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Hello,

 

Can anyone help me with filing a tax return for 2011. I worked for a flower shop full time for 8 months but I sent them an invoice every two weeks for my hours worked. I didn't pay taxes, EI, CPP or anything like that so I know I am going to owe money. I also don't have a business number or anything like that and didn't keep receipts for any expenses. Also, I should be getting a large refund for 2012, will they just subtract the money owed from that amount? Is there any boxes I need to check to make sure this happens or do they figure that out on their end?

 

Any help would be greatly appreciated!

 

Thank you,

Craig

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You must include in your tax return all income earned from self-employment. This may be business, professional, commission, farming or fishing income. To enter this amount in the program, please follow the steps below:

 

1- In the "QuikClik Navigator", on the left-hand side of the screen, select "Interview setup".

2- On the page that appears on the right, select the "Self-employment business income" and click "Next".

3- Return to the "QuikClik Navigator", click on the line "Self-employment income" and select the option that corresponds to your situation on the right-hand side page. Furthermore, if you wish to pay your registration fees for Quebec, you must choose the option "Annual fees in Quebec".

4- On the "Business identification" page, enter the name of your business on the line "Name of the professional business (or your own name, if the business does not have one)", then enter the other information in the mandatory fields marked with a red asterisk.

5- In the field for "6-digit code from the North American Industry Classification System", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) on the right-hand side of the box to get it.

6- Subsequently, after identifying your company, a sub-menu will appear in the "QuikClik Navigator" to allow you to enter "Income & expenses", "Motor vehicle expenses", "Home office expenses" and so on.

 

The program will also generate federal form T2125, as well as Quebec form TP-80 if applicable.

 

Furthermore, we recommend that you read the T4002 guide published by the CRA, for more information on what qualifies as a business expense.

 

For more information, please visit the following link:

http://www.cra-arc.gc.ca/E/pub/tg/t4002/

 

For Quebec residents, we suggest that you consult the "Business and Professional Income" guide, published by Revenu Québec. You can visit the following link:

http://www.revenuquebec.ca/en/citoyen/impots/rens_comp/particularites/revenus.aspx

 

Concerning your second question, the software will automatically calculate the amount you owe or are owed.

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So because I didn't keep any receipts while I was working then I can't claim any expenses, correct? Does it sound right that for $14, 631 made in 2011 that I owe $1,359.54 in income tax? That seems a little steep.

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Yes, any elegible expenses need receipts to justify them.

 

As for the tax on that amount, that might be correct. It depends on several things but don't forget that as a self emplyed person, you end up paying both the emplyer and employee amounts for CPP. Then there is EI and income tax, and any other extras can can depend on the province you're in.

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5- In the field for "6-digit code from the North American Industry Classification System", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) on the right-hand side of the box to get it.

 

I clicked on the tool tip and it tok me to the site to get the code. However, it says that you can only use these codes if you are filing by paper. For filing electronically your tax program will provide the right code. I have sent a customer support e-mail but haven't received a response yet. I did try the code provided for paper filing but it was rejected. Can you please help.

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As for the refund from 2012, it will come to you if the 2011 hasn't been processed yet. If you want CRA to hold it, indicate to transfer the refund to your 2013 installment account and then once you get assessed for 2011, call CRA to transfer the amount to 2011 (and release any additional amount). that way the payment would be treated as paid with an effective interest date of when the refund was processed and you will save on interest charges. 

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