Question 1 - Answer B - Guide page 10 - bottom left hand section - "If you owe tax for 2017 and do not file your return for 2017 within the dates we specify under “What date is your return for 2017 due?” in the previous section, we will charge you a late-filing penalty. The penalty is 5% of your 2017 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months." Better hope you don't owe them lots of taxes as 17% can add up however and there is compounded interest on the taxes and late filing penalties as well! Section - Filing deadlines, penalties and interest
Question 2 - Answer C - Guide page 13 - bottom right hand section - "We will consider a request for a refund for a previous tax
year return that you are filing late, only if the return is for a tax year ending in any of the 10 calendar years before the year in which you make the request. For example, a request made in 2018 must relate to 2008 or a later tax year to be considered." I actually had to do this for a client one year. He hadn't filed his returns for 10 years and most of the years were refunds! Answer A - is for the US - they are much nastier about late refunds. Answer B - 6 years is how long you need to keep your paperwork although if you haven't filed your tax returns yet you better keep the paper work until at least 3 years after the late filed return is assessed! Answer D - Even the CRA isn't that nice unfortunately. Section - How to file your return
Question 3 - Answer D - Guide page 23 - top left hand section - "In 2017 you may have received a payment from an eligible
employer, such as a government, a municipality, or another public authority for your work as a volunteer ambulance technician, a firefighter, a search and rescue volunteer, or other type of emergency worker. The T4 slips issued by this authority will generally show only the taxable part of the payment, which is the part that is more than $1,000. If you provided volunteer emergency services for more than one employer, you can claim the $1,000 exemption for each of your eligible employers. The exempt part of a payment
is shown in box 87 of your T4 slips. As an emergency services volunteer, you may qualify for the volunteer firefighters’ amount (VFA) or the search and rescue volunteers’ amount (SRVA). See lines 362 and 395. If you are eligible for the $1,000 exemption and either the
VFA or the SRVA, you must choose which one you would like to claim. If you choose to claim the exemption, report only the amounts shown in box 14 of your T4 slips on line 101. If the authority employed you (other than as a volunteer) for the same or similar duties
or if you choose to claim the VFA or the SRVA, the full payment is taxable. You must add the amounts shown in boxes 87 and 14 of your T4 slips and report the result on line 101." Section - Step 2 – Total income
Question 4 - Answer A - Guide page 34 - top right hand section - "If you have made deductible RRSP, PRPP, and SPP contributions for 2017 (other than transfers) from March 2, 2017, to March 1, 2018, you do not have to claim the full amount on line 208 of your 2017 return. Depending on your federal and provincial or territorial rates of tax for 2017, and your expected rates of tax for future years, it may be more beneficial for you to claim, if applicable, only part of your contributions. The contributions you do not claim for 2017 will then be available for you to carry forward and claim for future years when your federal and provincial or territorial rates of tax are higher." Guide page 35 - bottom right hand section - "If you have unused RRSP, PRPP, or SPP contributions made from January 1, 1991, to March 1, 2017, you should have filed a completed Schedule 7 with the tax returns for those previous years. If you did not, see “How to change a return” on page 68." Section - Step 3 – Net income
Question 5 - Answer C - Guide page 53 - top left hand section - "You may be able to claim all or part of the following
amounts for which your spouse or common-law partner qualifies if he or she did not need the whole amount to reduce his or her federal tax to zero:
■ the age amount (line 301) if your spouse or common-law partner was 65 years of age or older;
■ the pension income amount (line 314);
■ the disability amount (for self) (line 316);
■ the tuition amount for 2017 (line 323) your spouse or common-law partner designates to you. The maximum amount your spouse or comm on-law partner can transfer is $5,000 minus the amounts he or she uses even if there is still an unused part; and
■ the Canada caregiver amount for infirm children under 18 years of age (line 367).
