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Only Pay GST On Self-Employed Income?
Hello!
I am filing our tax return for 2014 for the first time using TurboTax from our accountant previously doing it for us.
This is my situation: I run a small data consulting company to offer IT support as 'contract work' for other companies. The only company I dealt with in 2014 was a company in BC (I live in QC) and thus have JUST been charging them the GST (5%) on top of the invoice amount, not charging any QST. My company is registered provincially and federally with a GST + QST tax number. I have not made any payments throughout the year of my GST collected to the government, so I know I would have to pay it once filing.
I entered all the income made in TurboTax (before GST) and it seems to have calculated it with GST. What I am wondering though, is does TurboTax know to not charge QST on this amount since I did not enter anywhere that all my invoices were out of province and I never charged QST to my client?
Something I did notice , is that my 'estimated tax return' on the right side did get significantly lower once I entered that income since I did not pay any income tax or GST on it yet.
I just want to make sure I'm not going to end up paying an unnecessary tax (QST) since my invoices were all to out-of-province clients.
Thanks!
Mike
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Troubleshooting
What version are you using? I did a trial in Home & Business for self-employed income. It does produce a summary at the end of the section on T2125, that shows that there are no taxes automatically calculated. I am not seeing, apparently, what you are seeing.
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Troubleshooting
What is it then TurboTax calculates, is it just the income tax on that sales amount and not the GST that I need to pay somehow?
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Troubleshooting
http://www.cra-arc.gc.ca/bsnsss/menu-eng.html
On the left, in the menu , you will see My Business Account and GST Netfile, both of which will be useful to you. You will also find information on making a payment. You should have received a payment slip and access code by now, that would allow you to make a payment at the bank, after you file online.
From what I can see in the return I did, Turbotax only calculates income, less expenses and produces taxable income. Then it begins the non-refundable credits
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I think that the T2125 Business Income section asks for the GST/PST amounts.