The Milk Producer - March 2011 - (Page 24)

FARMFINANCE By Monty Smith Getting a head start N Preparing your income tax forms need not be a daunting task if you plan early and keep organized ow is the time to get your 2010 personal tax information organized before spring field work starts. Generally, your 2010 income tax returns are due on or before April 30. If you’re self-employed, the deadline is June 15. However, any taxes you owe must be paid by April 30 or interest will accrue. You still need to file a tax return, even if you are not taxable, to receive refundable tax credits and be eligible for certain benefits, including: • child tax credit; • harmonized sales tax (HST); • Ontario sales tax transition; • Ontario senior’s property tax grants. program, you must make EI premium contributions for your entire career. You need to carefully consider the costs and benefits before entering into such an agreement. For more details, visit Service Canada’s website at www.servicecanada.gc.ca. Refundable tax credits If you have children enrolled in extracurricular activities, you’ll be glad to know the Ontario government has introduced the children’s activity tax credit (CATC) as part of its refundable tax credit changes. The CATC covers a broader range of activities than the current federal children’s fitness credit. Parents can claim up to $500 per child under 16 for eligible activities such as dance, arts, music, language and tutoring, as well as sports. Children with disabilities qualify for an enhanced credit. New for 2010 If your farm business is a HSTregistered partnership and you pay deductible expenses at the partner level, your calculation for goods and services tax (GST) and HST rebates for 2010 is more complex than prior years. You can claim a GST and HST rebate on employee and partner expenses using form GST 370. Ontario’s transition to the HST, effective July 1, 2010, means you’ll need to split eligible expenses into two portions—one for the five per cent GST and the other for the 13 per cent HST. Self-employment As a self-employed farmer, you can 24 | March 2011 | MilkPRODUCER You still need to file a tax return, even if you are not taxable, to receive refundable tax credits and be eligible for certain benefits. choose to pay employment insurance (EI) premiums on self-employed net income or non-eligible employment income through an agreement with the Canada Employment Insurance Commission. You would then qualify for certain EI benefits, such as maternity or compassionate leave, following a 12-month grace period. If you collect benefits under this Get organized Preparing your tax return need not be a daunting task. You can simplify the process by organizing your receipts and financial records throughout the year. For more information on eligible tax credits, visit www.rev.gov.on.ca. Monty Smith is a chartered accountant and partner with BDO, serving clients in the Stratford and Woodstock areas. He can be reached at msmith@bdo.ca or visit www.bdo.ca. http://www.servicecanada.gc.ca http://www.rev.gov.on.ca http://www.bdo.ca

Table of Contents for the Digital Edition of The Milk Producer - March 2011

The Milk Producer - March 2011
Table of Contents
Editor's Notes
DFO Chair's Message
Dairy Update
DFC Promotion
Farm Finance
Issues Update
Cover Story
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

The Milk Producer - March 2011