Here are the 6 tax-related questions Vancouverites are always asking experts

We get it, doing your taxes can seem like a bust. With the May 2 deadline on the very near horizon, many of us are stressed and under the impression that we either have to pay accountants to do our taxes for us, or we need to be an expert ourselves in order to file our returns properly. And that’s just simply not true.

Part of what can make tax season seem so daunting is all of the questions we have surrounding our returns. The thought of making a simple mistake can spiral into visions of unintentionally committing an irreparable crime. But it doesn’t need to be so stressful — or that time-consuming and difficult either.

That’s why Caroline Corbeil, an expert at Wealthsimple Tax (a totally-free, do-it-yourself, online tax software that people actually enjoy using) is responding to the most-asked questions she’s received this year — helping us prepare to tackle those returns with some answers.

“Do I need to claim my rental property on my tax return?”

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Travel started to make a comeback in 2021, which means BC rental property owners might have had some extra income last year. “The answer to this one is yes, when you have a rental property, you must report the income you earn from the property on your tax return,” says Corbeil.

“How do I claim my tuition expenses?”

Wealthsimple Tax answers this one for you through its handy auto-fill feature. Many of the necessary documents to complete your taxes can be found in your Canada Revenue Agency (CRA) account online, including your notice of assessment, Registered Retirement Savings Plan (RRSP) deduction limit for that year — and, that’s right, any unused tuition amounts.

“Tuition expenses are used to calculate the tuition tax credit. If you earned little or no income, your tuition credit can be transferred to a spouse, parent, or grandparent, or will be carried over to next year,” says Corbeil. “With auto-fill, we’ll import tax documents directly from CRA accounts right into the program.”

“I retired recently. Will I owe money instead of getting a refund?”

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Corbeil explains that this is a common question and scenario amongst retired taxpayers, explaining that typically retirement comes with more income, likely putting you into a higher tax bracket. “When you retire, you generally have more sources of income, for example, CPP, old age security benefits, pension plan income, etc.,” says Corbeil. “All of which puts you in a higher tax bracket, meaning you might end up owing.”

“I bought or sold crypto this year. Do I have to claim that on my taxes?”

With crypto having skyrocketed in popularity this past year, there’s a good chance you bought or sold some — which is great, but that means it needs to be reported on your tax return.

New to Wealthsimple Tax this year is the option to automatically import all your crypto tax information from more than 300 popular exchanges and wallets for free. Wealthsimple Tax simply calculates it all for you and adds the information right to your return. And with more than two-thirds of Canadian retail traders not understanding the tax implications of trading stocks and crypto, it’s helpful to utilize the services of a service such as Wealthsimple Tax.

“I worked from home — do I get a tax break?”

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Simply put, Corbeil says, “Yeah, probably!”

Basically, there are two different ways to claim work from home expenses on your return. The first is the new temporary flat rate method. “If you worked at home for at least 50% of your time, for a period of at least four consecutive weeks, the CRA will allow you to claim a deduction of $2 per day, up to a maximum deduction of $400,” says Corbeil. “You don’t need to provide a T2200S from your employer, or receipts for any of your expenses.

The second route is the detailed method. “This one’s more involved but will allow you to claim eligible expenses over and above the $400 cap. First, you’ll need a form from your employer called a T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19,” says Corbeil.  “Then, you’ll need receipts and supporting documents. Before filing, you’ll want to read up on the CRA’s comprehensive list of allowable expenses. Examples of things that can be claimed are rent, cell phone, and internet service plans.”

“Since cannabis is legal, can I claim it as a medical expense on my tax return?”

To answer this one simply, no — just because one may have used cannabis last year doesn’t mean they can claim it on their taxes. “While cannabis is legal, to claim it as a medical expense, a few criteria must be met as set out here by the CRA,” says Corbeil. “You must have a medical document as defined in the Cannabis Regulations, be registered as a client or holder of a licence for sale, and make your cannabis purchases from that licence holder.”

Still have questions you want to be answered? When filing with Wealthsimple Tax, you’ll have access to a support team of experts, available to answer last-minute questions by phone or email. Most Wealthsimple Tax users take under an hour to file their returns, and the service guarantees your return will be done right, covering any penalties or interest paid if there is any calculation error.

To learn more about Wealthsimple Tax or start filing your return, visit wealthsimple.com or download the app here.