If you are not aware of the compliance procedures and the relevant documents required, filing income tax returns can become a tedious task. There are many tax preparation companies in Toronto, that offer professional taxation services in the market. You can opt for the best assistance from the accounting firm ‘Billah & Associates‘ which specializes in tax planning & return preparation professionally.
A poorly prepared checklist can lead to missing crucial information about your income or deductions when filing your taxes. Follow these essential information guides for the tax filing procedure simpler and more accurate.
Making Your Tax Filing Procedure Simpler!
General Information:
- Full name and date of birth of self, spouse, children or dependents, if any.
- Social security number of self, spouse, and dependents.
- Bank account number.
- Bank’s routing number where refunds are required to be transferred directly to the bank account.
- Previous year’s tax returns of self and spouse.
- Payments made towards federal, state, and local taxes during the year.
Documents Related to Income:
- W-2 Forms of self and spouse.
- Form 1099 for interest, dividend, income, annuities, and tax refunds.
- Form 1099 S – Income from the sale of real estate.
- Profit/loss statement of income and expenses on rental property.
- Form 1099 B – Capital gains from sales of stock, land etc.
- Profit/loss statement of business or farming income.
- Cost basis of securities sold.
- Miscellaneous income in the form of winning at gambling, scholarships, medical savings accounts, etc.
- Social security received.
- Income – Independent contractor forms.
Other Incomes:
- Alimony received.
- Unemployment compensation received.
- State tax refunds.
Adjustments to Income:
It is required that a taxpayer keep records of the receipts, bills, and other documents listed below as they are mandatory for tax preparation in Toronto:
- Alimony paid.
- Self-employment – health insurance paid.
- Receipts for qualified energy-efficient home improvements, such as the installation of solar windows.
- Student Loan Interest Paid – Form 1098 E.
- Tuition Fees Paid – Form 1098 T.
- Contribution to the medical savings account.
- Moving expenses record.
Deductible Expenses and Tax Credits:
The tax deduction law levied on some of the expenses reduces the overall income and the tax on it. There are some tax credits designed to lower the amount of tax. They are:
- Payment of real estate taxes.
- Expenses such as medical expenses, healthcare insurance, and payments to dentists, doctors, and ENT.
- Charitable contributions made during the year.
- Mortgage Interest Expense – Form 1098.
- Job expenses which haven’t been reimbursed.
- Payment towards job-related costs such as uniforms, supplies, travel etc.
- Adoption costs.
- Theft losses and casualties including the details of the amount of damage, and insurance reimbursements.
- Job and moving expenses.
- Union dues.
- Costs of childcare.
- Advance child tax credit payment.
- Education-related costs.
- Medical expenses.
- Personal property taxes.
- License fees of the work vehicle.
- Contribution to IRA.
Additional Information:
- Refunds from the previous year applied to the current year or any amount paid with an extension to file.
- Details of Foreign Bank Account such as the name of the bank, account number, location, and highest value of the account during the year for which tax return is being filed.
There is indeed a lot that goes into filing tax returns and you need to make all necessary preparations before it. At Billah and Associates Inc. we have expert tax accountants who can provide you with personal tax services. Interested in getting assistance with your tax filing procedure? Request an appointment here or call 647-241-5126 to talk to one of our tax specialists.
Also read: