The following is a list of questions that people new to Virtualtax often have and their answers:
Getting started with VirtualTax
- How does VirtualTax Work?
VirtualTax works like an interview. We ask you easy questions about your life that affect your tax situation (i.e Do you have kids? Are you married? E.t.c) With the answers to these questions we fill the rights forms for you in the background. Your answers guide us on what to ask you next and they help us in finding the right deductions and credits for you. If you are unsure on how to answer a question, our support team will guide you.
Our careful guidance of your tax preparation ensures that we are able to help you keep every hard-earned dollar. In addition, we will find the right credits that you are eligible for to help you earn the maximum tax refund you can.
- What do I need to get started?
You do not really anything to get started, just your email address.
- How do I know which product/package is good for me?
You can visit our products page to choose the right products for you. Each of our products is described in details and recommended for particular individuals. In case you are still not sure of which product is ideal for you, you can seek a recommendation from our staff.
- How does VirtualTax know which questions to ask?
Virtual tax starts with the most basic questions. After the first few questions, it can determine the type of questions to ask based on the first few answers you provide. The answers provided are used to fill the relevant forms in the background.
- How much do VirtualTax Products cost?
You can visit our products page to determine the price of the product that is ideal for you. Our various products are priced differently.
Doing Your Taxes
- What If I have Questions along the way?
If you have questions along the way, you can seek help from our support team. It is available 24/7.
- What If I make a mistake?
Our system rarely allows you to make a mistake. But, in case you do, do not worry. After completing the filling of forms, VirtualTax shows you a preview of the forms that have been filled and kindly asks you to scrutinize them before they can be NETFILEd to CRA.
- Do I need a credit card to pay for VirtualTax?
You do not need to have a credit card to pay for VirtualTax. There are several options available via which you can pay for the products you are interested in purchasing. Please visit our products page to determine the various options that are available for you.
After You File?
- How Quickly can I get my Refund?
With VirtualTax you can receive your refund faster than you think, either via CRA’s direct deposit service.
- What If I do not have a bank account?
No problem. You can choose several other options via which you may want to receive your refund. Options available include, but are not limited to: Mailing the Cheque to you.
How to send my tax return to the CRA?
- After preparing your tax return, save the file in a location of choice.
- Click NETFILE.Click on the "I agree with the terms and conditions"button to move to the next page. Then click "Send to the CRA".You will get a response of rejection or approval in seconds.
- Click Print.Print the condensed version(For mailing to CRA).Mail the T1 Condensed Version to the CRA.
What of Third-party Filing?
Therefore, using VirtualTax cannot be considered as third-party filing.
How long will it take me to prepare my tax returns?
However, you do not need to finish your filing in one single VirtualTax session, You can save the information you entered and resume later when you have obtained some missing tax information or when you have the time.
Can I prepare any type of returns with VirtualTax?
General Tax Questions
Why Must I enter income information for an ex-spouse?
What if I do not know the amount of the ex-spouse’s income for the year?
What is the tax filing deadline?
April 30th is the deadline for most Canadian taxpayers. However, for the self employed people, the date is different. If you or your spouse are self employed, you have till June 15th to file your returns without attracting a penalty.
What if I am unable to file before the deadline?
If you expect a tax refund, there are no charges applicable. However, it is always advised that you claim your refund and/or apply for your benefits before the tax season is over.
What if I need to correct my tax returns after it has been filed?
However, if you need to correct your tax returns after you have filed them to the CRA, you have to send a completed T1 adjustment request form to the CRA requesting an adjustment. Alternatively, you can send a signed letter to your tax center requesting an adjustment. Once you receive your notice of assessment, you can go ahead and make any changes in the CRA ‘My Account’ service available online.
Can I File my tax returns electronically?
Should I file my returns electronically?
When filing my returns electronically, how do I send my supporting documents?
I have a balance due on my tax returns. How can I make the payment when I file using NETFILE?
How do I file tax returns if I have income from Canada and the USA?
- Generally, if you are a single individual without real estate in Canada and goes to work in the USA for more than half a year in a calendar year, you will be considered as a U.S. resident when you arrive in the USA. You can apply for a non-resident to CRA. Enter the income on your Canadian tax return which you earned in Canada before leaving. You don’t need to claim if there is no income in Canada. Remember, don’t enter U.S. income in the Canadian tax return.
