# Tax Return - Quick Tax or Hire Someone?



## Simon Says (Jan 5, 2013)

Hello all, in the past I've always had simple returns. Things are still fairly simple, I have an rrsp, resp, a few tax receipts for kids sports, things like that. My wife and I are taxed pretty high because we earn a good wage, other then that there's not much more.

Should I just stick with quick tax or do you think there's any benefit to hiring someone?

Thank you for any help!

Si~


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## Homerhomer (Oct 18, 2010)

If you understand what you are doing and only have few slips than there is no point of hiring someone, if you aren't sure what you are doing than peace of mind may be worth the fee.


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## heyjude (May 16, 2009)

It's worth hiring a professional if you have complexity, such as moving internationally, trust funds, corporations, etc. For your situation, probably not.


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## mind_business (Sep 24, 2011)

I don't really like the thought of relying on someone else to prepare my return. I think it's good to stay on top of finances, including taxes.


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## Zeeshanbmerchant (Jan 4, 2014)

You may be missing out.


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## Simon Says (Jan 5, 2013)

*Thanks*

Thanks for the advice everyone, I think I'll cover it on my own.

Si~


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## My Own Advisor (Sep 24, 2012)

DIY here. You and others on CMF are welcome to enter this TurboTax giveaway here on my site:
http://www.myownadvisor.ca/2014/01/cheer-tax-time-tax-tips-turbotax-giveaway/


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## NorthKC (Apr 1, 2013)

You have a pretty simple return and like everyone else says, if you know what you're doing (read: understand the concepts), then do it yourself.

If you have some big changes up ahead and exploring RRSPs, non-registered investments, etc, it never hurts to speak with an accountant AFTER tax season when we have more time to assist you to make sure that you're on the right track.



Simon Says said:


> Thanks for the advice everyone, I think I'll cover it on my own.
> 
> Si~


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## Eclectic12 (Oct 20, 2010)

Simon Says said:


> ... in the past I've always had simple returns. Things are still fairly simple, I have an rrsp, resp, a few tax receipts for kids sports, things like that. My wife and I are taxed pretty high because we earn a good wage, other then that there's not much more.
> 
> Should I just stick with quick tax or do you think there's any benefit to hiring someone? ...


It sounds simple enough that reviewing tax books from the library, questions posted here and reviewing the articles about changes in the taxes should be enough.

People I know who have taken returns this simple to someone appear to be doing most of the work (i.e. gathering the slips) and from what was described, the preparer was using the same or similar software to what is available.




Zeeshanbmerchant said:


> Homerhomer said:
> 
> 
> > If you understand what you are doing and only have few slips than there is no point of hiring someone, if you aren't sure what you are doing than peace of mind may be worth the fee.
> ...


I'm not so convinced ... H&R Block is advertising $59.99 for a basic return and my university room mates father was "trained" in about a week from what I recall.

If there is a concern - why not search out & use one of the free "second opinion" return reviews? I expect one will have to resist attempts to sign them up but it hopefully would high light anything obvious that was missed.

Note that I am thinking of review of the return as opposed to tax planning services.


If I were to shell out money - I'd look for an interest course on tax preparing before I'd pay for such a simple return. That's me though.

Cheers


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## carverman (Nov 8, 2010)

I've done my own tax return for years, mine is simple with only the basic personal exemptions (including disabilty tax credit) and charitable donations.
I make a check list of all my T4/T5s and file things like charitable donations, medical -dental receipts in zip loc bags, and of course since last year the Ontario Happy Homes
renovation tax credit receipts for seniors (I think you need to be over 65 for that) .
Based on the copies of my last year's return..I just plug in the new numbers and using my $2.00 (Dollar store)calculator do my own return...it's not rocket science,
BUT you do need to be organized, not to make mistakes...and the $59.99 + hst might as well be in my pocket rather than H&R's.


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## Eclectic12 (Oct 20, 2010)

carverman said:


> I've done my own tax return for years, mine is simple ... BUT you do need to be organized, not to make mistakes...and the $59.99 + hst might as well be in my pocket rather than H&R's.


That's what has puzzled me about the people with simple returns going year after year to have it done. 

