Wednesday, February 18, 2009

Tax Preparer Vs Tax Planner

What’s the difference between Tax Preparer & Tax Planner?

A Tax Preparer is someone who helps you to file your tax return for income that you have earned and expenses that have already incurred in the previous year.

While a Tax Planner is someone who works with you to reduce your taxes and save your money for the current year.

If you want to save money, find a Tax Planner!

Either way, you have to be careful in choosing a preparer or a planner. Especially in this tax season, there are people who may know a little bit about tax but call themselves as tax experts.

If you are a business owner, I recommend you to find a tax planner that has the experience, knowledge and receive advanced tax training. They should guarantee the accuracy of their work and willing to assist you in a CRA audit.

Wednesday, February 11, 2009

2009 Tax System Indexation

On January 1, 2009, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 2.5%.

The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2009.

For 2009 the federal tax bracket thresholds are:
- 22% for taxable income above $38,832;
-26% for taxable income above $77,664; and
-29% for taxable income above $126,264.

Thursday, February 5, 2009

Rates & Maximums Chart

CPP/QPP—2009
Year’s Maximum Pensionable Earnings $46,300.00
Year’s Basic Exemption (by pay period type):
- Annual $3,500.00
- Monthly (12) $291.66
- Semi-Monthly (24) $145.83
- Bi-Weekly (26) $134.61
- Weekly (52) $67.30
Maximum Contributory Earnings $42,800.00
Contribution Rate—Employee/Employer 4.95%
Contribution Rate—Self-Employed 9.9%
Maximum Contribution—Employee/Employer $2,118.60
Maximum Contribution—Self-Employed $4,237.20

EMPLOYMENT INSURANCE—2009
Maximum Annual Insurable Earnings $42,300.00
Premium Rate (Employee) 1.73%*
Premium Rate (Employer, 1.4 x Employee) 2.42%*
Annual Maximum Premium (Employee) $731.79*
Annual Maximum Premium (Employer) $1,024.51*
*Unless a reduced premium rate applies

TD1—PERSONAL TAX CREDIT RETURN (FEDERAL)—2009
Basic Personal Amount $10,100.00
Eligible Dependant or Spouse or Common-Law Partner Amount $10,100.00
Canada Child Tax Benefit-Base Benefit $1,340.00
Pension Income Amount $2,000.00
Age 65 Amount $5,408.00
Disability Amount $7,196.00
Caregiver Amount or Infirm Dependant Amount $4,198.00
Education Amount—Full Time $400.00/month
Education Amount—Part Time $120.00/month