A couple of times out on set, I've been asked if I knew any quick and easy ways to prepare a personal income tax that didn't cost. This last point is expecially crucial considering we "background actors" work in special circumstances.
Extras and actors are considered by Revenue Canada as self employed, and are therefore entitled to some unique perks. Such as the ability to deduct much of their professional fees, utilities, and travel expenses. Many of whom I have talked to do not realize that we were entitled to these deductions or just the percentage of the gross sum on the T4A that was allowable.
Before 2004 I did my income tax the old fashioned method, trying to figure out all the calculations with my trusty HB pencil, ending up with a tax form that looked like swiss cheese. Last year I found out about a FREE online service designed for people in my position, short of funds and short on patience.
QuickTaxWeb is the convenient online solution for preparing and filing your personal taxes with accurate calculations. If you prefer the freedom of preparing your tax return from any computer connected to the Internet, QuickTaxWeb is the perfect choice.
QuickTaxWeb is designed to maximize your tax savings, and minimize the time you spend on tax preparation. QuickTaxWeb is an online tax preparation product from the makers of QuickTax, Canada's #1 best-selling software.1 Unlike software products that you purchase in a store and install on your computer, QuickTaxWeb resides on Intuit's secure Web servers and works without downloading the software onto your computer.
QuickTaxWeb is very user-friendly and net filing my return was simple and quick.
Marian Wong
Simplify tax preparation. Answer simple questions in plain language - QuickTaxWeb places your answers in the right forms and performs all the calculations automatically!
Save time. There's no software to download and on average QuickTaxWeb takes less than half the time to prepare your taxes than with pencil and paper.2
Work at your own pace. Access your tax return whenever and wherever you have Internet access.
Avoid hassles. FREE technical support means there's always help when you need it, 7 days a week.
Speed up your refund. Get your money in as little as 8 days with NETFILE (Please Note: For the 2005 tax year the Canadian Revenue Agency's on-line transmission process, NETFILE, will be available February 13, 2006.) 3
Maximize your Refund. The average refund for online tax preparers is 20% higher than the refund received by pencil and paper preparers.4
Online preparers: 83% received a refund; Average refund = $700
Manual preparers: 68% received a refund; Average refund = $585
Prepare and file your taxes in 4 simple steps!
Getting started with QuickTaxWeb couldn't be easier. Here's how it works:
1. Set up your account with a username and password that you choose, so it's easy to remember! Come back as often as you'd like to complete, review or change your tax return. Your information is securely stored on Intuit's servers, operating under strict security guidelines to protect your information and comply with CRA requirements.
2. Enter your tax information with the same EasyStepTM Interview in QuickTax CD-ROM products. Valuable tax tips will help you maximize your deductions as you work through your return.
3. Review your tax return one last time with Final Review. QuickTaxWeb even points out any deductions you may have missed.
4. File your return. File electronically using NETFILE, over the phone using TELEFILE, or print your return and mail it. Just $19.95 for an individual return created with the same account, and $10.00 for any additional individual returns, including a spouse. You may qualify for the QuickTax Freedom program if your individual gross income is $25,000, or less per year.
1 NPD data as of month ending July, 2005.
2 Ipsos-Reid Customer Satisfaction Study 2001.
3 Some restrictions apply. Visit www.netfile.gc.ca for details.
4 Tax Year 2004 Commins Wingrove Usage & Attitude Study, July 2005.
Account sign up
I am also including a sample step by step 2005 Canadian income tax return for the typical persons in the acting and background field, including the typical types of deductions one would have. All figures and names are purely made up, but are similar to one might have.
INTRO
Mr/Mrs Joe Average Canadian
Single filer in Ontario
no dependants
Personal Profile
self employed(extra work)
part time job
some RRSP'S
INCOME
Net employment earnings-------------------------11900.00
Pension income--------------------------------------0.00
EI benefits-----------------------------------------0.00
Dividends, interest and investment----------------100.00
--------------T5 - A Bank in Canada 100.00
Rental income---------------------------------------0.00
Taxable capital gains-------------------------------0.00
Taxable support payments received-------------------0.00
RRSP income-----------------------------------------0.00
Other income------------------------------------8,000.00
--(box 28)T4A - ABC Entertainment------1,500.00
----------T4A - DEF Entertainment------5,000.00
----------T4A - Pick Me Entertainment--1,000.00
----------T4A - ZEN Entertainment--------500.00
Net self-employment income--------------------------0.00
Social assistance income----------------------------0.00
Total Income---------------20,000.00
RRSP CONTRIBUTION SUMMARY
Some Canadian Bank (see maximum limit on your 2004 statement of return)
--------------------------------------------------500.00
DEDUCTIONS SUMMARY
Total Income----------------------------------- 20,000.00
Deductions
RPP/RRSP------------------------------------------500.00
Union or professional dues--------------------------0.00
Child and disability supports deductions------------0.00
Moving expenses-------------------------------------0.00
Carrying charges, support and OTHER-------------4,000.00
(all supported with receipts, a safe figure is between 30-50% of self-employment income although you can deduct up to 100% in special circumstances)
---------------Agent Fees-------------------------800.00
---utilities(gas,hydro,water)--------------------1200.00
---------------clothing---------------------------300.00
--------------telephone-------------------------- 500.00
other expenses(personal,home and auto insurances),1200.00
Deduction for CPP/QPP (self-empl.)---------------1000.00
Employment expenses---------------------------------0.00
Social benefits repayment---------------------------0.00
Net Income--------------------------------------14500.00
Other deductions------------------------------------0.00
Losses of other years-------------------------------0.00
Capital gains deduction-----------------------------0.00
Northern residents/additional ded.------------------0.00
Taxable Income----------------------------------14500.00
Federal Non-Refundable Tax Credits
Personal amounts--------------------------------8,648.00
CPP and EI----------------------------------------500.00
Other amounts---------------------------------------0.00
Allowable medical expenses--------------------------0.00
Amounts multiplied by 15%------------------------3000.00
Charitable donation credit--------------------------0.00
Total Federal Non-Refundable Credits-------------3500.00
Federal Credits
Federal political contribution tax credit-----------0.00
Labour-sponsored funds tax credit-------------------0.00
Federal logging tax credit--------------------------0.00
Total Federal Credits-------------------------------0.00
Refundable Tax Credits
Canada Pension Plan overpayment---------------------0.00
Employment insurance overpayment--------------------0.00
Refundable medical expense supplement---------------0.00
Employee & partner GST/HST rebate-------------------0.00
Tax deducted----------------------------------------0.00
Tax paid by instalments-----------------------------0.00
Total Refundable Tax Credits------------------------0.00
Ontario Tax and Credits Summary
Ontario Propertt Tax and Rental Credit----2000.00
the rest of your provincial tax credits are automatically calculated based on the rest of your calculations.
Total Refund $200-$500 average
Later,
Kenaz
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