and withdrawals (e.g., Home Buyers’ Plan withdrawals and repayments, Lifelong Learning Plan withdrawals and repayments)
  • Disability support expenses (speech, sight, hearing, learning aids for impaired individuals, and attendant care expenses) for you or any of your dependents
  • Registered Disability Savings Plan (RDSP) information, including details regarding contributions and payments
  • Medical expense receipts (including travel expenses and medical-related modifications to a new or existing home)
  • Registered Education Savings Plan (RESP) information, including details regarding contributions and payments
  • Education tuition slips/receipts for qualifying students (i.e., form T2202A)
  • Statement of interest paid on student loans and investment loans
  • Scholarships, fellowships, bursaries, etc.
  • The total cost of tools bought by tradesperson/apprentice in 2018
  • Moving expense receipts (including costs of maintaining a vacant former residence)
  • Details of capital gains and losses realized in 2018, including actual date of disposition
  • Details on the sale of a principal residence in 2018, including date of acquisition, date of disposition, sale proceeds, and original cost
  • Details of previous capital gain exemptions claimed, business investment losses, and cumulative net investment loss accounts
  • Sale proceeds and cost information respecting sale or deemed sale of stocks, bonds, or real estate
  • Investment counsel fees respecting non-registered investments
  • Accounting fees respecting bookkeeping/accounting for investments
  • Receipts for charitable donations
  • Receipts for political contributions
  • Receipts for professional or union dues
  • Research and development expenses
Please provide the following CRA-related information, where applicable:
  • CRA Notice of Assessment respecting the 2017 tax year
  • CRA statement of tax instalments for the 2018 tax year
  • Any 2018 personalized tax information CRA may have sent you
  • Please attach a void cheque or your bank branch, institution, and account number for direct deposit
Please also note the following:
  • Since 2017, taxpayers have been required to report basic information (date of acquisition, proceeds of disposition and description of the property) when they sell their principal residence, to claim the full principal residence exemption.
  • In July 2017, the Universal Child Care Benefit and Canada Child Tax Benefit were replaced by the Canada Child Benefit, which is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age. Eligible taxpayers must apply in order to receive payments.
  • For 2018, the Federal Child Fitness Tax Credit and the Child Arts Tax Credit have been eliminated. Manitoba provincial credits to a maximum of $500 for each are still available.
  • Since 2017, employees who are “eligible educators” will be permitted to claim a 15% refundable tax credit on eligible supply expenditures made up to an amount of $1,000.
  • Since 2014, Canadian Resident taxpayers who owned specified foreign property costing more than $100,000 at any time during the year, are required to file form T1135 Foreign Income Verification Statement along with their personal income tax return. Failure to file form T1135 on time may result in significant penalties.
  • Since 2009, the Home Buyers’ Plan allows taxpayers to withdraw funds (maximum of $25,000) from their RRSPs for the purchase of their principal residence without having to pay tax on the withdrawal.
  • If you are a first-time home buyer, a tax credit up to $750 ($5,000 x 15%) is available for qualifying homes acquired after January 27, 2009.
  • If you or any one of your dependents are/is disabled, provide Form T2201 – disability tax credit certificate.  This also includes extensive therapy such as kidney dialysis and certain cystic fibrosis therapy.  Also, the transfer rules include relatives such as parents, grandparents, child, grandchild, brothers, sisters, aunts, uncles, nephews, or nieces.  Persons with disabilities may also receive tax relief for the cost of disability support (e.g., sign language services, talking textbooks, etc.) incurred for the purpose of employment or education.
  • If you provided in-home care for a parent/grandparent (including in-laws) who is 65 years of age (or over) or for an infirm dependent relative, a federal tax credit may be available.  Also, the caregiver may claim related training costs as a medical expense credit.
  • Since 2008, any person eligible for the disability tax credit (or their parent or legal representative) may establish a special savings plan which receives government grants.
  • Individuals 18 years of age and older may deposit up to $5,500 per year into a Tax-Free Savings Account. This amount increases to $6,000 for 2019.
  • Children born on or after January 1, 2004 to low and middle-income parents may be entitled to a Canada Learning Bond of $500 in the initial year and $100 per year until the age 15.
  • Individuals carrying on a business may deduct amounts paid for Private Health Service Plan coverage.
  • An investment tax credit is available in respect of each eligible apprentice employed in one of the 45 Red Seal Trades.  Also, a $1,000 grant is available for first and second-year apprentices effective January 1, 2007.
  • The age limit for maturing Registered Pension Plans, Registered Retirement Savings Plans, and Deferred Profit Sharing Plans is 71 years of age.
  • Spouses may jointly elect to have up to 50% of certain pension income reported by the other spouse.
  • As of January 1, 2018, if you are receiving income (salary or dividends) from a family or related business and are not actively employed by the business, you may be subject to different (higher) tax rates on that income.

Please advise us if you received income from a related business during the year so we are able to review the facts with you to determine the correct tax treatment.

Contact Us

E: info@fhblack.com
P: 204-949-9113
F: 204-949-0497
36 Roslyn Road
Winnipeg, MB R3L 0G6

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Contact Us

E: info@fhblack.com
P: 204-949-9113
F: 204-949-0497
36 Roslyn Road
Winnipeg, MB R3L 0G6

Follow Us

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