Happy Mother's Day to all moms out there! Hope you are all doing well. 

2024 Tax Season flew-by fast, like a whirlwind.  I want to begin by thanking everyone who trusted me with your tax returns. I am grateful for the opportunity! :)

Let's get to this month's tax and money tips. I want to share frequently asked questions this tax season. Every year there seems to be a theme. I wish I started journaling  frequently asked questions every tax season. Anyhow, here are some frequently asked questions from this tax season.


 1. Can you file my taxes by April 30th? It's the deadline, correct? 
Answer: 
Yes, the tax deadline was April 30th, but remember that if you or your spouse (or common-law partner) are a sole proprietor, you have an automatic "extension." You have until June 17, 2024 to file your 2023 tax return. However, balance owing should have been paid by April 30th to avoid interest. To overestimate your balance owing, take your gross revenue and multiply by 30%. Remit that portion to CRA as your tax for 2023 tax return. If you overpay, it will be returned to you as a refund. If you underpay, you can pay the difference after  you file your tax return. 
PS: If you missed April 30th payment, you can still make an estimated payment now and file your 2023 taxes later.


 2a. Can I still claim the $2/day work from home? 
Answer: 
During Covid time, CRA allowed a simplified $2/day claim for everyone who worked from home. No receipt is needed. For the 2023 tax return, it is back to the old detailed method where one would need a T2200 form from his/her employer and keep all receipts. In general, if you are renting, you would be able to claim a larger amount than those who own their home. Why? Because rent is included as part of home office expenses whereas property taxes and mortgage interest are not, unless you are a commissioned employee. Due to the amount of work of collecting and keeping a record of expenses such as BC Hydro statements, Fortis BC statements, etc., some people chose to forego this claim because the additional refund did not justify their time and/or my additional fee. Sometimes you may not want to claim all the deductions you are entitled to.

 2b. Why should I have a car log? None of my co-workers keep a log book. 
Answer: 
If you are claiming car expenses as part of your employment expenses (must have T2200 form from your employer), you MUST have a car log book that shows:
- date of travel,
- where you are traveling to,
- whom you met,
- purpose of travel, and
- km driven.
In addition, you need to also record km driven for business and km driven for the whole year. Further, you need to have all your receipts in your record such as fuel, car maintenance, parking, etc. Employment expenses is a topic commonly re-assessed by CRA, so you must be ready with all your records in case CRA asks for it.


 3. What are my options if I can't afford your tax preparation fee? 
Answer: 
If you are a new entrepreneur and do not have a budget to hire someone to do your tax return, I suggest investing some time learning about allowable business expenses and when to register for and charge GST (or if you need to register for GST). Then use Turbo Tax for your tax return. Purchase their Assist & Review program - you pay one time and you get unlimited reviews of your tax return. I think this may be the most economical way for new entrepreneurs to complete their tax returns. Please note that I am not affiliated with Turbo Tax. I did work for them in the past and I think they may be the only company that offers unlimited review for those who DIY their tax returns.

Here are websites for new entrepreneurs to read.
- Business expenses you can deduct
- When to register and start charging GST/HST
- Turbo Tax Assist and Review program


That's all for May. Have a great rest of the month!

Hello everyone! 2024 Tax Season will soon be over. Have you filed your tax return? I have and what a relief! This is true even for myself, as someone who has been doing tax returns for more than 11 tax seasons - it is still a chore and it is now off my task list. :) 

If you are thinking of hiring someone to file your taxes, make the booking now and provide your documents as soon as possible. Time is running out. If you have a refund, it's technically ok to file late. If you have balance owing, you should file by the deadline - April 30, 2024.  If you or your spouse are self-employed, your deadline is June 17, 2024 for your 2023 tax return. Remember that balance owing is due April 30, 2024 regardless of your tax filing deadline.

Here are tips for April
1a. Please gather all your receipts before you start working on your tax return. The same applies if you hire someone else to work on your tax return. It would be easier and more efficient to do your tax return in one sitting than to keep re-visiting your tax return because you missed one or two documents.

1b. When you are done with your tax return, don't throw away your receipts and documents. You must keep them for at least 6 years. If you have receipts on thermal paper, scan or photocopy them so they are still legible a few years from now. You can choose to scan and store electronic copy. Remember that CRA (Canada Revenue Agency) has 3 years from the time you file your tax return to assess your tax return. They may ask you to send in receipts to support claims as reported in your tax return. 

2. After you have filed your tax return, you should receive NOA (Notice of Assessment). Keep it in a safe place. If you receive a letter requesting information, please respond within the time period as written in the letter. Do not ignore the letter.

3a. Here is a common question I received this tax season. Can I still claim the $2/day work from home deduction? The answer is no. The $2/day was for Covid time period. We are now back to the detailed home office expense deduction. You would need a T2200 form from your employer in order to claim home office expenses.

3b. New for 2023 tax return: For those who are in BC, renting and have combined annual household income under $80,000, don't forget to claim BC Renter's Tax Credit by filling out form BC479 page 3. Check out this link for other BC tax credits.
For Ontario tax credits, check out ON tax credits.

4. When you login to your My Account, don't forget to check the Uncashed Cheque section. You may have "newly found" money there. :) If you have a tax representative, he/she can check it for you too. To claim the Uncashed Cheque, you would need to login to your My Account, fill out a form, and submit the form directly to CRA. 

5. Beware of fake Prudent Money Coach social media accounts! Earlier this week, a friend asked if my Instagram account was hacked because she received a follow request from a new account. This is the second time I was informed of a fake account. Back in September 2023, one of my clients messaged me asking if my Instagram account was hacked. It wasn't! The fake account claimed that my old account was hacked and asked everyone to follow the "new account." Please be careful.

Lastly, I want to thank everyone who trusted me with their tax filings. A few of you have asked if you could leave me a review. Thank you very much! I have to admit that I'm still searching for the best place to ask clients to leave a review. For now, I have a page on my website to display testimonials, under Services. Also, a few clients and an individual I met at networking events actually left me reviews on my business Facebook page. If you know of the best place where clients can leave reviews for me, please let me know. Thank you. :)

That's all for April. Have a great month!