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 moving from another province. The surtax is a percentage of Ontario tax payable, not of income, so once it starts it rises faster than income. The Ontario Health Premium is a separate charge added through the return, not a payroll deduction. Neither shows on a pay stub, which is why a large one-year dividend can surprise a Hamilton owner.

When the income comes from your own company

Many Hamilton owners also run a corporation, so their return depends on how money came out. Salary on a T4 builds RRSP room. Dividends on a T5 are grossed up and offset by the dividend tax credit, and because Ontario’s surtax is calculated on provincial tax, a large dividend can raise it more than the same salary. We prepare the T1 and T2 together so the split is decided once. Corporate tax in Hamilton covers the company side.

Dividends paid to a spouse or adult child who does not work in the business can fall under the tax on split income, taxed at the top rate whatever else they earn. A reasonable salary for real work is usually fine. We check who receives what before any dividend is declared. Tax on split income and paying your spouse a salary cover both routes.

Self-employed in Hamilton

Self-employed people report business income on form T2125 inside the T1. Filing moves to June 15 for you and your spouse, but the balance is due April 30, with interest from then. Vehicle, home office, tools, phone and insurance each have their own rules, and claims need records. A self-employed T1 commonly costs $275–$500. Self-employed tax returns sets out what we need from you.

Instalments once the tax adds up

If net tax owing is more than $3,000 this year and in either of the two previous years, the CRA expects quarterly instalments on March 15, June 15, September 15 and December 15. The self-employed and dividend-paid owners hit this first, since nothing is withheld. The CRA’s suggested amounts follow history, not this year; we check whether they fit. The instalment calculator shows the method.

A rental unit in the house

Many Hamilton houses have a second unit, such as a basement apartment on the Mountain or a coach house in Dundas. Rental income goes on its own T1 statement, with a share of mortgage interest, property tax, insurance and utilities deducted for the rented part. CCA on the house itself can later cost you the principal residence exemption on a sale. We show you the split and the trade-off first. Rental income returns covers the details.

Selling a home, or moving to Hamilton

Many Hamilton households moved from the GTA, selling one home and buying another. The sale must be reported even when the exemption covers the whole gain; a missed designation can cost the exemption. A job move may also bring deductible moving expenses. We check the year of sale and fix any gap. The principal residence exemption covers the rules where part of a home was used for business.

Remote, and no Hamilton office

EverStone is an online, CPA firm with no Hamilton office. With your authorization we pull your slips from the CRA; the rest comes through a secure upload link. We review the return with you by video or phone, then you sign electronically.