Personal tax accountant in Hamilton

Ontario sits on top of the federal return

Every Ontario resident files one T1, with the Ontario calculation on its own form inside it. Two Ontario features catch people who have moved from another province. The first is the surtax, which is worked out as a percentage of Ontario tax already payable rather than of income, so it rises faster than income does once it starts. The second is the Ontario Health Premium, a separate charge added through the return rather than a payroll deduction. Neither is optional and neither is visible on a pay stub, which is why a Hamilton owner who draws a large dividend in one year can be surprised by the result.

When the income comes from your own company

Many Hamilton T1s sit on the other side of a corporation: a fabrication shop in Stoney Creek, a contracting company in Ancaster, a real estate corporation in Burlington. The owner’s return depends on how money came out. Salary arrives on a T4 and builds RRSP room. Dividends arrive on a T5, grossed up and then offset by the dividend tax credit, and because Ontario’s surtax is calculated on provincial tax, a large dividend pushes it up more than the same amount of salary might. We prepare the owner’s T1 and the company’s T2 together so the split is decided once, with both returns in view. Corporate tax in Hamilton covers the company side.

Family members add a second question. Dividends paid to a spouse or adult child who does not work in the business can fall under the tax on split income, which taxes them at the top rate regardless of what else the person earns. Paying a family member a reasonable salary for real work is a different matter and is usually fine. We check who is receiving what before the dividend is declared, not after. Tax on split income and paying your spouse a salary cover both routes.

Self-employed in Hamilton

A tradesperson working for themselves, a realtor before incorporating, a food truck owner or a delivery driver on their own authority all report business income on form T2125 inside the T1. The filing deadline moves to June 15 for you and your spouse, but the balance is still due April 30, and interest runs from then. Vehicle use, a home office, tools, phone and insurance all have their own rules, and the claim is only as good as the records behind it. A self-employed T1 with its schedules commonly costs $250–$450 here. Self-employed tax returns sets out what we need from you.

Instalments once the tax adds up

When your net tax owing is more than $3,000 in the current year and in either of the two previous years, the CRA expects quarterly instalments on March 15, June 15, September 15 and December 15. Self-employed Hamiltonians and owners paid in dividends hit that line first, because nothing is withheld at source. The CRA’s reminder letter suggests amounts, but they are based on history, not on this year. We work out whether the suggested amounts are right for the year you are actually having. The instalment calculator shows the method.

A rental unit in the house

Hamilton has a lot of houses with a second unit: a basement apartment on the Mountain, an upper flat in the lower city, a coach house in Dundas. Rental income is reported on its own statement in the T1, with a share of mortgage interest, property tax, insurance and utilities deducted to match the part of the house that is rented. What you cannot usually claim is CCA on the house itself without cost later, because doing so can affect the principal residence exemption when you sell. We work out the split and show you the trade-off before a claim is made. Rental income returns covers the details.

Selling a home, or moving to Hamilton

Plenty of Hamilton households arrived from Toronto or elsewhere in the GTA, sold one home and bought another. The sale of a principal residence still has to be reported on the return, even where the exemption covers the whole gain, and a missed designation can cost the exemption. A move with a job change can also produce deductible moving expenses. We confirm what was reported for the year you sold and fix it if it was not. The principal residence exemption covers the rules where part of a home was used for business.

Remote, and no Hamilton office

EverStone is a one-CPA firm in Abbotsford, British Columbia. There is no Hamilton office. Slips already filed against your SIN are pulled from the CRA directly once you authorise us, and anything else comes in through a secure upload link. The return is reviewed with you by video or phone before it is filed, and you sign electronically. Hamilton is three hours ahead, so an evening email is usually answered by your next morning.