About.com Tax Time

An Overview of Canadian Income Taxes

Tue, 21 Apr 2009 00:59:04 +0000

Canadian have until April 30th to file their income tax returns. Susan Munroe, About.com's Guide to Canada Online, covers the essential information for filing a Canadian tax return, and provides tips on deductions and tax credits.

The tax return can be filed on paper tax forms or electronically using software. Here's tips on where to find a Canadian income tax package, as well as reviews of the top five Canadian tax software programs. The Canadian system requires the use of a security code found on your T1 slips to be eligible for the NETFILE service.

Canada also allows various deductions against the income tax, such as for charity and retirement savings. Charitable donations are allowed "up to 75 percent of your net income." And tax-deductible contributions of up to $19,000 can be made to Registered Retirement Savings Plan.

There's also tax credits to consider as well. One relatively new tax credit is the Children's Fitness Credit for enrolling kids under age 16 in a physical fitness program.

The Canadian Revenue Agency has online services available for taxpayers. Canadians can check the status of their refund, and obtain information about their retirement contribution limits, check their account balances, update their address, set up a payment plan, or disagree with a tax assessment using the CRA's my account services.

An Overview of Canadian Income Taxes originally appeared on About.com Tax Time on Tuesday, April 21st, 2009 at 00:59:04.

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Canadian Tax-Free Savings Accounts

Mon, 20 Apr 2009 21:56:56 +0000

Canada has introduced a new type of tax-free account, and I think this is an idea worth implementing here in the US as well.

Here's the details. Canadians can save up to $5,000 a year in tax-free savings account. Withdrawals can be made at any time, and the funds used for any purpose. There don't seem to be a whole lots of limitations and restrictions, like there are with Roth individual retirement accounts in the US. Contributions to these accounts are not tax deductible, but there's no tax on the earnings and interest. The part I really like is that withdrawals can be made at any time for any reason. That sure beats the 10% penalty Americans pay if they need to cash out their retirement plan early to cover a financial emergency.

Canadian Tax-Free Savings Accounts originally appeared on About.com Tax Time on Monday, April 20th, 2009 at 21:56:56.

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A Peek At What's Ahead for Businesses in 2009

Sat, 18 Apr 2009 00:32:39 +0000

Small business owners can plan ahead to account for several changes in the tax code for 2009, including updated mileage figures, revised tax withholding tables for payroll, and increased wage limits for Social Security.

Related small business information:

A Peek At What's Ahead for Businesses in 2009 originally appeared on About.com Tax Time on Saturday, April 18th, 2009 at 00:32:39.

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Tax Day Tax Tips

Wed, 15 Apr 2009 00:04:45 +0000

Here's some quick links to help you complete your tax tasks today.

Tax Day Tax Tips originally appeared on About.com Tax Time on Wednesday, April 15th, 2009 at 00:04:45.

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Funding an IRA

Tue, 14 Apr 2009 18:07:55 +0000

April 15th is the last day to make a contribution to an individual retirement account for 2008. If you later change your mind about funding an IRA or find out you're not eligible to contribute to an IRA, you can withdraw the contribution by October 15th (if you get an extension). If you are not sure about whether to fund the IRA, funding now and getting an extension will give you an extra six months to decide if the IRA was right for you. Self-employed people have until October 15th to fund a SEP-IRA, but only if they file an extension.

More information:

Funding an IRA originally appeared on About.com Tax Time on Tuesday, April 14th, 2009 at 18:07:55.

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Tips for Finishing up You Taxes This Weekend

Sat, 11 Apr 2009 19:55:20 +0000

I'm not a big fan of stress. Yes, April is a stressful time in a tax office. But knowing how to focus on what's most important can help you file your tax return confidently.

If you haven't started your tax return at all, I want to you by-pass all the usual steps like scrambling to find a decent software program or downloading the forms, and go straight to one of these very helpful (and quick to use) applets for estimating your taxes.

Spend a few minutes using one of those Web-based applications, and you'll get a rough estimate of your refund or balance due. Make notes of those numbers, and then go file an extension. If you owe, try to pay the balance due that you estimated. If you have a refund, simply mail in the extension voucher. Filling out the extension form itself takes about a minute. You can also file an extension online in about 10 minutes or less (and for free).

All told, this should take you no more than 30 minutes. With an extension, you'll have until October 15th to file your return. As long as you've paid your tax in full by April 15th, the IRS won't charge you any penalties.

And now that you have eliminated the enormous pressure of meeting the April 15th deadline, you can now focus on picking the best tax software for your needs, finding the tax forms and instructions you might need, or finding more tax deductions or credits that you might qualify for.

Tips for Finishing up You Taxes This Weekend originally appeared on About.com Tax Time on Saturday, April 11th, 2009 at 19:55:20.

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Filing Tax Extensions

Sat, 11 Apr 2009 15:05:37 +0000

In a hurry? Here's six ways you can file your tax extension fast, in 10 minutes or less.

Filing Tax Extensions originally appeared on About.com Tax Time on Saturday, April 11th, 2009 at 15:05:37.

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Tax Credit for Saving for Retirement

Fri, 10 Apr 2009 00:44:33 +0000

Did you participate in a 401(k) or 403(b) plan or fund an IRA? If so, you may be eligible for the Saver's Credit. This is a federal tax credit available to people earning $26,000 or less (or $52,000 for married couples), and the credit is based on a percent of your retirement savings.

Tax Credit for Saving for Retirement originally appeared on About.com Tax Time on Friday, April 10th, 2009 at 00:44:33.

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Tax Freedom Day Comes Early in 2009

Tue, 07 Apr 2009 17:38:07 +0000

"That magical day of the year when a majority of Americans have earned enough money to pay their federal, local and state taxes, will come on April 13 this year, or 8 days earlier than in 2008," reports About.com's US Government Information Guide Robert Longley.

Longley points out that the economic downturn and a spate of tax cutting measures are combining to make taxes slightly more affordable, taking 28.2 percent of our collective income.

Tax Freedom Day Comes Early in 2009 originally appeared on About.com Tax Time on Tuesday, April 7th, 2009 at 17:38:07.

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Finding Free Tax Software

Mon, 06 Apr 2009 00:55:18 +0000

Looking for software that's free and easy to use? Many taxpayers are eligible to use free tax software. The top choices here are the free versions of TurboTax, TaxCut or TaxACT, all of which are pretty easy to use. Software providers also provide access to tax prep software free of charge through the Free File Alliance with the IRS.

More info:

Finding Free Tax Software originally appeared on About.com Tax Time on Monday, April 6th, 2009 at 00:55:18.

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