Notes: Your spouse or common-law partner cannot transfer to you any tuition, education, or textbook amounts carried forward from a previous year. If you were separated because of a breakdown in your relationship for a period of 90 days or more including December 31, 2017, your spouse or common-law partner cannot transfer any unused amounts to you. Section - Step 5 – Federal tax and provincial or territorial tax
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Question 2 - Answer C - Guide page 13 - bottom right hand section - "We will consider a request for a refund for a previous tax
year return that you are filing late, only if the return is for a tax year ending in any of the 10 calendar years before the year in which you make the request. For example, a request made in 2018 must relate to 2008 or a later tax year to be considered." I actually had to do this for a client one year. He hadn't filed his returns for 10 years and most of the years were refunds! Answer A - is for the US - they are much nastier about late refunds. Answer B - 6 years is how long you need to keep your paperwork although if you haven't filed your tax returns yet you better keep the paper work until at least 3 years after the late filed return is assessed! Answer D - Even the CRA isn't that nice unfortunately. Section - How to file your return
Question 3 - Answer D - Guide page 23 - top left hand section - "In 2017 you may have received a payment from an eligible
employer, such as a government, a municipality, or another public authority for your work as a volunteer ambulance technician, a firefighter, a search and rescue volunteer, or other type of emergency worker. The T4 slips issued by this authority will generally show only the taxable part of the payment, which is the part that is more than $1,000. If you provided volunteer emergency services for more than one employer, you can claim the $1,000 exemption for each of your eligible employers. The exempt part of a payment
is shown in box 87 of your T4 slips. As an emergency services volunteer, you may qualify for the volunteer firefighters’ amount (VFA) or the search and rescue volunteers’ amount (SRVA). See lines 362 and 395. If you are eligible for the $1,000 exemption and either the
VFA or the SRVA, you must choose which one you would like to claim. If you choose to claim the exemption, report only the amounts shown in box 14 of your T4 slips on line 101. If the authority employed you (other than as a volunteer) for the same or similar duties
or if you choose to claim the VFA or the SRVA, the full payment is taxable. You must add the amounts shown in boxes 87 and 14 of your T4 slips and report the result on line 101." Section - Step 2 – Total income
Question 4 - Answer A - Guide page 34 - top right hand section - "If you have made deductible RRSP, PRPP, and SPP contributions for 2017 (other than transfers) from March 2, 2017, to March 1, 2018, you do not have to claim the full amount on line 208 of your 2017 return. Depending on your federal and provincial or territorial rates of tax for 2017, and your expected rates of tax for future years, it may be more beneficial for you to claim, if applicable, only part of your contributions. The contributions you do not claim for 2017 will then be available for you to carry forward and claim for future years when your federal and provincial or territorial rates of tax are higher." Guide page 35 - bottom right hand section - "If you have unused RRSP, PRPP, or SPP contributions made from January 1, 1991, to March 1, 2017, you should have filed a completed Schedule 7 with the tax returns for those previous years. If you did not, see “How to change a return” on page 68." Section - Step 3 – Net income
Question 5 - Answer C - Guide page 53 - top left hand section - "You may be able to claim all or part of the following
amounts for which your spouse or common-law partner qualifies if he or she did not need the whole amount to reduce his or her federal tax to zero:
■ the age amount (line 301) if your spouse or common-law partner was 65 years of age or older;
■ the pension income amount (line 314);
■ the disability amount (for self) (line 316);
■ the tuition amount for 2017 (line 323) your spouse or common-law partner designates to you. The maximum amount your spouse or comm on-law partner can transfer is $5,000 minus the amounts he or she uses even if there is still an unused part; and
■ the Canada caregiver amount for infirm children under 18 years of age (line 367).
Notes: Your spouse or common-law partner cannot transfer to you any tuition, education, or textbook amounts carried forward from a previous year. If you were separated because of a breakdown in your relationship for a period of 90 days or more including December 31, 2017, your spouse or common-law partner cannot transfer any unused amounts to you. Section - Step 5 – Federal tax and provincial or territorial tax
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