Blog  |  Tax

Personal Tax Season: Medical Expenses

Posted on , Updated: by Graham Scott Enns  |  Posted in Graham Scott Enns, Tax

If you have paid medical expenses for yourself or your dependents, you may be able to claim them on your personal tax return. However, not all medical expenses are eligible, and there are some rules to follow. Here are some tips on how to organize your medical expenses for claiming on your tax return.

  1. You need to determine the total amount of eligible medical expenses that you paid in the tax year. Eligible medical expenses include payments to medical practitioners, dentists, nurses, pharmacists, and other health care providers, as well as prescription drugs, dental care, vision care, hearing aids, and more. You can find a complete list of eligible medical expenses on the Canada Revenue Agency (CRA) website. (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html#mdcl_xpns)
  2. As part of preparing your personal tax return, the amount that you can claim as a tax credit will be calculated. The medical expense tax credit is a non-refundable tax credit that reduces your federal and provincial taxes payable. The amount of the credit is based on a percentage of your eligible medical expenses that exceed a certain threshold. For 2023, the threshold is the lesser of 3% of your net income or $2,635. You can claim the credit for yourself, your spouse or common-law partner, and your dependent children under 18 years of age. You can also claim the credit for certain other dependents, such as your parents, grandparents, siblings, aunts, uncles, nieces, or nephews, if they depended on you for support and their net income was below a certain amount.
  3. Plan to keep all the receipts and documents that support your claim. You do not need to send them with your tax return, but you must keep them in case the CRA asks to see them later. You should also keep a record of the names and relationships of the persons for whom you paid medical expenses, and their net income if they are not your spouse or child.

Claiming medical expenses on your tax return can help you reduce your taxes payable. However, it can also be complicated and time-consuming. Please reach out to your accountant if you have further questions.

IMPORTANT ANNOUNCEMENT: 2023 Bare Trust Filings

Posted on , Updated: by Graham Scott Enns  |  Posted in Community, Graham Scott Enns, News, Tax

Important Announcement Regarding Bare Trusts

CRA has just announced that bare trusts are exempt from trust reporting requirements for 2023. CRA stated:

“To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.

In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless the CRA makes a direct request for these filings.

Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.”

Please visit the CRA website to learn more: New – Bare trusts are exempt from trust reporting requirements for 2023 – Canada.ca

Giving us access to your My Business Account

Posted on , Updated: by Graham Scott Enns  |  Posted in Accounting, Community, Graham Scott Enns, News, Tax

In order to talk to the CRA on behalf of our clients, we need to get authorization from them to in order to become representatives. If you have a business, you will need to give us access to your My Business Account with the CRA.

In order to do this, we have complied a list of the steps that you will need to take in order for this process to be completed. You can check out this, and a bunch of other useful documents for our clients in our Document Library on our website. Visit www.grahamscottenns.com/document-library/ to view this and all other documents!

 

Steps:
1. Log in to My Business Account Canada Revenue Agency – CRA Sign in (cra-arc.gc.ca)
2. On left hand side, click on Profile
3. On right hand side, go to Authorized Representatives and click on Manage authorized representatives
4. Click on Authorize a representative button
5. Enter GSE’s business number 12276 3774
6. Level of authorization should be set to Level 2 Update and view
7. No expiry date
8. Click on All accounts
9. Click on Confirm and submit

It’s Here! New and Expanded T3 Trust Reporting!

Posted on , Updated: by Graham Scott Enns  |  Posted in Community, Graham Scott Enns, News, Tax

New rules originally released in 2018 aimed at providing more transparency on beneficial ownership of assets now require more trusts and estates to file tax returns.

The new rules are broad and include cases where a trust acts as an agent for its beneficiaries. This structure is commonly referred to as a “bare trust”. There is however, no expansion or increase of the tax involved but there is a requirement to file a Trust Tax return in many situations where there was no prior requirement to.

Highlights of this newsletter include commentary on:

  • Does a bare trust arrangement exist,
  • Does a trust return need to be filed, and
  • What information must be disclosed?

Check out the full newsletter below, and please reach out for further information.

Expanded T3 Reporting Rules

2023 Personal Income Tax Season Has Arrived!

Posted on , Updated: by Graham Scott Enns  |  Posted in Community, Graham Scott Enns, News, Tax

Personal Income Tax Season Has Arrived!

For new and existing personal income tax clients, here are some reminders and new information regarding GSE’s personal income tax preparation process.

