Tax tips for self-employed contractors from the Canada Revenue Agency
The tax filing deadline this year for self-employed contractors is June 16th. Don't forget to save a few bucks with your "tradesperson's tools deduction" and, for employers, the "apprenticeship job creation tax credit."
Here’s a press release we just got from the tax folks in Ottawa.
We are always delighted to hear from them. Unless it’s on the phone in the evening. That’s never a good omen.
Let the Canada Revenue Agency help you practice your trade with all the right tools
As a skilled tradesperson, improving your craft is no easy feat. Every day, you try hard to be the best and prove your ability. You’re hands-on, dependable, and take pride in your workmanship. You’ve built up your reputation with clients and associates. You have the qualifications and you have the skills, but do you have the tools when it comes to filing your tax return?
If you bought new tools for work this year, you may be able to claim a tradesperson’s tools deduction of up to $500 on your tax return. You may also be allowed a GST/HST rebate. To find out more about deductions and tax credits for employed tradespersons, click here.
Don’t forget that the deadline to file your income tax and benefit return is generally April 30. However, if you, or your spouse or common-law partner, are self-employed, the deadline is June 15. As June 15 falls on a weekend, the filing deadline has been extended to Monday, June 16, 2014. If you have a balance owing for 2013, you still have to pay it on or before April 30, 2014.
Filing electronically with NETFILE is easy, secure and allows the Canada Revenue Agency (CRA) to process your return much faster. If you use NETFILE and are expecting a refund, your money will be directly deposited in your account in as little as eight business days (weeks faster than if you file on paper). For a list of software and web service choices, including some that are free for everyone, click here.
While you are visiting the CRA’s website, be sure to sign up for My Account, which allows you to follow the progress of your refund, change your address, check your benefit and credit payments and your registered retirement savings plan limit, set up direct deposit, and so much more!
Employers can benefit too! If your business hires a qualified apprentice working in an approved Red Seal trade, you may qualify to claim the apprenticeship job creation tax credit. This non-refundable investment tax credit is equal to the lesser of $2,000 or 10 per cent of the eligible apprentice salaries or wages. Don’t need to use the whole credit amount this year? Carry the unused amount back three years or carry it forward up to 20 years! For more information on the apprenticeship job creation tax credit and other investment tax credits, click here and select Investment tax credit.
You can also stay on top of the latest CRA news or tax tips by following @CanRevAgency on Twitter.