Personal Finance

Best place to do your taxes? I am self employed (as of 2 years).

  • Last Updated:
  • Nov 12th, 2018 10:21 am
[OP]
Member
Jan 29, 2008
322 posts
27 upvotes

Best place to do your taxes? I am self employed (as of 2 years).

I submitted my 2017 taxes but I need to edit them too incorporate my online business income numbers, as well as get my 2018 taxes done as soon as 2018 rolls around so I can lock in a mortgage. My current tax guy is a little slow so I am looking to move to another place/establishment. Looking for a reliable trustworthy place that is decent on cost (I assume self-employed can get pretty expensive?)

January 2017 I started earning full-time income online. As it was my first year earning online income I did not really know what to submit so I didn't tell my tax guy about the online income until last minute (my mistake, I know). My tax guy filed my taxes for my other part-time job, but did not include my online business #'s and said we will edit your taxes. He just had to get my other stuff in on time or I would've had to pay a penalty. It has been many months and I have not heard from him in a while so I am looking to go elsewhere to edit my 2017 taxes to include my business income #'s, as well as be ready for when 2018 rolls around.

I have been told I can do it online myself and not pay fee's to someone to do it. To be honest I am quite new in this area and do not want to screw something like this up. Last thing I want is to be audited.

In your opinion what are some of the best places to get your taxes done in southwestern Ontario?
And on a scale of 1-10 how difficult is it to do your own taxes if you are self-employed?

Thank you in advance.

Looking forward to your responses.
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10 replies
Penalty Box
User avatar
Dec 13, 2016
2248 posts
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Got gst hat number?

Made over 30k in sales?

You should do your own self employed income tax. Just use tax software. It's easy and less chance for someone to screw it up.
[OP]
Member
Jan 29, 2008
322 posts
27 upvotes
BiegeToyota wrote:
Nov 8th, 2018 11:47 pm
Got gst hat number?

Made over 30k in sales?

You should do your own self employed income tax. Just use tax software. It's easy and less chance for someone to screw it up.
Thanks for the reply brother. I do not think I have a HST or GST number.

Yes over 30k in sales both years.

How difficult is it to do my own taxes with software? Do you file your own self-employment taxes? Do you know if it is possible to edit my 207 taxes with software?

Cheers.
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Deal Addict
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Mar 9, 2012
1696 posts
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Kitchener
fix23 wrote:
Nov 8th, 2018 9:17 pm

And on a scale of 1-10 how difficult is it to do your own taxes if you are self-employed?
I was self-employed for about 23 years until getting full-time with the T4, although I still have self-employment.

Of course, regular tax returns are much easier than self-employment. My business income I would use form T2125 to figure out my net business income (just mentioning this because you might use a different form).

On a scale of 1 to 10 with 1 being easy peasy and 10 being I'd rather have my eye gouged out, I'd say a solid 5 or so.

What I would do is start getting all documents (expenses and income) put together, start calculating, start inputing data, and eventually validate the return. I normally would take a couple weeks for all this, though I was no working on it every day, and when I did work on it, I limited myself to an hour here an hour there. It's not horrible by any means, it's just not a walk in the park.

One thing to keep in mind, return is due June 15, but balance owing is April 30.

I use Studio Tax for my calculating my taxes, and Microsoft Excel to calculate expenses and income.

GST/HST: You need to get that figured out, since your income is over $30,000. Get your Business number (go to My Business Account (CRA)) to get that number which can also be your HST/GST number. Not collecting HST on $30G plus income will cause issues for you down the road.
Well, I am not a crook.
[OP]
Member
Jan 29, 2008
322 posts
27 upvotes
jeff1970 wrote: I was self-employed for about 23 years until getting full-time with the T4, although I still have self-employment.

Of course, regular tax returns are much easier than self-employment. My business income I would use form T2125 to figure out my net business income (just mentioning this because you might use a different form).

On a scale of 1 to 10 with 1 being easy peasy and 10 being I'd rather have my eye gouged out, I'd say a solid 5 or so.

What I would do is start getting all documents (expenses and income) put together, start calculating, start inputing data, and eventually validate the return. I normally would take a couple weeks for all this, though I was no working on it every day, and when I did work on it, I limited myself to an hour here an hour there. It's not horrible by any means, it's just not a walk in the park.

One thing to keep in mind, return is due June 15, but balance owing is April 30.

I use Studio Tax for my calculating my taxes, and Microsoft Excel to calculate expenses and income.

GST/HST: You need to get that figured out, since your income is over $30,000. Get your Business number (go to My Business Account (CRA)) to get that number which can also be your HST/GST number. Not collecting HST on $30G plus income will cause issues for you down the road.
Thank you very much for your reply! A solid 5 isn’t too bad. Perhaps I’ll give it a shot and have someone look over it!

Also, in your opinion, and anyone else’s, should I register as a sole proprietor? I run a dropship website and a eBay store. Everything I sell is shipped from China to around the world. I do about 40-60k a year (last 2 years)

Thanks again brother!
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Penalty Box
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Dec 13, 2016
2248 posts
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You absolutely need to register for gst/hst number. At this point it is more important than accountant.
Sr. Member
Nov 13, 2006
782 posts
405 upvotes
Guys she does not need an HST number as all her sales are outside of Canada.

"Foreign customers (outside of Canada)
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada. The service must be wholly used outside of Canada"
[OP]
Member
Jan 29, 2008
322 posts
27 upvotes
asifnana wrote: Guys she does not need an HST number as all her sales are outside of Canada.

"Foreign customers (outside of Canada)
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada. The service must be wholly used outside of Canada"

Most of my sales are outside of Canada, but I do get a good amount of sales in Canada as well. Hmm what do you think?

Thank you!
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Sr. Member
Nov 13, 2006
782 posts
405 upvotes
fix23 wrote:
Nov 12th, 2018 1:51 am
Most of my sales are outside of Canada, but I do get a good amount of sales in Canada as well. Hmm what do you think?

Thank you!
Yes, if your worldwide income (international and domestic) will be more then 30,000 you will need one. When you do your HST return you will include the HST charged to the customers in Canada only, however, in the sales you will need to show both the zero supply sales and the hst sales.
Member
Nov 12, 2014
446 posts
248 upvotes
Kingston, ON
asifnana wrote:
Nov 9th, 2018 9:14 am
Guys she does not need an HST number as all her sales are outside of Canada.

"Foreign customers (outside of Canada)
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada. The service must be wholly used outside of Canada"
Not true at all. Sure the sales are zero-rated, but that doens't preclude registration for it....also they can claim ITCs on expenses of zero rated supplies, so it's a benefit to register.
Sr. Member
Nov 13, 2006
782 posts
405 upvotes
QN5252 wrote:
Nov 12th, 2018 10:15 am
Not true at all. Sure the sales are zero-rated, but that doens't preclude registration for it....also they can claim ITCs on expenses of zero rated supplies, so it's a benefit to register.

That is if the ITC's are worth it. From what I am reading and her scenario she has VERY LITTLE ITC's to claim, only a small portion of her internet bill which is going to be max 4$ a month in ITC's. If she gets an accountant to do her hst return I am sure the accountants fee will break-even the HST ITCs. Her cost of goods sold have no ITCs so nothing to claim there either.

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