How to prepare your own taxes for your small business

Taxes!!! Are you procrastinating like I am?

I am getting ready do my own taxes this year because I feel that the accountants I have used haven’t really been so amazing at saving me money and I hated having to meet them at their convenience i.e. he sometime shows up late to his own office.

So, it’s mid-April already and I haven’t done my taxes yet. I usually have everything ready end of March, but for some reason, I have found soooo many other things or excuses to do that felt way more important, or fun, like…

  • write this blog post
  • prep dinner
  • schedule in when to have a girls night
  • review Amazon
  • see what’s for sale on Kijiji

COME ON Tina!!! I know, but I just can’t seem to get into it. However, it’s crunch time. I finally sat down on Friday April 14th and read and listened to videos for a few hours on trying to figure out which software to use. I finally decided on Studio Tax. It’s not bad and they have videos to help you, which is very good, but if you’re partly self-employed, they don’t really have anything on that. So, I called a friend who use to work for them and she told me to use the Commission form as it has the income and expenses on it.

Before I start to use the software, I needed a few things.

What do I need to do my own taxes?

I did some research and thanks to Jessica Moore found a list of things I need in order to prepare to do my taxes.

Now, doing this, I will also need my Man’s information as we live together. Thank God I am not doing his taxes tooJ. I think that might stress me out.

So, here what you and I will need to do our own taxes.

  • Last year’s tax return for me and My Man
  • Plus the Notice of Assessment and Reassessments for me
  • Tax software like Studio Tax. I chose this one because it’s free
  • My bank account details to let them know where do I want my deposit to go. Hey, I am praying for refund.
  • My Man’s date of birth, his social insurance number and is total revenue. I hate asking about this because it’s his hard earned money and I don’t need to know.
  • Revenue Canada account login details.
  • Marital status, social insurance number and whatever you do…don’t lie to the TAX MAN! They will find out. Maybe not now, but they have up to 10 years to come back and collect!

Paper work needed to have on hand

  • Income Slips (T4s)
  • Bank statements like credit card, loans or fees you paid. After all, the bank can collect, so why can’t you.
  • Statement of Remuneration Paid T4A (I think this is from the banks when they give you interest)
  • Other Income forms T4A (this would be for places you work part time? I got one from the Ottawa Carleton District School Board when I taught evening marketing classes there)
  • RRSP (Registered Retirement Savings Plan) receipts
  • Medical receipts like physio, chiropractor, massage, orthopedic, etc. anything that you had to pay for out of pocket.
  • There are many others, but they don’t apply to me. Go to the CRA website to see what else you can claim.
  • Business expenses (gas, printer cartridge, gifts, computer repair, car repair)
  • Charitable donations
  • Rent
  • Vehicle expenses (i.e. kilometers driven, vehicle purchase)

Once you have all your papers together, sort them in the right header like above. Then, when you are ready, go to the CRA website and find the software.

Oh, and I was having trouble finding my paper work which was also why I procrastinated because I had to go through the bank to get statements, and CRA to get my notice of assessment.

Well, it’s now Saturday and…I finished my taxes and…CRA owes me a refund😊…They better! I put so much into RRSP, I feel like I should get way more, but I will be happy with the $2K that I will get.

You may ask for a recommendation and I really can’t because I only tried Studio Tax, but I did try Turbo Tax 10 years ago and I liked it them. There are many to choose from on the CRA website. Talk to a few other people and see what they used, or if you prefer, get a tax expert to do it. I decided to do it myself this year because I didn’t have many expenses and he wasn’t worth $110!

Look, if you’re not making much money in your business yet, I would go with the free ones for now. You can find them on CRA website under Free Products. Good luck.

If you try the others, please share your experience and which do you prefer.

 

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