What to Bring – Tax Information
Please bring all information slips that you receive.
Different types of income are shown on different kinds of slips. Here are the most common slips:
- Employment income is shown on a T4. Please note that any tips you receive may or may not be shown on the T4, but they still have to be reported. It is helpful if you keep track of your tips during the year and bring that information in with you;
- Employment Insurance Income is shown on a T4E. Please note that these are not sent out by mail. You have to retrieve them on line;
- Pensions, Scholarships, some Business Income, and a variety of other income and benefits are shown on T4As;
- Income from RRSPs is shown on a T4RSP;
- Income from RRIFs is shown on a T4RIF;
- Investment Income from corporations (dividends and interest) is shown on a T5;
- Income from Trusts (including Mutual Fund trusts) is shown on a T3. Please note that T3s do not have to be issued until March 31, so you may not receive them until early in April. If you have this kind of income, you may want to wait to be sure you have all your slips;
- Income from Partnerships is shown on a T5013. These slips also do not have to be issued until March 31, and these slips are often very late in coming. If you do not have the slip by the middle of April, you should bring your information in anyway. We can do an amendment when the T5013 arrives;
- Income from Workers’ Compensation or Provincial Income Assistance is shown on a T5007. Even though this income is not taxable, it affects certain credits and benefits and it must be reported.
PLEASE NOTE: The Canada Revenue Agency has begun assessing harsh (and unreasonable) penalties on slips that are not reported. The penalties can be as high as 20% of the non-reported income, even if there is no change to the tax payable. Please be very careful and make sure you have all your slips.
- RRSP Contribution slips should be provided. The Canada Revenue Agency now requires that slips for the first 60 days of the new year (say, 2016) be recorded in the prior year’s tax return (in this case, 2015). If you bring in your slip from February 2016 with your information for the 2016 tax year, we will have to amend the 2015 return in order for you to get the appropriate credit;
- Donation receipts should be kept. If you bring in a list of your donations, we will prepare your return based on that information, but if the Canada Revenue Agency asks for back up information, you need to have the receipts available. Please ensure the slips are for the correct year.
- Political Donations result in Federal or Provincial tax credits, depending on whether the donation was to a federal party/riding association or a provincial one. Slips should be provided to ensure the donations are recorded appropriately.
- Medical expense receipts should be kept as should details of all travel for medical purposes. Here on the North Island, there is lots of travel. You need to provide the mileage, number of meals, accommodation costs, and reason for the travel. If you are claiming accommodations or meals for someone attending you, you need to be prepared to provide the reason an attendant was required. Again, if you wish to summarize all the information, we will prepare your tax return on that basis, but if your medical claim is high, the Canada Revenue Agency is likely to ask for back up information, so you need to ensure that information is available. You may be required to get a letter from your doctor;
- T2202s (Tuition Fee receipts) have to be printed off from your student account at your educational institution since they are no longer mailed out;
- Costs associated with investment income can be deducted. If you are charged fees by your advisor, a receipt for the fees should be in the tax package you receive from the advisor. If you borrowed money to invest, the interest on the borrowed money may be deductible in whole or in part. You should provide evidence of the borrowing costs.
Foster & Company will not file tax returns based on information it knows to be false or incorrect or which appears to be unreasonable.