VANCOUVER, March 29, 2017 – With just over a month left to complete and file your 2016 income tax return. Don’t forget, the deadline for personal tax returns and payments of any taxes owing for the 2016 tax year is Monday, May 1, 2017. Still trying to make sense of the changes for the 2016 tax year? Consult a chartered professional accountant today. To get you started with your 2016 tax return, the Chartered Professional Accountants of British Columbia (CPABC) has answered commonly asked tax-related questions:
1. How much tax do I have to pay?
The amount of tax you have to pay is based on your annual income. For the 2016 tax year, the federal income tax brackets have changed. Be sure to check them out before filing your income tax return. To reduce your taxes, check to see if you are eligible for any tax credits or tax deduction measures.
2. I’m self-employed, is my deadline for filing my income tax return different?
If you are self-employed, the filing deadline for your personal tax return is extended to June 15, 2017 for you and your spouse or common-law partner. For corporations, your corporation income tax return must be filed no later than six months after the end of each tax year (or end of your corporation’s fiscal year).
3. I was unable to use all of my tax credits last year. Can I apply them in my tax return this year?
If you were unable to use certain deductions or tax credits from a previous tax year, you may be able to use them for the 2016 tax year. Some common “carry-forward” items include:
4. Can I transfer income tax credits to my spouse?
You can transfer some income tax credits to your spouse or common-law partner. Transferable credits include the age credit, disability credit, pension income credit, your own education and tuition fee credits, and the textbook tax credit. If you are able to reduce your taxes payable to zero without using all of your available credits, you may transfer some of these unused credits to be applied on your spouse’s tax return. Don’t let your credits go to waste.
Learn more about filing your income tax return with CPABC’s RRSP and Tax Tips at www.rrspandtaxtips.com.
NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these tax tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for almost 35,000 CPA members and 5,500 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
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For more information or to arrange an interview, contact:
Vivian Tse, Public Affairs Specialist