Taxes 2014: Compendium of Links & Resources for Filing 2013 Income Tax

Tax season is starting. The Canada Revenue Agency will soon open up the NETFILE online electronic tax filing service to receive returns electronically. It's time for Canadian investors to start getting ready for filing their 2013 income tax return. There can be a multitude of slips and receipts to assemble, not to mention older records to dig up and preliminary calculations to do in order to be ready in time for filing on or before the deadline of April 30. We therefore present a collection of resources that should cover the tax information and tools needs of Canadian online investors.

Tax-specific Websites

• Canada Revenue Agency - the official source, with forms, bulletins, guides, helpful videos like a primer on the filing process, due dates, info on tax credits and deductions to keep in mind when preparing a return, instructions on NETFILE to submit a return electronically with list of approved software; good search tools, FAQs and topic directories
• Taxtips.ca - rules, tips, tax rates, federal/provincial budgets, accounts (RRSP, RRIF, TFSA etc), glossary, calculators
• Taxes.ca - lists of tax professionals by province and/or city, plus formal accreditations

Key Dates -  see complete CRA list of dates for individuals
 

January – mid	CRA pdf tax forms for printing available for download
February - 10	CRA online filing service NETFILE starts accepting 2013 tax returns; last day is January 16, 2015
March – 3	RRSP contribution – last day for making contribution applicable to 2013 tax year
April – 30	CRA – last day to file 2013 return and pay amounts owing to avoid penalties
June – 15	CRA – last day to file 2013 return for self-employed though amounts owing deadline is still April 30
December – 31	RRSP – last day for making an RRSP contribution in the year you turn 71
continual	CRA issues tax refunds, often within days, if return is filed electronically TFSA contributions anytime during year for 2014 or missed past years since 2009

CRA dates are rigid; be late even by a day and you will miss out or suffer penalties. On the other hand the tax documents below relating to the 2013 tax year flood in progressively from mid-January to the end of March. There can be weeks or more of variation amongst companies that issue the slips and receipts.

Checklist and guide for interest, dividends and capital gains
 

If your investing involves …	look for these documents …	from these organisations ....
Borrowed money to invest	Investment interest expense	on statements from broker for margin, or bank for loan
Canada Savings Bond interest	T5 slip (min $50 interest)	from broker if held in a broker account or from Bank of Canada if bought directly from BOC;
GIC interest	T5 slip (min $50 interest)	from broker if held in a broker account or from bank or trust company if bought directly
T-Bill and Stripped Bond interest	Annual summary of security transactions	Interest = redemption/sale amount – purchase cost; for details see http://howtoinvestonline.blogspot.co.uk/2011/03/how-to-calculate-interest-and-capital.html T5 does NOT show it, even when over $50 e.g. http://www.rbcds.com/TaxReporting/tax-information-checklist.html
Mutual fund distributions	T3/T5 slips	mailed directly by Mutual fund companies, NOT brokers, even when fund is held in a brokerage account
Mutual fund capital gains (sales)	Annual summary of security transactions	from broker if held in a broker account  or, from mutual fund company if held directly with the mutual fund company  click on links to fund companies at FundLibrary.com and then look for tax or Distribution info see http://howtoinvestonline.blogspot.co.uk/2009/01/etfs-and-mutual-funds-calculating.html
Bond interest	T5 slip (min $50 income)	broker
Bond capital gain or loss (sale or maturity)	Annual summary of security transactions	broker provides statement at purchase year and at maturity or sale; for how to calculate see http://howtoinvestonline.blogspot.co.uk/2011/03/how-to-calculate-interest-and-capital.html
Stock dividends	T5 slip (min $50 income)	broker
Stock capital gain or loss (sale)	Annual summary of security transactions	broker provides statement at purchase year and at maturity or sale
ETF and REIT distributions	T3/T5 slips	broker
ETF, REIT, Income Trust, Closed End Fund capital gain or loss (sale)	Annual summary of security transactions + own records	broker for trading transaction summary Investor must track own adjusted cost base – see http://howtoinvestonline.blogspot.com/2009/01/etfs-and-mutual-funds-calculating.html ETF providers publish tax breakdown of distributions on their website. ETF providers in Canada list and links at http://www.tmxmoney.com/en/sector_profiles/exchange_traded_funds/funds/funds.html Income Trusts and Closed-End Funds - ACB Tracking Inc has a pay service that simplifies the tracking
Split Corporation income	T5	broker

Checklist and guide for account withdrawals, contributions
 

If your investing involves …	look for these documents …	from these organisations ....
RRSP contributions	RSP Contribution Receipt	RRSP account trustee, be it broker, bank, mutual fund company
RRSP contribution room	various	see four ways to find out - http://canadaonline.about.com/cs/rrsps/qt/rrsplimit.htm
RRSP / RRIF / LIF / LRIF withdrawals	T4 RRSP / RRIF slip	RRSP/ RRIF account trustee
RRIF / LIF / LRIF withdrawal limits	Evaluation letter or phone call	broker
Annuity payouts	T4A and T5 slips	mailed by insurance companies, both for registered or non-registered annuities
RESP withdrawals	T4A Educational Assistance Payment or Accumulated Income Payment slip	brokers or financial institution where RESP is held
Non-resident taxpayer	NR4 slip	broker
TFSA interest, dividends, capital gains, contributions and withdrawals	none	None – happy days! No tax reporting to do
TFSA contribution room and contribution or withdrawal history	phone call or online	Canada Revenue Agency – see http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html