When I've discussed it with them, they have to provide the receipts and had to be just as organised as if they were DIY. Then too, they typically aren't asking for info or getting any deductions that weren't explained in a tax book at the library or now that there's software, the help for the software.


Now if it's for someone working in the US or has complicated investments - that's a different kettle of fish.


Cheers


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## wendi1 (Oct 2, 2013)

I found that Turbo Tax was plenty pedantic enough for me...

The problem is that smart accountants are slammed at tax time, while the young, semi-trained ones are doing all the "T4" tax returns. If things start to get too complicated, I would start looking for a tax accountant in December, so you can talk to him/her before things get crazy.

The only problem I have with taxes now relates to ACB calculations, which TT is no help with at all.


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## Eclectic12 (Oct 20, 2010)

wendi1 said:


> ... The problem is that smart accountants are slammed at tax time, while the young, semi-trained ones are doing all the "T4" tax returns ...


For an accounting firm ... maybe ... ( it wouldn't surprise me if the firm knows they will have a rush of simple returns, they might hire temps and run them through a crash course).

In terms of the tax return places - as I say, my room mate's dad had never worked in any sort of financial capacity, was bored in retirement, answered an ad, passed the course and was the "expert" sitting across the table from those who walked in to get their return done.


Cheers


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## OurBigFatWallet (Jan 20, 2014)

When I was articling our firm charged $400 for a basic return. If you just have employment income and some RRSP contributions you're better off doing it yourself. An accountant comes in handy when tax planning is involved - that's not something you'll get at H&R Block


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## Zeeshanbmerchant (Jan 4, 2014)

OurBigFatWallet said:


> When I was articling our firm charged $400 for a basic return. If you just have employment income and some RRSP contributions you're better off doing it yourself. An accountant comes in handy when tax planning is involved - that's not something you'll get at H&R Block


Never ever go to the macdonalds of tax returns, and if you do, dont expect good things


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## saskstu (Oct 21, 2013)

Wow. Tried to enter just now and contest closed 224 entries lucky people


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## Just a Guy (Mar 27, 2012)

If you invest in real estate and own 3 or more, you can write off the accountant. There is probably some point where other investments would qualify you as well...I'd rather give my money to an accountant than the government personally, and it also gives me a couple hours of time back...not to mention I don't need to brush up on tax laws each year.

It's not complicated, but just something I'd prefer not to do personally.


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## Guban (Jul 5, 2011)

Just a Guy said:


> If you invest in real estate and own 3 or more, you can write off the accountant. There is probably some point where other investments would qualify you as well...I'd rather give my money to an accountant than the government personally, and it also gives me a couple hours of time back...not to mention I don't need to brush up on tax laws each year.
> 
> It's not complicated, but just something I'd prefer not to do personally.


You can always deduct the cost of hiring somebody to prepare the portion of a tax return that generates taxable, or potentially taxable, income. This applies if you have one rental property, or three. The same rule applies to other investments. You can deduct the cost of preparing the schedules pertaining to capital gains, business income and so forth. Strictly speaking, preparing the personal part of a tax return is never deductible.

That being said, CRA may not care if the high accountant fees are due to the investment or rental portion of a tax return, and the entire cost is deducted.


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## fraser (May 15, 2010)

HR Block charge most people more than 59.95.

They charge every form that they have to provide, even if there is only one number on the forum. I saw what my father paid for my parents returns. It was not far off what our accountant, a CA, charged us for our two returns. So I am not a fan. If yours is straightforward then I would use a program. If not, I would search out a professional who you can reach at any time and who you will deal with on an continual basis.


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## NorthKC (Apr 1, 2013)

Just a Guy said:


> If you invest in real estate and own 3 or more, you can write off the accountant. There is probably some point where other investments would qualify you as well...I'd rather give my money to an accountant than the government personally, and it also gives me a couple hours of time back...not to mention I don't need to brush up on tax laws each year.
> 
> It's not complicated, but just something I'd prefer not to do personally.


It's only the accounting fees directly related to the rental/self-employment income that is deductible. For example, if it costs $80 to do a basic return and another $125 to do the business/rental, only the $125 is deductible. Oh yes, and this goes on next year's return since you've paid for it in 2014. Be careful!


