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lana
01-08-2007, 10:01 AM
Hi to all self employed people on this forum.
Did you put all your papers in tact and did you call your accountants? I think it's time for that. I hate this time of year but we all have to pay taxes...:eek:

lookingforjob
01-08-2007, 11:35 AM
I haven't done anything with my taxes yet, but I'll have to bring all my papers in order very soon. I hate doing my taxes at the last moment, so I usually am ready with everything by the end of February and my accountant takes it from there...

RSTech
01-09-2007, 10:48 AM
I just ran some preliminary numbers this morning. At the beginning of the year I print the data from my QuickBooks program; I have all my expense categories in QuickBooks set up to the same names as the expense categories on the tax form. This way I just have to enter the number from my QuickBooks report into the corresponding tax line. This gives me a rough idea of how much I will have to pay. Yes, I always have to pay even though I paid some hefty installment payments this year. But I can't complain, if I'm paying lots of taxes it means I'm making lots of money. :)

Over the course of the next few weeks I will manually add all my receipts which are also filed by tax category. The added amount for each category should match the number I got from my QuickBooks report. If it does not then I start looking for the discrepency (usually a receipt I forgot to enter into QuickBooks) and then correct it.

By the time I am all done my QuickBooks report matches my receipts which matches what I fill in on my tax return. I prefer to do my own taxes so I can see exactly where my money goes and how much tax benefit each expense is. I'm sure I'm probably missing a few write offs here and there but they won't be significant; I have all the big ones such as COGS, subcontracts, auto expenses, office expenses, travel costs, meals & entertainment, tools, CCA, supplies, interest paid, telephone, training, home office expenses, insurance, memberships, shipping costs, etc. I figure the small amount of write offs that I might be missing probably wouldn't even pay for an accountant.

P.S.
I use Intuit QuickTax to do my taxes; its really easy to use. http://quicktax.intuit.ca/tax-software/index.jsp

contractor
01-10-2007, 09:48 AM
Yes, I always have to pay even though I paid some hefty installment payments this year.

Thanks for your message. I am in the same situation here. Every year!
I think it's time for me to get Quickbooks or QuickTax...

newincanada
01-25-2007, 09:17 AM
I don't own a business but I use Excel spreadsheet to keep track of my debits and credits. After all I need those records when I file my return… :(

Jenita
03-05-2007, 05:10 AM
The self-employed have unique tax concerns.Here are some Self employed tax tips.

. Keep very good records: Unlike a large company in which someone is hired to maintain records of all income and expenses, it is up to you to keep very good records, save all receipts and be able to support your deductions.

2. Office space: Whether you have a separate office facility or are using a portion of your basement or a converted den, you can deduct the percentage of your home used exclusively for business purposes. Take this percentage off of your mortgage or rent payments as well as your utilities. If you have a phone exclusively used for business, deduct those phone bills.

3. Don’t forget business expenses: Keep receipts and good records of business travel and other expenses including office supplies, postage and shipping costs, dues, subscriptions, and anything else business-related, including computer software for your business and upgrades to your system.

4. Deduct child care costs: There are allowable deductions for daycare, nanny care, babysitting and any other type of childcare provided while you are working. Take the deductions allowable. :(

srv
03-13-2007, 10:29 AM
Thanks for the tips Jenita.
Do you know how much is the allowable deductions for childcare per year?

RSTech
03-13-2007, 11:03 AM
Thanks for the tips Jenita.
Do you know how much is the allowable deductions for childcare per year?
I don't know if there is a maximum allowable deduction but you can find more details on the Canada Revenue site at http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines206-236/214/menu-e.html

lana
03-14-2007, 10:42 AM
I think you can claim up to $7000.00 per year, but again check with your accountant or with Canada Revenue.

srv
03-15-2007, 10:13 AM
Thanks for the info RStech and lana.

These forms are so complicated and unclear to me. I admire accountants - how they can read these tax forms :)
Anyway - thanks!