1. Filing Deadlines
April 30: Balance owing must be paid (8% interest). June 15: Filing deadline for self-employed. US filers: Form 1040 was due April 15, file Form 4868 for extension.
Pro Tip:
File and pay what you can. The CRA late-filing penalty is 5% plus 1% per month.
2. Form T2125 Deductions
Home Office: $3,000-$6,000/year for dedicated workspace. Vehicle: $0.72/km first 5,000 km, $0.66 after. CCA: Up to 100% first-year write-off on equipment. Subscriptions: Adobe, GitHub, Figma, courses, conferences all deductible.
3. CPP Self-Employed
Pay both employee and employer portions at 11.9%, max $8,068. Employer portion is deductible on Line 22200.
4. Cross-Border Filing
FEIE: Exclude up to $130,000 USD via Form 2555. Foreign Tax Credit: Form 1116 (US) and T2209 (Canada) prevent double taxation. FBAR: File FinCEN 114 if Canadian accounts exceed $10,000 USD. Penalties up to $100,000 or 50% of balance.
5. Common Mistakes
- Mixing personal and business expenses
- Forgetting to convert USD income at Bank of Canada rate
- Not reporting all income (CRA cross-references T4A slips)
- Ignoring provincial differences (Quebec requires TP-80)
FAQ
Can I still file on time?
Yes. Payment deadline is April 30, filing deadline is June 15. A tax professional can prepare your return in 24-48 hours.
Should I incorporate?
Consider it above $80,000-$100,000 net income. Small business rate is 9% federally vs personal rates exceeding 50%.
Do Not Leave Money on the Table
Our clients save an average of $4,200 compared to self-filing. April 30 is days away.
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