In this article, we explain in more detail, the importance of properly preparing documentation for personal taxes.
Some General Instructions
Whether you operate a business, whether you are self-employed or a simple taxpayer the first commandment is simple:
Wait until you have gathered all your documents before submitting them to the experts. Their team has to manage hundreds of files in a very short time. This process must be rigorous and fluid. Some people would like to bring their documents as soon as possible, even if it means coming back with “the rest” as they receive tax slips and information for their return. That is a bad idea. This way of doing things unnecessarily increases the risk that important information will not be processed at the right time. Be patient and wait to have everything in hand before bringing us your file. Using the alternatives to turbotax offers perfect results.
Do Not Separate
Tax slips (T4, T5, etc.) because data entry is done by slip and not by administration.
Include all written communications you received during the year:
- Notice of Assessment
- Ministry correspondence
Provide with any other relevant information:
- Installment payments paid
- Address change
- Disposal of a residence, chalet or building (read the article on the obligations relating to the disposal of a residence)
- Holding of foreign property over $ 100,000
- Phone numbers and email to reach you quickly
- Changes in the family (birth, separation, union, etc.)
Information on dependent children (income, school fees, etc.) to determine if a return needs to be filed for them
All income must be declared. Include all slips received without separating them. Even if you did not receive a slip, if you have known income, you must notify us.
The slips you receive (T3 / R16, T5 / R3) do not contain all the information required to prepare income tax returns. The appendices supplied with the sheets must be provided to us. Please provide with your broker’s contact information at your financial institution in order to answer our questions.
Ask your investment advisor for the following reports:
- A summary of the dispositions (sales) of securities of all your non-registered
- Accounts (Accounts that are not RRSPs, RRIFs or TFSAs)
- All brokerage firms are able to generate and must provide you with this crucial information for your
- Tax return.
- This report should show all sales of securities, proceeds of disposition, cost, and capital gain or loss.
- The summary of your foreign assets held in your non-registered
- Accounts (Accounts that are not RRSPs, RRIFs or TFSAs).
- This information will be used to complete Form T1135, a mandatory declaration of foreign property.
- If you are dealing with a full-service broker. You will obtain these documents easily with the help of your representative.
- If you are dealing with a discount brokerage firm (Dismast, National Bank Direct Brokerage, etc.) it is
- Your responsibility to obtain the required reports for your taxes. These reports may be available
- If necessary, call the firm to obtain them. It’s up to you to collect them and provide them to us.
Include all slips received without separating them
Important Note On Medical Costs:
Ask the pharmacist for the annual statement for the prescriptions of the year
Ask your insurer for the annual summary statement detailing the sums claimed, the deductibles applied, the amount of reimbursements received and the costs paid by the insured. Tell us if you are on the public plan (RAMQ) or on a private plan. If during the year, you were on the public plan for a period and on a private plan for the rest of the year, you must tell us the months during which you were on one or the other of the plans.