Thursday, June 11, 2009

ITIN - Individual Taxpayer Identification Number

ITIN is for US federal tax reporting only. It is for people who need to file US tax but don't have and are not eligible to apply for SSN. Examples of individuals who need ITINs include:
  • Non-resident alien filing a U.S. tax return and not eligible for a SSN
  • U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for a SSN
  • Dependent or spouse of a U.S. citizen/resident alien
  • Dependent or spouse of a non-resident alien visa holder
You can get the application Form from IRS. If you need help, please email us at tax@yyconsulting.com for appointment.

Saturday, June 6, 2009

Tax Freedom Day - Canada & USA

Fraiser Institute just released June 9 is Canadian's Tax Freedom Day this year!  We are three days ealier than year 2008.   The main reason is that the economic slowdown has reduced tax collections even faster than it has reduced income.  

So what is Tax Freedom Day?   This is the first day that we have paid off all our taxes on federal, provincial and local levels, and we start to really earn money for ourselves.  Fraiser Institute also has a handy online calculator to calculate your own TFD.

In 2009, Canadian family earned $88,432 in average and paid $37,699 in tax.  

For US, Tax Freedom Day for 2009 is April 13,  for a total average effective tax rate of 28.2 percent of the nation's income.  This is eight days earlier than last year due to two major reasons: recession and stimulus.   

Friday, May 15, 2009

You've Earned it, Claim it! Get Your Tax Refund Today!

For average Canadians, we are getting a tax refund averaging more than $1400.  For the fellow Americans, we are getting an average of more than $2700 back this year.  

It is your money, claim it!  

If you need help on your late tax preparation, please email us at tax@yyconsulting.com or call 604-762-5396 for appointment.

 

Wednesday, April 22, 2009

Earth Day Today! Save Our Planet, Save on Tax!

Earth day tips from YYC accountant:

1. Scan your tax slips and relevant documents
2. Email them to us at tax@yyconsulting.com
3. We will send your tax return in PDF format or efile.

No paper, no transportation, and best of all, we are offering a 10% discount off our standard rate for your tax return services.

please email us at tax@yyconsulting.com or call 604-762-5396 for appointment.

Tuesday, March 24, 2009

Personal Income Tax Deadline: Canada & USA

Spring is right at the corner, just a friendly reminder of the coming deadlines to file your tax:

April 30, 2009 (Canada)

CRA 2008 personal income tax filing deadline.

April 15, 2009 (USA) *
IRS 2008 income tax return is due, unless you file for an extension until Oct. 15. 

If you reside overseas, or are in the military on duty outside the U.S., you are allowed an automatic 2-month extension to file your return until June 15. However, any tax due must be paid by the original return due date (April 15) to avoid interest charges.

If you need help on your tax preparation, please email us at tax@yyconsulting.com or call 604-762-5396 for appointment.

Friday, May 30, 2008

$1400 average refund for 2007 tax season

Canadians are getting $200 more refund from last year.

With the filing season now complete for most Canadians, the CRA would like to remind self-employed individuals, and their spouses or common-law partners, that they have until midnight on Monday, June 16, 2008, to file their income tax returns. If they had an outstanding balance for 2007, it had to be paid on or before April 30, 2008, to avoid interest. A late-filing penalty on amounts owing will apply to returns received or postmarked after June 16, 2008.

2008 Tax Filing Season Statistics as of May 28, 2008


2008 2007 Change

Total received

23,687,417

23,099,964

+2.5%

NETFILE

4,150,737

3,957,938

+4.9%

TELEFILE

478,023

505,966

-5.5%

EFILE

9,014,295

8,259,416

+9.1%

Paper

10,044,362

10,376,644

-3.2%

Wednesday, April 30, 2008

CRA: EFile system outage



DOS attack by the tax payers :-)

From CRA:

We are currently experiencing intermittent technical difficulties that are affecting electronic filers.
However, many transactions are successful. We recommend that you continue trying to access our systems on a periodic basis.
We apologize for the inconvenience and assure you we are doing what we can to remedy the situation as soon as possible. Electronic filing continues to be the fastest method of processing tax returns. Further updates to follow.
Please note: All returns accepted by midnight (local time) on Tuesday, May 6, 2008 will be considered on time, and no filing penalty will be assessed.
For clients with self-employment income and their spouses or common-law partners, you have until midnight Monday, June 16, 2008 (filing due date) to file their tax return.
Please remember, to avoid interest charges the balance owing must be paid or post marked April 30, 2008. A nice a little break for the efilers :-)




