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Poll

Have you begun your taxes yet?

Im very organized -its all ready
yes I have recently got started
No and I am dreading it!
No, but I am planning on getting going
No, I get this done last minute.

Author Topic: Tax Time! 2007 taxes  (Read 3544 times)

Offline spud

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Tax Time! 2007 taxes
« on: January 27, 2008, 02:58:39 PM »
I dread doing taxes every year as it takes such effort adding up all those annoying but very necessary receipts.  Every write off counts and is needed to reduce the amount owed each year off my daycare income.  While parents get a tax credit, I, Like all tax paying citizens must pay the tax man at the end of the year.  I throw my receipts into a box and use envelopes that are labelled the necessary name and several times a year I organize the heaping piles into the envelopes so that at this time of the year when I pull out the box over the next several weeks to plow my way through the task..that its at least a bit organized.  My enrolment was low last week so I took the opportunity to get started and again today I grabbed an envelope and added up the figures.  BOY, I cant get over what my expenditures are !  I hardly wonder if I REALLY made anything this year after buying some big items needed for the daycare. Ie a despiratly needed airconditioner...to provide us with a bit of relief..and a shed to keep all their toys and equipment in...
My accountant always says even if I lost money its better to pay the tax man so he doesnt knock down my door with an audit..I would hate that hassle...even though it would all come out clean...so I hand over my hard earned cash just like the rest of the tax paying community.
Anyone else get started recently?

Offline spud

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Re: Tax Time! 2007 taxes
« Reply #1 on: January 27, 2008, 03:17:30 PM »
http://www.taxtips.ca/ontax.htm

Ontario 2007 Budget
 no changes to personal income tax brackets or rates
 new Ontario Child Benefit (OCB) will assist all low-income families with children under 18.  Under a 5 year phase-in, the government proposes to deliver a down payment of up to $250 per child in July 2007.  This would be in addition to social assistance and OCCS payments.  Monthly payments would begin in July 2008, with a maximum benefit of $600 per year per child.  This annual maximum will increase in 2009, 2010, and 2011, to $805, $900, and $1,100

Offline spud

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Re: Tax Time! 2007 taxes
« Reply #2 on: January 27, 2008, 03:19:27 PM »
http://www.cra-arc.gc.ca/menu-e.html

Heres a link to all your tax questions!

Line 365 - Children's fitness amount
You can claim to a maximum of $500 per child, the fees paid in 2007 that relate to the cost of registering your or your spouse or common-law partner's child in a prescribed program (see next page) of physical activity. The child must have been under 16 years of age at the beginning of the year.

You can claim this amount provided that another person has not already claimed the same fees and that the total claimed is not more than the maximum amount that would be allowed if only one of you were claiming the amount.

Children with disabilities - Under proposed legislation, if the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed provided that a minimum of $100 is paid on registration or membership fees for a prescribed program of physical activity.

Note
You may have paid an amount that would qualify to be claimed as child care expenses (line 214) and the children's fitness amount. If this is the case, you must first claim this amount as child care expenses. Any unused part can be claimed for the children's fitness amount as long as the requirements are met.

Prescribed program
To qualify for this amount, a program must:

be ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days);
be supervised;
be suitable for children; and
require significant physical activity (generally, most of the activities must include a significant amount of physical activity that contributes to cardiorespiratory endurance plus muscular strength, muscular endurance, flexibility and/or balance).
Reimbursement of an eligible expense - You can only claim the part of the amount for which you have not been or will not be reimbursed. However, you can claim all of the amount if the reimbursement is included in your income, such as a benefit shown on a T4 slip, and you did not deduct the reimbursement anywhere else on your return.

Receipts - If you are filing a paper return, do not include receipts issued by the organizations that deliver the programs, but keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

« Last Edit: January 27, 2008, 03:25:53 PM by spud »

jen ece

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Re: Tax Time! 2007 taxes
« Reply #3 on: January 28, 2008, 06:15:07 PM »
I keep my tax info. going year round.  My books are done up so that as I complete each month then the yearly total is figured out at the bottom.  Right now I am waiting on the mortgage info. for the year, to come in.  Oh, and I do it all on paper, not computer.  I am so computer-illiterate but would love to have it on here!  My preschool-direct expenses (books, toys, art supplies, etc.) are a good $10,000 a year and then the in-direct expenses (household expenses) are another $5,000.  So to run a program that brings in $2,100 in fees plus government grant of around $1,100/year it takes $1,000 directly each month and then I have the 'bonus' of the additional expenses.  I typically pay between $700 and $1,100 a year but it is mainly CPP.  Being self-employed you have to pay double - the employer portion and the employee portion.

Offline CareDC

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Re: Tax Time! 2007 taxes
« Reply #4 on: January 28, 2008, 06:31:31 PM »
You must be very organised to do a month-end every month. It really pays off at the end of the year though. You might want to look into incorporating the business if you haven't done so. It puts less risk on your personal finances and there are tax breaks. The initial investment is a bit steap, but in the long run it's worth it.

Offline spud

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Re: Tax Time! 2007 taxes
« Reply #5 on: January 29, 2008, 01:30:04 PM »
Interesting Jen, I always wondered why my CPP was so high. Thanks.
I hope you join the group  ;D
i do not use any computer program either, wish i did sometimes, but im not organzied enough to do that anyways lol...I just add up each section of receipts and have used microsoft word i think ( under my documents you can select file, new, new word document and that will bring up a blank page) (sorry not sure HOW illiterate you are lol) then i just list all my expenses and details and fill in the blanks after i add up the reciepts and then print it for the accountant. do you do it yourself or have an accountant?

jen ece

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Re: Tax Time! 2007 taxes
« Reply #6 on: January 30, 2008, 07:36:11 PM »
Oh, I am very computer-illiterate!  I have someone at H & R Block who worked mainly with preschools and childcares years ago so she does my taxes as she knows the in's and out's of this business in particular.

I will have to look into incorporating but I don't know if it will be worhtwhile for my small business but I will check into it!  Thanks!

Offline CareDC

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Re: Tax Time! 2007 taxes
« Reply #7 on: January 31, 2008, 02:29:24 AM »
There is alot of inexpensive software out there that could keep you organised financially. "Simply accounting" is one of them - there are others. Word is not designed for this staff. "Microsoft Money" is quite useful as it allows you to keep a ledger, print reports and lots of other staff. These software packages have become quite sufisticated over the years.

Offline Laura

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Re: Tax Time! 2007 taxes
« Reply #8 on: January 31, 2008, 03:51:20 PM »
Is it that time of the year again (GRRRR  ::) )

 

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