With many personal accountants now offering web-based services, it’s never been easier to find one you trust and who has the expertise to serve your unique needs best. Have you ever wondered if you were paying too much tax? Or perhaps you want to find out what’s in the tax form you received from your accountant. Many people don't realize how much taxes add to their personal finances. But it is important to know what you are getting into. Tax time is a busy time for everyone, including accountants. Whether you feel like preparing your own taxes or hiring an accounting firm to do it for you, here are some questions you should ask before meeting with your personal tax accountant.

1. When is my Tax Return Due?

You’re right to be concerned. The Canada Revenue Agency (CRA) makes it a point to crack down on those who make unsubstantiated income claims. If you claim a business deduction that isn’t allowed, your CRA will consider this a taxable income. The tax-filing season is in February of 2022, which means we are on the cusp of the 2022 tax season. Almost all Canadians will be filing their tax returns by April 30 of 2022 (for the tax year of 2021). In the usual course of business, the general deadline for tax filings is on April 30 of each year, but in 2022, this date falls on a Saturday, so there is an extension until the subsequent business day, which is May 2, 2022.For the CRA to consider you to have filed your return on time, you must:

  • The application is received on or before May 2, 2022
  • There is a postmark on or before May 2, 2022, on your paper return

In the case of people who work independently or whose spouse or partner works independently, the deadline extends until June 15, 2022. You do not only get a tax refund on time if you file your taxes on time. Your government benefits can also be adversely affected if you file your tax return late.

2. How Much Income Will I Have to Declare?

The Canada Revenue Agency (CRA) may consider your hobby a business. Business income is considered to be anything that makes you a profit. If you’re not running an actual business, the CRA still considers it a business. This includes any profession, vocation, business, trade, adventure, or undertaking. There is no minimum income threshold for hobby income, so it doesn’t matter how small it is. Your hobby income must be included when you file your Canadian income tax. Digital currencies are increasingly popular with people around the globe who are looking for ways to store and transfer money online. The growing popularity of these currencies has led to the need for the CRA to issue guidelines on how they are to be treated. Since cryptocurrency is not a currency issued by the Canadian government, it is not regulated as such. It is considered a commodity by the CRA and therefore subject to its regulations.

3. What are Some of The Deductions?

You already know some of the deductions and credits that you can claim this year. Don’t worry – even if you don’t remember it, you still have plenty of other things you should be doing that will help you out! It's easy to overlook certain claims if you’ve never seen them used. That’s where a personal tax accountant can help you out.

4. How Much Will I Pay in Taxes?

The government of Canada sets the tax on the services offered. You’ll need to consult with your own accountant or tax advisor to see what tax you might be liable for. Canadian income tax rates are progressive. The highest tax rate is 43%, which applies to taxable incomes over $149,063.

5. What can I expect from my tax accountant?

The best tax accountant will be one that provides value and can understand your business and financial situation. A good accountant will ensure that you are taking advantage of all the available deductions and tax credits. They will also know how to make you money. Please make sure you talk to someone who has used their services. Make sure they’ve worked with someone else before. Find out what their refund policy is before you hire them. Some people will not charge you until they have your money. Others will charge you regardless of whether you use their services.

Conclusion

Ensuring that you file your taxes on time and without any mistakes is crucial. Otherwise, you could face penalties worth thousands of dollars. Make sure that you work with an accounting firm that you can trust. This will only happen when they know what they’re talking about. The accounting firm should have at least one CPA. Talk to them and ask them questions to find out if they are a good fit for you or not.