hi,
i was wondering if there is any reliable resource online (preferably free) about how to file taxes yourself if you're a massage therapist in ontario. i have family member who worked part-time employed by someone else, and then later changed to massage therapist to a clinic later in the year. it's all new to us, so any resource would be helpful. thank you.
It's been a while since I did my own myself. But with a quick google search, I found a video that goes over some of the basics - at least a starting point.
http://madanca.com/blog/prepare-busi...d-individuals/
Here is the full set of returns for my search: https://www.google.com/search?biw=12....0._-kYEhzXTYw
When the person was employed by someone else, was she an employee or was she considered a contractor (what was the contract between the family member and first place of employment)? I ask because if hair salons can contract stylists to chairs (in fact like renters), then it is possible she could have been contracted to provide massage therapy as a contractor to that first employer. So she'd be considered self-employed in the first case. Health clinics often have multiple healthcare professionals under one roof but they may not all be employees-some are and some are contracted professionals who pay the clinic owner for use of dedicated space from their client billings. For example, my mother went to a clinic with a physiotherapist-that professional did not bill to insurance and would only take direct payment. Meanwhile the clinic's website indicated billing to insurance so that meant phyisotherapist must be a contractor to the clinic. I had to explain this many times to Mom who wanted physiotherapist to bill her insurance but I believe the physiotherapist was saving her time and money by direct billing. Anyway, that is one example I have. Mom's insurance doesn't do paper claim filing as far as I know--her dentist direct-bills to insurance for covered amount and Mom is told what amount she has to pay after her appointment.
Also when someone is self-employed, they have to look into GST numbers and whether they merit registration to obtain one (there's an income level that triggers need for GST number). I attended a small business GST seminar last Sept. and if self-employed persons make more than a certain sum per quarter for THREE consecutive quarters, they have a tax amount owing. As a sole proprieter, one's personal assets are liable in case of tax situations but it one registers under a corporation, then there's limited liability, meaning only business assets can be liquidated to cover amounts owing, not personal property like car, house or personal banking account. BTW, there should be a separate bank account for business income *I know that many bricks and mortar banks charge businesses for cash & cheque deposits per transaction nowadays*. Might explain why many places ask for electronic payment instead.
Self-employed persons can elect to pay into EI and once making that declaration, are forewith having to contribute EI premiums on any income earned.
https://www.canada.ca/en/revenue-age...m-account.html
I attended the CRA seminar on GST numbers and taxation matters via the Hamilton Business Centre. Your family member might want to see what's available in her area to access the same kind of seminar. https://www.hamilton.ca/starting-sma...usiness-centre
https://www.canada.ca/en/services/ta...al-income.html
If your family member is a registered massage therapist, then any annual dues to maintain professional status are deductions from total income. There is some strict taxation stuff concerning claiming capital cost allowance on any part of a personal dwelling containing a business, as the CCA claim could impact your residence's value/taxation (one's primary home is free of capital gains taxation upon sale but if you have a CCA claim on a house, that causes a tax issue). Usually it's best not to claim CCA in such a case. Our seminar instructor gave an example of a prof. sales agent using different parts of a home to entertain clients though actual designated office was upstairs & used for paperwork, not sales visits. CRA turned down her claim for CCA for the use of personal spaces and coffee machine in kitchen during client visits.
Mileage claims if family member is doing offsite visits require logs and travel to a client would be eligible for claims but not return trips to office or place of business. If stops along way to client including picking up purchase of supplies for business, then those stops would also go into the mileage log.
Filing is done based on what business format one is operating under: sole proprietorship, partnership or corporation, not by occupation.Quote:
Originally Posted by Aquaria
The type of business can mean there are certain kinds of expenses or claims. Any regulated profession in Ontario usually requires members to pay annual due and possibly even commit to some kind of annual or other regular education updating out of pocket. Healthcare professionals also tend to have to update their CPR qualifications (tuition claims as non-refundable tax credits begin when you have $100 or more at each institution or training centre) every two or three years. Out of pocket immunization shots would be considered medical expense claims on one's personal tax return.
Also, Ontario municipalities tend to be sticky about certain kinds of businesses required a local business permit to legally operate within their town or city borders (not to mention if business operation is in the right zoning district for such operations). Worth a check to see if running one's own clinic might require a permit, which would be a business expense due to necessity of needing one to conduct business earning income. Public health unit likely has to do annual check of clinic for safety and cleanliness reasons.
@ ciel and @ brunt -- thank you for your help ^^