Well the personal tax return season rush is basically over but I will continue preparing tax returns for 2012, and prior years, for the balance of the year. While reflecting on the achievements of our 2012 tax season I’m reminded of the clients surprised by information I shared with them. Here are 5 significant 2013 Canadian client surprises this season:
1. RESP Funds Received. The surprise was that the money was taxable. The good news is that the money is taxed to the student, who usually doesn’t have a lot of income that year and tax payable is minimal, if any. A T4A slip is received from the investment source and the amount is recorded in Box 42.