Home Self Employed Tax Payer

Self Employed Tax Payer

Telephone: 647-951-4852 Ext.2

Email: info@downtowntorontotaxreturnpreparation.com

Preparing your taxes if you’re a self-employed taxpayer can be time-consuming and challenging, especially if you are unsure where all the paperwork is. Your priority is running your business.

Many of us have had less income or even no income from our business during COVID. We must keep track of losses to be utilized against other income or going forward as the economy improves.

If the filing deadline is looming over your head, and you find yourself unprepared, our advice is to take on one thing at a time. Best way to start? Organize all your paperwork first.

Contact Downtown Toronto Tax Return Preparation at 647-951-4852 Ext.2 during business hours. If you do receive voice mail, please do leave message with best day and time to call. Downtown Toronto Tax Return Preparation has 5 Convenient locations in the downtown Toronto Area.

The Covid-19 Pandemic has made the simplest of tasks that much more challenging. To make things easier, depending on your situation, we offer the following methods of completing your income tax filing.

Methods of completing your income tax filing – Self Employed Tax Payer

  • Postal Mail
  • Courier (Extra Charges Apply)
  • Email
  • In Person

Downtown Toronto Tax Return Preparation (Self Employed Tax Payer) 5 Convenient Locations:

Downtown Toronto Central Location (Yonge & Richmond)
151 Yonge St
11th Floor
Toronto ON M5C 2W7

Downtown Toronto North Location (Yonge & Bloor)
2 Bloor St W
Suite 700
Toronto ON M4W 3E2

Downtown Toronto East Location (Queen and Church)
111 Queen Street East
South Building
Suite 450
Toronto ON M5C 1S1

Downtown Toronto West Location (University and Dundas)
439 University Ave
5th Floor
Toronto ON M5G 1Y8

Downtown Toronto South Location (Bay St and Queens Quay)
88 Queens Quay West
RBC Water Park Place
Suite 2500
Toronto ON M5J 0B8

Self Employed Tax Payer Downtown Toronto Tax Return Preparation
Self Employed Tax Payer Downtown Toronto Tax Return Preparation – 5 Convenient Downtown Toronto Locations

We are experienced in various types of income tax filing. Whether it is employment income, self-employment income, multiple years of non filed tax returns, or you need a review of a previous year’s tax return to make sure it was correctly done.

We have five convenient location in the downtown Toronto area. They are located close proximity to TTC stations, public parking and usually not to far of a walk from work places in the area.

Types of tax return preparation:

Personal Tax Return Preparation

Corporate Tax Return Preparation

Non-Resident Tax Return Preparation

Self Employed and Small Business Tax Return Preparation

Student Tax Return Preparation

US Tax Return Preparation

Trust & Estate Tax Return Preparation

Book an appointment to get ready for the 2022 Tax Season. 

How does our Tax Preparation work for the Self Employed Tax Payer?

  1. Call and speak with an advisor if, our service is right for you.
  1. Our office will send you a client questionnaire and new client form to be filled out.
  1. Gather and organize what documents you need for us to complete your return.
  1. Options to drop off documents.
  • Due to Covid 19, any documents will be uploaded using email only
  1. An estimate of fees will be provided for your approval, no work will begin before client approval.
  1. Due to increased volumes during tax season your return may take longer than usual to complete.
  1. When your return is ready, our office will contact you to go over your tax return, if necessary.  An e-invoice will be sent, once paid your return will be uploaded to the Canada Revenue Agency. 

Downtown Toronto Tax Return Preparation

Self Employed Tax Payer

Personal Tax
Corporate Tax
US Tax Returns
Non Resident Tax Returns
Unfiled Tax Returns
Non Filing
Back Filing
Prior Year Tax Filing
CRA Requests
CRA Letters
Demand to file
Overdue Tax Returns
CRA Audit Letters
CRA Review Letters
Unreported Income
Unreported Offshore Income
T1 Adjustments
Tax Return Correction
Tax Return Review
Foreign Income
Investments
Rental Income
Business Tax Return
Unincorporated Business
Sole Proprietor (Self Employed Tax Payer)
Small Business
Self Contractor

Documents you’ll need to file your tax return if you’re a self-employed taxpayer or a small business owner, along with a list of business deductions you can use to lower your tax bill. Please note these are only common examples. Every business is unique and different expenses may be part of your small business that is not listed. Call and speak to one of our tax advisors for more information at (647) 951-4852 Ext.2

  • Deposit slips
  • Bank statements
  • Income records
    • Sales invoices
    • Receipts
    • Bank deposit slips
    • Fee statements
    • Contracts
  • If you have employees
    • T4: Summary of Remuneration Paid
    • T4A: Summary of pension, retirement, annuity and other income
  • If you make payments to subcontractors
    • T5018: Statement of Contract Payments
  • If you’re in a partnership
    • T5013: Partnership information return
  • If you’re a corporation
    • T2: Incorporation income tax return
    • Shareholder transactions and dividends
  • Receipts on any capital purchases or sales in 2020
  • Worker’s compensation payments or benefits
  • Installments made for income tax, GST/HST/PST and payroll
  • Payroll, source deductions and taxable benefits for employees
  • Individual slips and receipts
    • 2019 tax return, Notice of Assessment and any other CRA correspondence
  • Investment information:
    • RRSP contribution slips
    • T3 slips
    • T5 slips
  • If you have other income:
    • T4: Statement of remuneration paid
    • T4A: Pension, retirement, annuity and other income
  • Receipts for eligible medical expenses
  • Receipts for charitable donations
  • Tuition or educational expenses
  • Interest paid on student loans
  • Child care expenses
  • Moving expenses