  1. We continue to provide multiple methods to accommodate the receipt of your income tax documents in a secure and safe manner. 

    a) Secure online Portal – Please upload supporting documents via our Secure client portal. We prefer PDF files and recommend the use of an app such as Microsoft Lens (available in your favourite app store) to help you convert image files to a PDF. When in doubt, submit what you have and we’ll reach out if the format is not compatible.OR

    b) ST. THOMAS – You may drop off supporting documents to the secure drop box at the South rear entry of the County of Elgin building, door closest to the loading dock. This drop-box is emptied daily and allows us to have fewer clients in our reception area. Alternatively, you may drop off supporting documents at either the County of Elgin reception located in the centre portion of the 1st floor or to the GSE reception located on the 2nd floor. The drop-off hours are 8:30 – 4:30 pm, Monday to Friday.

    OR

    c) AYLMER – You may drop off supporting documents to the secure drop box located directly outside of our regular main reception lobby door. This drop-box is emptied daily and allows us to have fewer clients in our reception area. If your item is too big for the drop-box, please enter the office and leave with reception. The drop-off hours are 8:30 – 5:00 pm, Monday to Friday.

  2. We have a new Document Library on our website. Here you will find the following documents: 

    a) 2023 Personal Income Tax Return Checklist – please review this listing to determine if you are submitting all necessary documents to support your reported income, deductions and credits.b) T1 Returning Client Questions – Please complete these questions on an annual basis. Either print and drop them off with your personal taxes or upload your responses to the Portal. These questions help us to ensure we have accurate information about your current tax situation.

    c) T1 New Client Questions Form – We highly recommend this Form for new clients or returning clients with changing tax situations. Either print and drop it off with your personal taxes or upload your responses to the Portal.

    d) Final Return & Estate Checklist – If you are assisting with the final tax return for someone who has recently passed away, please complete and return this checklist. It outlines some of the additional information we will require.

    e) Authorization/Cancellation Request Form – For new clients to allow us to communicate with the Canada Revenue Agency on your behalf.

  3. How do I get my documents and personal tax return back? 

    a) Once your tax return has been prepared and reviewed, you will receive a call indicating that your personal income taxes have been completed.b) If you have not already told us, we will ask if you would like it back electronically (via our Secure online portal) or a paper copy. Prior to us filing your return, we require a signature – this can be done either via Portal (using an electronic signature – DocuSign), via Portal (with a scanned upload of the signed document), via fax, via mail, via drop-box at our office, or it can be signed in-person at the time of pick-up.

As always, if you have any questions, please reach out to us at (519) 633-0700/ (519) 773-9265 or contact the individual you usually work with.

Happy tax filing!

Please follow us on social media for the latest updates:

Facebook

Instagram

Linked In

Tax Tips & Traps 2nd Quarter 2023 Issue 142

Posted on by Graham Scott Enns  |  Posted in News, Tax

Highlights In This Issue:

  • Tax Tidbits
  • Budget 2023: Top 5 Items for Owner-Managers
  • Underused Housing Tax: Increased Disclosures
  • TFSA: Carrying on a Business Within It
  • Unreported Capital Trades Included on a T5008
  • Employment Expenses for Commissioned Employees
  • Small Business Succession
  • Employee Time Theft Challenges

Tax Tips and Traps 142, 2023 – 2nd Quarter

Tax Party 2023

Posted on , Updated: by Graham Scott Enns  |  Posted in Community, Graham Scott Enns, News, Tax

On Monday May 1st, 2023, Graham Scott Enns LLP held its annual tax party to celebrate the end of personal tax season. The tax party was held at The Club House located at 100 Kellogg Lane in London, Ontario. Our Partners and staff enjoyed a delicious taco bar meal which was followed up by playing a variety of games including mini golf, bocce ball, ladder toss and cornhole. GSE is very thankful to all of our staff for all of their hard work during personal tax season!

 

Tax Deadline 2023

Posted on by Graham Scott Enns  |  Posted in Community, Graham Scott Enns, News, Tax

Friendly reminder thatthe filing deadline for personal taxes (individuals who are not self-employed) is May 1, 2023 and June 15, 2023 for self-employed individuals. If you owe income taxes, payments are due on May 1, 2023. While the filing deadline for self-employed individuals is June 15, 2023, income tax payments should be paid by May 1st, 2023 to avoid incurring interest on income tax balances that are owing.