Tax News, Tips and Blogs - to remind us of the latest developments, the implications, the gotchas and possible strategies to legitimately minimize what we pay

• Grant Thornton Domestic Tax Service - accounting firm provides tax news with tips for individuals
• Ernst & Young Managing Your Personal Taxes 2013-14 - includes 13 pages on investing, plus sections for families and retirement in the 108 page guide
• Journalists/ Authors - Tim Cestnick, an accountant, author and columnist (Globe and Mail) who did a series of videos on YouTube starting with episode 1, Jonathan Chevreau (MoneySense), Larry MacDonald (Canadian Business), Canadian Couch Potato, Jim Yih (Retire Happy)
• Accountants / Lawyers - Canadian Tax Resource, The Blunt Bean Counter, Estate Debate
• Individual Bloggers - Michael James on Money, Canadian Capitalist - gain from their experiences but be aware that they are not professionals and their opinions are just that, not advice, as is the case with this blog

 Books - buy them online, read them offline at leisure

• Tax Planning for You and Your Family 2014 by KPMG accounting professionals from Carswell Publishers - intermediate level; about a third of the book deals with investment-related topics
• Tax Guide for Investment Advisors, 2014 Edition by John R. Mott, also from Carswell - advanced level, dense and detailed; everything most investors would want or need to know, short of becoming an accountant
• Many starter-level titles are available at Chapters or Amazon
• Canadians Resident Abroad 2014 by Gary Duncan, from Carswell - investments are among tax topics covered for non-residents or the many Canadians who have interests in the USA

Software - to prepare and NETFILE income taxes electronically; the best packages guide you and make suggestions to optimize your taxes

• List of CRA-certified programs with links to the companies 
• Wikipedia - basic details on costs, versions, price, limitations, freebies  
• CanadianFinancialDIY on the web versions - evaluations and ratings on security, user-friendliness, speed, tax-minimization performance

HowToInvestOnline Tax-related Posts - our most popular and presumably most useful tax posts

• How to Calculate Interest and Capital Gains for Tax on Bonds, T-Bills, GICs, CSBs
• Save Tax by Income Splitting with RRSP, TFSA, Loans and Pension Income
• ETF and Mutual Fund Distributions Explained
• ETFs and Mutual Funds - Calculating Capital Gains
• Income Trust Tax Issues for Investors
• Taxes on Foreign Investments
• Tax Loss Selling Explained: What, Why and How
• The Annual Investment Review: Part 2 - Tax Matters (tax planning ideas)
• Five Tax Tips for Investor Couples and Families
• Five Tax Tips for Investors: Capital Gains, Foreign Investments and Charity
• Five Last Minute Tax Reducers for Investors
• How Your Province, Income Level and Investment Choices Affect Your Income Tax
• ETF Asset Allocation across RRSP, TFSA and Taxable Accounts
• How to Calculate Capital Gains and Other Income Taxes on ETFs
• Comparing Tax Characteristics of US Equity ETFs
• Income Tax on Dividends: How to Cope with the Myths and the Realities
• Tax-Adjusted Asset Allocation
• Return of Capital - Examples of Good and Bad among ETFs
• Foreign Income & Assets - Avoid Nasty T1135 Trouble
• Saving Taxes on Investments at Death
• Tax Planning for Investors in or near Retirement: Age Credits and OAS Clawbacks

Tax Calculators - for tax planning, what if scenarios and estimation

• Taxtips.ca Canadian Tax Calculators - a Basic version, an Advanced version for all provinces except Quebec, one for Quebec, with all the tax credits and a special Investment Income version that compares different types of income, especially useful for retirees.
• Ernst & Young - ultra-simple, enter your taxable income and it shows you by province total tax (using the basic personal tax credit only) as well as marginal rates on ordinary income/interest, capital gains and dividends;  very handy when you have a taxable and tax-sheltered investment accounts to see which types of securities should go in which account
• RRIFMetic - sophisticated tool (not free, costs $99) for planning and optimizing for retirement income including taxes on types of accounts (taxable, RRIF, LIF, TFSA, RESP) and types of income (dividends, interest, capital gains) plus factors in non-investment cash flows; helps decide how much to take from which account during retirement.

Tax Discussions - read what other people are grappling with and learn from their experience or register and you can take part, ask questions and perhaps get good answers

• Financial Webring Tax Forum - active contributors have banded together to produce finiki, a Canadian financial wiki, which covers tax issues amongst financial and investment planning topics
• Canadian Money Forum Tax Thread

These resources will make it easier to pay your taxes quickly with minimal frustration at the very least and probably to pay less as well.

Disclaimer: this post is my opinion only and should not be construed as investment or tax advice. Readers should be aware that the above comments are not an investment recommendation. They rest on other sources, whose accuracy is not guaranteed and the article may not interpret such results correctly. Do your homework before making any decisions and consider consulting a professional advisor.