Frequently Asked Tax Questions
The personal income tax deadline is April 30 each year. If you or your spouse are self-employed, you have until June 15 to file, but any taxes owed are still due by April 30 to avoid interest charges from the CRA.
You will typically need your T4 slips (employment income), T5 slips (investment income), RRSP contribution receipts, charitable donation receipts, medical expense receipts, tuition slips (T2202), and your Notice of Assessment from the previous year. Our team will provide you with a checklist when you book with us.
Personal tax preparation costs vary depending on the complexity of your return. Simple returns for employment income only are typically very affordable. Returns involving rental income, self-employment, or investments cost more. Contact S & M Tax Services for a specific quote — we are known for being affordable and transparent about pricing.
Yes, if you worked from home, you may be eligible to claim home office expenses such as a portion of your rent, utilities, and internet. Employees need a completed T2200 form from their employer. Self-employed individuals can claim these expenses directly on their business return.
The Disability Tax Credit is a non-refundable tax credit that reduces the amount of income tax you owe if you have a severe and prolonged physical or mental impairment. To apply, you need a medical practitioner to certify your condition using CRA Form T2201. S & M Tax Services can guide you through the application process.
Yes. All rental income must be reported to the CRA each year on your personal tax return using Form T776 (Statement of Real Estate Rentals). Failing to report rental income can result in penalties, interest, and reassessments going back several years.
You can deduct mortgage interest (not principal), property taxes, insurance, utilities you pay on behalf of tenants, maintenance and repairs, property management fees, advertising costs, and a portion of your accountant's fees related to the rental property. You cannot deduct the full cost of capital improvements — these must be depreciated over time.
As a sole proprietor or partnership in Ontario, you report your business income on your personal tax return (T1) using a T2125 form. If incorporated, you must file a T2 corporate tax return separately. You may also need to file GST/HST returns depending on your annual revenues.
You must register for GST/HST once your taxable sales exceed $30,000 in a single calendar quarter or over four consecutive quarters. Even if you are below this threshold, you can register voluntarily to claim input tax credits on business expenses. S & M Tax Services can help guide you register and file your GST/HST returns.
Yes, if you use your vehicle for business purposes, you can deduct a portion of your vehicle expenses — including fuel, insurance, repairs, and depreciation (CCA) — based on the percentage of kilometres driven for business. You must keep a mileage log throughout the year to support your claim.
The CRA selects returns for audit based on risk factors such as large deductions relative to income, unreported income identified from third-party data, discrepancies between your return and information slips, claiming home office or vehicle expenses as an employee, and random selection. An audit does not automatically mean you did something wrong.
Do not ignore it. Read the letter carefully to understand what documents the CRA is requesting and by what deadline. Gather the supporting documents for the items being reviewed, such as receipts, bank statements, or employment contracts. S & M Tax Services offers audit guidance to help you respond to the CRA accurately and confidently.
Generally, the CRA can reassess your return up to three years from the date of your original Notice of Assessment. However, if the CRA suspects fraud or misrepresentation, there is no time limit — they can go back indefinitely. This is why accurate filing every year is so important.
CRA My Account is a secure online portal where you can view your tax return status, notices of assessment, RRSP contribution room, benefit payments, and more. You can register at canada.ca/my-cra-account using your Social Insurance Number and one of several identity verification methods. It typically takes 5–10 business days to receive your access code by mail or can activate it with your government ID online.
Yes. CRA-certified software (including EFILE, which S & M Tax Services uses) transmits your return using bank-level encryption. Filing electronically is actually more secure than mailing paper returns and results in much faster processing and refunds — typically within 2 weeks.
Call us at (647) 800-6769 or visit our contact page — we're happy to help.