- If you are married or living common-law, work in the USA and other family members still stay in Canada, your permanent residence and economic interests are still in Canada.
- No matter how long you work in USA, your Canadian resident status isn’t changed.
- U.S. income should be claimed first in the USA and then global income should be claimed on the Canadian tax return, then you can claim foreign tax credit to deduct the tax which you have paid to USA.
For more information:
Contact CRA (Canada Revenue Agency), or call 1-800-267-6999
How do you report foreign property?
- Canadian resident individuals, corporations, and trusts, as well as partnerships, who held certain property outside Canada with a total cost amount of more than $100,000 at any time in the tax year, have to file Form T1135, Foreign Income Verification Statement.
- Non-resident discretionary trusts, as defined under section 94 of the Act, may also have to file this statement.
- As an individual (other than a trust) you do not have to file this statement for the year in which you first become a resident of Canada.
- You do not have to report information about property held for personal use. This includes vacation property used by you primarily as a personal residence, as well as listed personal property such as works of art, jewelry, rare folios, rare manuscripts, rare books, stamps, and coins.
- See the latest version of Interpretation Bulletin IT-332, Personal-Use Property, for more details about personal property. You also do not have to report property used or held by you exclusively in an active business.
You do not have to file this statement for the following entities:
- Mutual fund corporations;
- Non-resident-owned investment corporations;
- Corporations exempt from tax under Part I of the Act;
- A registered investment under section 204.4 of the Act;
- Mutual fund trusts;
- Trusts described in paragraphs (a) to (e.1) of the definition of trust in subsection 108 (1) of the Act;
- Trusts exempt from tax under Part I of the Act;
- A registered investment under section 204.4 of the Act;
- A trust in which all persons beneficially interested are either corporations or trusts listed above;
- Partnerships with all the members of which are corporations or trusts referred to above;
- Partnerships where the share of the partnership’s income or loss for non-resident members is 90% or more of the income or loss of the partnership;
Persons (other than corporations or trusts) exempt from tax under Part I of the Act.
What property do you have to report?
- Funds in foreign bank accounts;
- Shares of Canadian corporations on deposit with a foreign broker;
- Shares of non-resident corporations held by the resident filer or on deposit with a Canadian or foreign broker;
- Land and buildings located outside Canada, such as a foreign rental property;
- Precious metals, gold certificates, and futures held outside Canada;
- Interests in mutual funds that are organized in a foreign jurisdiction;
- Debts owed by non-resident persons, such as government or corporate bonds, debentures, mortgages, and notes receivable;
- An interest in or a right to any specified foreign property;
- Property that is convertible, or that can be exchanged for a right to acquire specified foreign property;
- An interest in a partnership where the share of income or loss of the partnership for non-resident members is 90% or more and the partnership holds specified foreign property;
- An interest in a non-resident trust or a non-resident trust deemed to be resident by section 94 of the Act (discretionary trust);
- Patents, copyrights or trademarks held outside Canada; and
- An interest in, or a right with respect to, an entity that is non-resident.
Specified foreign property does not include:
- Property used or held exclusively in the course of carrying on an active business;
- Personal-use property (i.e., property used primarily for personal use and enjoyment, such as a vacation property used primarily as a personal residence);
- An interest in a U.S. Individual Retirement Account (IRA);
- Shares of the capital stock, or indebtedness, of a non-resident corporation that is a foreign affiliate;
- An interest in, or indebtedness, of a non-resident trust that is a foreign affiliate;
- An interest in a non-resident trust that neither you nor a person related to you had to pay for in any way;
- An interest in a non-resident trust principally providing superannuation, pension, retirement or employee benefits primarily to non-resident beneficiaries, that does not pay income tax in the taxing jurisdiction where it is resident; or
- An interest in, or a right to acquire any of the above-noted excluded foreign property.
Where do you send the form T1135?
Filing this statement
Ottawa Technology Centre
Data Assessment and Evaluations Program
Foreign Reporting Unit
875 Heron Road
Ottawa ON K1A 1A2