Be Prepared As Tax Season Has Arrived
With Canada’s tax-filing deadline just around the corner, finding a qualified tax professional will have a major impact on tax liabilities and may mean the difference between owing money at the end of April or waiting for your refund to roll in.
Of course, tax liabilities can be mitigated by making prudent financial decisions, where possible, throughout the year. And the impact of the various federal government funding programs, including the Canada Recovery Benefit (CRB) which replaced the Canada Emergency Response Benefit (CERB), will be felt once again by those who collected such benefits as a result of reduced income because of various pandemic restrictions.
“It is taxed at source,” explains Greg Garant of Greg D. Garant Chartered Professional Accountant. “It’s better than not receiving it at all, but you will certainly be re-assessed if you don’t report it.”
Beginning in September 2020, the CRB payments amounted to $1,000 every two weeks, but were later cut back to $600 and they have since been eliminated entirely.
According to the federal government, more than 627,000 Canadians relied on CRB payments to help replace the income lost as a result of losing their employment or having their hours severely curtailed by government-imposed restrictions.
“It was really helpful at a time when people needed it most,” Garant believes.
While tax season is rarely a time to celebrate, utilizing the skills of an experienced tax accountant or professional can mitigate liabilities, not only this year, but into the future as well.
Since income tax returns are considered an essential service, tax practitioners have been able to remain open during the two-year-old pandemic. Many switched to a drop-off system, others handled client returns online and others booked appointments with all safety measures in place, including masks and plexiglass shields between desks.
Pandemic or no pandemic, nothing stops the government from collecting taxes right?
So let’s introduce you now to a small cross-section of tax practitioners across our region who can assist you with filing your personal income tax returns before the calendar hits April 30.
Willson Income Tax
Founder Barbara Willson launched Willson Income Tax in 1960 after she was denied an opportunity to work with the public at her job with Revenue Canada, as it was then called, because she was pregnant with her son Mike.
“Those were the days when you’d have to work behind the scenes and there were no maternity leave provisions,” Mike explains. “My mom and dad were big baseball fans, so they decided my mom would start doing tax returns and they’d spend the money on Detroit Tigers tickets.”
Mike grew up in the business, became a partner in 1987 and took over completely when his mom, who had continued to work in the family firm beyond a normal retirement age, passed away 10 years ago.
Willson Income Tax specializes in both Canadian and cross-border income tax returns and counts many Windsor-based nurses who work in Detroit hospitals among their clients.
“Filing cross-border returns is not exactly rocket science,” says Mike, smiling. “But you could need four returns — city, county, state and federal — which can be complicated. But it’s like any other job, it can seem complicated to an outsider, but it’s not that bad when you have been doing it for a while.”
As an essential service, the business has been able to stay open year-round throughout the pandemic, albeit with limited appointments. Instead, clients have been leaving their tax materials in a drop box at the office and then picking them up again after their returns have been filed.
According to Mike there are no requirements for annual courses, but he nevertheless keeps on top of income tax act changes on both sides of the border through industry updates and newsletters.
“There’s always something changing, it seems, so you have to stay current,” he stresses.
The firm focuses on personal income tax issues and according to Mike, there’s been no shortage of clients.
“I know what we are good at and we stick to it,” he states.
Mike, who has a business degree from the University of Windsor, says the firm also helps with tax planning to help clients mitigate their tax liabilities in the future.
The vast majority of returns are now e-filed and he believes that in the near future the Canada Revenue Agency (CRA)will set up an online system so that clients can submit their materials this way and software programs will take care of the rest.
Fees at Willson Income Tax for Canadian returns are $80 with reduced fees for seniors and students.
A cross-border return costs $425 because of the added complexity.
The brick and mortar location of this LaSalle firm is 5844 Malden Road.
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