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## OurBigFatWallet (Jan 20, 2014)

Just a Guy said:


> If you invest in real estate and own 3 or more, you can write off the accountant. There is probably some point where other investments would qualify you as well...I'd rather give my money to an accountant than the government personally, and it also gives me a couple hours of time back...not to mention I don't need to brush up on tax laws each year.
> 
> It's not complicated, but just something I'd prefer not to do personally.


There are no minimum real estate/investment requirements to be able to deduct accountant fees on your T1


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## PrairieGal (Apr 2, 2011)

I have always done my own return using Turbo Tax, but this year I am trying Studio Tax. It's free, or by donation.


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## Ponderling (Mar 1, 2013)

Call me a ludditie, but I still poke through the paper returns.I will build my own spreadsheets to figure how to optimize things. 

Last year I had a non registered account taxable loss that I was able to use to file an amended return for a taxable gain I paid three years in the past.
It was a first for me to do that. It netted me $800. 

Losses are a part of life, you try to minimize them, but they happen. Recovering from them as best as possible is ideal. 

I cannot imaging turbo tax or other script based packages dealing with this situation properly, but I may underestimate how sophisticated they have become.


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## Guban (Jul 5, 2011)

We don't "amend" returns in Canada as Americans do, we "adjust" them. Also, to handle this capital loss, we use a request for loss carry back in the current year. See
http://www.cra-arc.gc.ca/E/pbg/tf/t1a/t1a-13e.pdf

You may be wrong about the programs. Not only will they do this for you, if you ask it to, the best programs will suggest that you do so if you have used the same program over the years as they remember what happened in the past for exactly this reason. They will also remember your previous investment slips and prompt you so that you don't forget one in the current year as easily. They will also do things like remember depreciated amounts so that you can continue to depreciate capital assets, and much more. Ok Ponderling, I'll call you a Luddite! You may wish to come into the modern era and try some of our conveniences.


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## OurBigFatWallet (Jan 20, 2014)

Guban said:


> We don't "amend" returns in Canada as Americans do, we "adjust" them. Also, to handle this capital loss, we use a request for loss carry back in the current year. See
> http://www.cra-arc.gc.ca/E/pbg/tf/t1a/t1a-13e.pdf
> 
> You may be wrong about the programs. Not only will they do this for you, if you ask it to, the best programs will suggest that you do so if you have used the same program over the years as they remember what happened in the past for exactly this reason. They will also remember your previous investment slips and prompt you so that you don't forget one in the current year as easily. They will also do things like remember depreciated amounts so that you can continue to depreciate capital assets, and much more. Ok Ponderling, I'll call you a Luddite! You may wish to come into the modern era and try some of our conveniences.


I agree. Most adjustments are actually pretty simple. I wrote about that on my site a few days ago....


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## Eclectic12 (Oct 20, 2010)

Just a Guy said:


> If you invest in real estate and own 3 or more, you can write off the accountant ...
> 
> It's not complicated, but just something I'd prefer not to do personally.


A lot depends on what one understands & how complicated the taxes are. 
I've known people who basically only had T4 income plus interest who paid $30 to get a return done, which IMO was a waste.


Cheers


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## Eclectic12 (Oct 20, 2010)

Ponderling said:


> Call me a ludditie, but I still poke through the paper returns.I will build my own spreadsheets to figure how to optimize things.


 ... not sure why you'd want to build your own when you can download them from:
http://www.peeltech.ca/mytax.shtml

... but to each their own.




Ponderling said:


> Last year I had a non registered account taxable loss that I was able to use ... I cannot imaging turbo tax or other script based packages dealing with this situation properly, but I may underestimate how sophisticated they have become.


No need to imagine ... the tax package I used reminded me in the year of the capital loss that I could carry it back three years (no capital gains to use it against in the previous three years, unlike your case). 

Then as I'd start each current tax year, the import of the previous tax return would kept reminding me I had unclaimed capital losses until I decided to use them.

Much easier than reviewing the NOA from the previous year to see what was available. Same thing when I was carrying RRSP contributions made but not yet deducted.


It won't automate telling you when is the "best" time to claim it but it certainly made sure I didn't forget about it.


Cheers


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