Monday, April 21, 2008

Nonresident Aliens May Claim the Child Tax Credit for a Nondependent Child

For tax years beginning after Dec. 31, 2004, nonresident aliens may claim the child tax credit on Form 1040NR, U.S. Nonresident Alien Income Tax Return, for a nondependent child. Attach Form 8901, Information on Qualifying Children Who Are Not Dependents (For Child Tax Credit) to the return. File amended returns for those who were eligible but didn’t claim the credit for 2005 or 2006, and attach Form 8901.

Thursday, April 10, 2008

British Columbia Training Tax Credit

CRA Tax Tips:

Did you know...

That the Government of British Columbia has introduced the British Columbia Training Tax Credit to attract people to apprenticeship programs, and to encourage those already enrolled to complete their program. This tax credit is available to both apprentices who were residents of British Columbia at the end of the year and employers of apprentices enrolled in a Red Seal or other program recognized by the Industry Training Authority who carried on a business in British Columbia during the year.

Apprentices

As an apprentice, you may qualify for up to $9,000 in tax credits as you progress through your training, and additional funding is available to qualified apprentices under the Enhanced Tax Credit. To claim the training tax credit, complete Form T1014 and include it when filing your personal income tax return.

Employers

By employing an apprentice, you may qualify for up to $12,500 in tax credits as the apprentice progresses through training. Additional tax credits are available to employers through the Enhanced Tax Credit if the apprentice is eligible for the federal disability tax credit or is registered as an Indian under the Indian Act.


Proprietors can claim the credit by completing Form T1014-1 and including it when filing their personal income tax return. Corporations claiming the credit must complete Schedule T2SCH428 and include it with their corporate income tax return.


If you need help on your tax return or have questions on BC training tax credit, please contact a tax professional. As always, staff from YY Consulting Tax Services would love to hear from you.

Monday, March 31, 2008

From IRS: Basic Information on the Stimulus Payments

Updated March 17, 2008 — new 1040A-3 package

You've heard about it. Now find out how to get yours.


What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.


Are you eligible? The vast majority of people who file a 2007 income tax return qualify, and many who don't regularly file a tax return may qualify as well. You're eligible if you have a valid Social Security Number (SSN), can't be claimed as a dependent on a tax return and have either an income tax liability or "qualifying income" of at least $3,000. Qualifying income includes any combination of earned income and certain benefits from Social Security, Veterans Affairs or Railroad Retirement. Additional information is below, and a full legal description is available in Revenue Procedure 2008-21.


Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment — if only one has a valid SSN, neither can receive the payment.


Can you use an ITIN instead of an SSN?
Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment — if only one has a valid SSN, neither can receive the payment.


Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. File the form after April 14, 2008, and allow 8-12 weeks of processing time before making any inquiries about your payment. See a sample with instructions.


If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return.


How do you get it? Just file a a federal tax return for 2007, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.


How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.


The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.


Can you estimate your payment? The IRS has created an online calculator that will allow you to answer a few questions and get a quick estimate of your payment amount.


How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.


When will you get your payment? Starting May 2, payments will be electronically transmitted to direct deposit accounts. Paper checks will be mailed starting May 16. The payments are based on the last two-digits of the mail filer's Social Security number. The IRS has issued a schedule for payments as direct deposits or paper checks.


What if some or all of your income consists of Social Security, veterans' or other benefits? The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2007 tax return using either Form 1040 or the short Form 1040A. For more information, see:


Tax Package 1040A-3 and Form 1040A


Those who normally don't have to file a tax return and can use the short form for the stimulus payment can check out tax package 1040A-3 to see information on, and an example of how to fill out, Form 1040A.


Learn More about the Economic Stimulus Payments

For more information, check out our:


Warning — Scam Artists Are Calling Taxpayers about the Stimulus Payments


If someone claiming to be from the IRS calls or e-mails you about the payments and asks you for a Social Security, bank account or credit card number, it's a scam. The scammers are trying to get your personal and financial information so they can empty your bank account, run up charges on your credit card and more. Find out more — see IR-2008-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting.