TAX TIME! Here is how I prepare!
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Alright @everyone, so time to prepare your taxes...
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For my accountant, it's:
Karan Narang of PPATax
Tel: 519-946-2921 ex. 109
Email: knarang@ppatax.com
Website: http://ppatax.com/)
*If you go with him, please let him know, Kat Ann, sent you!
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The very first thing I do in my email to my accountant is state my residency status.
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I would assess which country I am likely to be a tax resident of. Here is an excellent webinar Karan did with us to serve as an overview on residency: https://www.youtube.com/watch?v=Dh7ystnuXNY And here is more info from the CRA https://www.canada.ca/.../determining-your-residency...
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*** If unsure which country you are a tax resident of, discuss this with your accountant. You do not get to choose which one and most intake forms for accountant firms will ask you to tick off which one you are. If uncertain, do not guess or try and pick for yourself. Leave it blank and let them know, you aren't certain which country you are a resident of and they will help you find out based on your unique situation. Guessing or thinking they could pick which one has resulted in nurses being filed inaccurately. Understandably, accountants are extremely busy and these intake forms are a huge part of what they base their filings off of; so, it is important to be very accurate on them or admit when you don't know or need help with them.
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Next, this is the tedious part, but I like to go through a physical folder I've kept all year and filled with receipts, a file folder on my desktop computer, my emails for the tax year, and I scroll through my bank and credit card statements. This is how I usually catch several possible things that could count as deductions.
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- Grab your T4s for all Canadian employers (and any summaries for any independent contracts).
- Grab your W2s for all agencies you've worked for in the States.
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In the email, here is how I put it: W2s & T4s
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Next, I put: Deductions for (insert the headings below)
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I also rename each image I upload of my receipts as a letter and number each item under each deduction heading for easy referencing for the accountant. (e.g. Health-Related Expenses: and the first receipt and deduction I want to claim will be 'A1. Dentist, $250 CAD' and then the receipt attached to the email will be titled 'A1.Dentist')
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✅ Housing documents/costs
Your stipends will cover your housing; so this isn't a deduction, but I'd include any tenant insurance you purchased and would submit that in case it might be covered. I would also include any costs to Canada Post to forward your mail to your address on assignment in the States.
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❌ Auto repair insurance/repair/mileage
This used to be a deduction on the American side since we travel for work, but that has since gone. There is no need to submit any of these.
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✅ Emergency Travel Medical Insurance
I'd include this. There may be some debate about how the Meals & Incidentals stipend should include this; but as all Americans need health insurance, it is hardly a 'incidental'. And for us Canadians, it is not an expected cost, but rather a work-related cost (due to working in the U.S.).
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✅ Healthcare Related Expenses
Prescription costs, dental costs, chiro/massage, eye doctor/glasses, etc.
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✅ Work Visa Costs
This includes any non-reimbursed things like your VisaScreen, TN visa fee at the border AND all of the costs involved in sending your transcripts, colleges of nursing verifications, etc. to CGFNS. Don't forget about those!
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✅ Provincial & State Licensing Costs
This includes any non-reimbursed things like your state license, fingerprinting, etc. I'd even include any related costs like gas to head to the U.S. if you had to get your fingerprints done there, etc. AND don't forget all of the costs involved in sending your transcripts, colleges of nursing verifications, etc. to the state(s) you applied to. Other things some forget are costs to notarize your SSN to send in to your state (e.g. MA requires this). It's not expensive, but may as well include everything! And this includes your Canadian provincial license renewal fees and any state renewals fees too.
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✅ Nursing Supplies
There is some debate about this. I still submit everything since it doesn't take long, and if my accountant can get them as a deduction for me in one country or the other, I'll take the deduction! I include shoes, scrub caps, lanyards, badge reels, support stockings, scrubs, stethoscopes, etc. purchased. Some say a stethoscope is a capital purchase. I'm not entirely sure, so I just include it anyways with a note to my accountant that I'm not sure if it counts.
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✅ Parking Costs
Any work-related parking costs.
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✅ Union Dues & Professional Membership Fees
Although more unique to if you keep a job or worked a job in Canada, you can typically find this number on your T4s for any hospitals worked. I just highlight it to bring it to my accountant's attention.
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✅ Liability Insurance
I include both the one I pay for in Canada and the NSO one I buy when in the States.
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✅ Tax Filing Fees
Funny enough, paying your accountant is a deduction so I'd include last year's tax filing fee and any other fees as a deduction too.
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✅ Charitable Donations
Include any registered charities you donated to throughout the year. They should send receipts by the end of February.
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*** If I am missing any deductions, do let me know in the comment section below so we can all save $!
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*** If there is interest in an email template to send to your accountant, I could maybe make one up. TBA on this!
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Next, I take pictures of all physical receipts, and save as pdfs all email receipts.
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Remember to hold onto your receipts for next year's filings too!
... And keep all receipts for 6-7 years in case you are ever audited. I'd suggest moving them to another folder labeled with the year to keep it separate.
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Also, note, in my email to my accountant, I put USD next to everything in US dollars. And I put CAD next to everything in Canadian dollars. Accountants have a set number for the conversion rate that the CRA averages out for the year so they can deal with that, but I just would suggest pointing out which currency you earned or spent the money in.
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In the conclusion of my email to my accountant, I include my previous U.S. and Canadian tax returns attached to the email for the prior year. And any additional info or CRA correspondence sent to me.
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After gathering everything together, contact Karan Narang of Pioneer Professional Accountants Inc. and if you go to him, please let him know Kat Ann sent you! 🙏🏻 💕
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Here is his contact info...
Karan Narang of PPATax
Tel: 519-946-2921 ex. 109
Email: knarang@ppatax.com
Website: http://ppatax.com/)
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Major Pros:
- Very responsive, even during the busy tax season. Both through phone and email.
- Very patient and reassuring
- On the subject of reviews/audits he put it like this, "You just forward it to us and boom, that's it. We take care of it. You don't need to think about it again" which was pretty reassuring.
- Base rate of $450 (additional forms often cost extra or the more complex your tax situation).
- They are based in Windsor, but everything is done online/on the phone).
- He has done some excellent webinars for us.
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After that, you should expect some follow up emails from your accountant requiring signatures on several things. Then you are done...
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...Until the CRA possibly reassess you in approx. July/August and award $0 in foreign income tax credits until you send them your U.S. return information. This happens often where the CRA hold the income taxes you paid to the States randomly until you can prove it, and if you paid more or got a refund from the States. Then they'll review it again taking the new numbers into account. Here is a webinar with Karan on those CRA Reviews: https://www.youtube.com/watch?v=qY6T4vjPtA4https://www.youtube.com/watch?v=qY6T4vjPtA4
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Again, please let him know Kat Ann sent you if you decide to try him! As a group, I'd like it if he keeps giving us a healthcare heroes discount. 🦸🏻‍♀️And it helps support the group! 💕
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Cheers! Happy tax filing everyone! 📌
Kat Ann