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FAQ

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?

The revenue authorities consider third party filing as a situation in which an individual prepares their tax returns and seeks the services of another to do the filing for them.With VirtualTax, you file the returns on your own. The software enables you to prepare and file the taxes electronically. Alternatively, you can print out your returns and mail them.

Therefore, using VirtualTax cannot be considered as third-party filing.

How long will it take me to prepare my tax returns?

It all depends on the amount of tax information you have to file. Some individuals can take a few minutes while for some, it can take a an hour or two.

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?

VirtualTax is designed to prepare just about any tax return. However, if you need to file complex file returns, it is recommended that you seek guidance from a tax expert. Our support staff is always online to offer you assistance through your tax returns filing.

General Tax Questions

Why Must I enter income information for an ex-spouse?

The amount of income entered for an ex-spouse is required by the CRA, and it is used to calculate the spousal amount or common-law partner amount on line 303 of your return (if applicable). If no amount is entered the return cannot be electronically filed. You are left with the option of printing and mailing the returns to the CRA.

What if I do not know the amount of the ex-spouse’s income for the year?

If you do not know the amount of income and wish to file the return electronically, you will have to provide an estimate that reflects what you do know. You are advised against entering an amount that is too low, otherwise you may be claiming amounts that you are not entitled to. This could lead to penalties, interest charges, and/or delays.

What is the tax filing deadline?

You should file your tax returns on or before 30th of April each year. Adhering to this deadline means that you avoid any penalties that may arise or interest charges on amounts outstanding.

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 are unable to follow your returns before the deadline, the CRA will charge penalties and interest on the outstanding amounts starting on the day after the return is due. Please visit the CRA website for more details on the outstanding returns.

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?

It is important that you take your time in filling the tax returns accurately to avoid any penalties that may arise out of filing inaccurate tax returns.

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?

Yes. CRA invites most taxpayers to use the NETFILE service in the submission of their returns to the CRA. The feature allows you to electronically file your returns directly to the CRA.

Should I file my returns electronically?

Filing your returns electronically via the NETFILE service offers you several advantages: one; shorter processing time. Two; You are able to fix errors immediately as the CRA responds immediately. Three; No hassling with slips and receipts. Four; There is proof of receipt from the CRA. Five; you do not need to mail your returns.

When filing my returns electronically, how do I send my supporting documents?

When filing your returns electronically, you do not need to send your supporting documents. However, you are advised to keep them safe in case the CRA contacts you and asks to have a look at any of the documents.

I have a balance due on my tax returns. How can I make the payment when I file using NETFILE?

There are several ways that you can use to pay off your outstanding balance when using NETFILE. These include: Online banking option, In person, Via mail, Pre-authorized debit, and at your financial institution.

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?

Do you have to file this statement?

  • 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:

Corporations

  • 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;

Trusts

  • 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

  • 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?

You only have to report property that is specified foreign property. Specified foreign property includes:

  • 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?

If the reporting taxpayer is a partnership, references to year (or tax year) should be read as fiscal period and references to tax payer should be read as partnership.

Filing this statement

File this statement with your tax return or, if a partnership, with your partnership information return. If you do not have to file a tax return or a partnership information return, or you use E-file, send this statement separately to:

Ottawa Technology Centre
Data Assessment and Evaluations Program
Foreign Reporting Unit
875 Heron Road
Ottawa ON K1A 1A2

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