Preparing for Taxes in Canada and Income Tax in Canada

As tax season approaches, so does the anxiety felt by most tax payers. The Canada Child Tax Benefit (CCTB) - A tax free, monthly payment designed to help families with the cost of raising children. Some of the highlights of the budgets that tax payers should be aware of prior to this year's tax season are:

• Pension Income Splitting
• Increase to the age limit for RRSP from 69 to 71
• New Child Tax Credit (discussed above)
• Registered Disability Savings Plan
• Investment Tax Credit for Child Care Spaces
• Lifetime Capital Gains Exemption increase from 500K to 750K
• Working Income Tax Benefit
• GST Cut to 5% effective January 1, 2008
• Lowest personal income tax rate will be reduced to 15% from 15.5%
• Basic Personal Amount increased to $9,600 for 2007 and 2008 and to $10,100 for 2009.

For Quebecers, the 2007 the provincial budget was released with a number of changes to the provincial-government tax and benefit programs administered by Revenue Quebec. A certified accountant is trained to know how to best reduce your tax burden, or increase your refund, all while reducing the stress of tax season.

If you're a small-business owner, there are some important items you'll need to be aware of when it comes to income tax in Canada. It's not always business as usual when it comes to tax time. For this reason, it'll be important to have a tax accountant on your side that understands everything there is to know about how to save you money when tax time arrives. After you've had a chance to read the information below, you'll have a better understanding as to why a tax accountant will be an important asset when it comes time to file taxes.

1.) Submitting Your Tax Returns on Time or before the Deadline

One of the most important items you'll need to understand about tax time in Canada will be to submit your tax returns on time or before the deadline. So you will want to make sure that you submit your tax returns on time.

2.) Using Tax-Free Savings Accounts

When saving money, use a TFSA or tax-free savings account. 3.) Utilizing Home Office Expenses

4.) Understanding the Tax-Free Automobile Allowances

Another area of concern will be the tax-free automobile allowance. If you have to use your automobile for anything related to your business, a tax can be deducted. 5.) Hiring a Professional Accountant

As a small business owner, the CRA doesn't look kindly on businesses preparing their own taxes. In addition to professionally filing your tax return, they will also be able to provide you with important tax advice that you should take advantage of.

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