Things to Know About Small Business Tax Filing

Are you doing some tax planning or commencing your own business? Whether you are new to US or a permanent resident, educating yourself about tax returns & filing is very important. Remember, it is essential both for your personal and professional lives. Thereby get in touch with the best best CPA in East Meadow NY General Trend- Most of the newcomers generally ask, is it tough to file your tax in US ? Every single year, Canadian residents need to devote some time aside to prepare their taxes. For someone who resides in Canada for numerous years, it is no longer an issue. If you are self-employed & have not made any income, you might think there is no significant reason to file a tax return. Remember, if you are eager to claim GST, HST, , the net income declared on tax return, determine the amount. Filing a return will help you to claim for • Provincial Tax Benefit • Tax refund For Installment • Sourced Deductions • Canada pension plan or employment insurance • Refundable medical expenses The Dates matter The Most- The tax return creates contribution room in the RRSP. Ensure you are filing so that you receive all the credit and benefits you are entitled to. The tax deadline for personal income tax is 30th April. In the year 2020, it was shuffled due to the COVID outbreak. If you are self-employed, you have time till 15th June. If you have an amount owning, you need to pay by 20th April. If you are owing money to CRA and filing your tax rate, you need to pay a penalty of about 5% of the balance you owe along with 1% for every month you are late to a minimum of 12 months. If you are late for numerous years, the penalty increases to 10% and 2% for every month your return is late till a minimum period of 20 months. Keeping All Records Are Very Essential- You need to keep all records of transactions to support income & expense claims. Support the reported income with original documents. It includes sales invoices along with bank deposit slips & fee statements. Contracts and receipts that are articulated by your accountant or you can get in touch with a best CPA in East Meadow NY are also taken into consideration. Keep the receipt of each of the transactions to support the expense. Remember, the CRA won't accept the bank or credit statement to justify the deducted business expenses. Make sure you have an itemized receipt that corresponds to the transactions. If you face any issue with tax filing, get in touch with your Corporate Taxation Assistance in Simcoe and get things done correctly.