List of Common Small Business Deductions – Self Employed Tax Payer Downtown Toronto

  • Advertising
  • Bad debts
  • Business taxes, licenses and memberships
  • Business use of home expenses
    • Cleaning materials
    • Electricity
    • Heating
    • Home insurance
    • Mortgage interest
    • Property taxes
  • Interest and bank charges
  • Insurance premiums
  • Legal and accounting fees
  • Meals and entertainment
  • Motor vehicle expenses
  • Office expenses
  • Office stationary and supplies
  • Rent for property used in your business
  • Repairs and maintenance
  • Salaries, wages and benefits incurred by you as an employer
  • Travel expenses

Tax Tips for Tax Preparation Self Employed Tax Payer

ff you’re self-employed, you already know how complicated and stressful tax preparation and tax filing can be – keeping track of receipts, staying up-to-date on the Canada Revenue Agency’s tax policies, and navigating tax season.

1. Cash flow

Monitor your cash flow as often as you can. This will allow you monitor what and which source of funds your revenue is coming from.

Analysis will show most funds come from a small number of great clients.  You can optimize what you offer to increase revenue by looking at the characteristics of your top clients.

Consistently reviewing your cash flow will also help keep receivables up.  

2. Incorporating your business

There are many benefits to incorporation. Because an incorporated business is a separate entity, you are not personally responsible for debts, obligations or other acts of the corporation (talk to your tax professional about exceptions). Corporations are also taxed at a lower rate. For Canadian-controlled private corporations claiming the Small Business Deduction, the net tax rate is 9%.

If you’re earning more than you need to live, you can reinvest surplus profit into the business, allowing you to defer personal taxes on withdrawals.

In addition, the business has extended life, there are opportunities for income splitting, along with more opportunities to raise capital.

You can also use the lifetime capital gains exemption if you have capital gains arising from the disposition of certain properties (small business corporation shares and qualified farm and fishing properties) and meet certain conditions – the exemption could spare you from paying taxes on some or all of it.

3. Organize business expenses

Sit down for 30 minutes every month to review and categorize your receipts. This keeps things manageable as the year progresses and keeps you on top of your spending, so you don’t miss out on any tax deductions.

We advise our small business Members to purchase an accordion folder every year to house all business receipts. These inexpensive folders are easy to obtain and allow you to organize your receipts by category and year, so finding a specific receipt is a snap in the future.

4. Take advantage of tax deductions

There are many business expenses you can claim as a tax deduction, helping reduce the amount of taxes you must pay and keeping more money in your pocket.

Below is a partial list of some of the expenses your small business can deduct:

  • Home office expenses
  • Advertising and promotional material
  • Insurance
  • Mortgage interest
  • Repair and maintenance
  • Interest on loans
  • Property taxes
  • Capital Cost Allowance (CCA)
  • Meals and entertainment (up to 50%)
  • Salaries, wages, benefits, and medical expenses
  • Vehicle expenses and fuel costs
  • Accounting and legal fees
  • Gifts to employees for holidays or special occasions

The list of eligible tax deductions is extensive, but there are also a number of expenses you can’t deduct to lower your businesses tax obligation.

  • Local travel (getting to and from work)
  • Holidays and personal vacations
  • Clothing
  • Alcohol
  • Interest or penalties paid on your income tax
  • Too much in gifts (the limit is up to $500 per year)

5. Records & Receipts for at Least 6 Years

To keep compliance with CRA requirements you need to keep records and copies of all your invoices.

Even though you don’t need to send your receipts to the CRA when you file your taxes, if they ask for proof of a deduction and you can’t  provide it, they will reject the claim.

That’s why it’s important to have a separate bank account for your business and use a separate credit card.

In addition to keeping track of all your receipts, you need to keep that paperwork for at least six years. Why? That’s how far back the CRA can go if it decides to audit you.

6. Keep Emergency Funds

Being self-employed means getting used to inconsistent or unreliable cash flow.

Because income can vary from month-to-month, it’s a good idea to set aside enough money to carry you through the dry periods. This can help pay for expenses and taxes, which are not automatically deducted.

Set up an emergency fund so you can cover your personal expenses when you’re not bringing home income.

7. Always file a tax return

If you’re self-employed and haven’t made any income, you might think there’s no reason to file a tax return.

But if you want to claim the GST, HST credit or  Canada Child Benefit, the net income declared on your tax return determines the amount you receive.

Filing a return will also allow you to claim:

  • Provincial tax benefits
  • Tax refunds for installment or source deductions
  • Refundable medical expense supplement
  • Canada Pension Plan or Employment Insurance (EI) premium overpayments

Also, your tax return creates the contribution room in your RRSP. Make sure you file so you receive the credits and benefits you’re entitled to.

For Self Employed and Small Business Tax Advice and Planning please visit our related firm Toronto Tax Consulting.