FAQ

Are you really cheaper than other providers like H&R Block?

Although many tax preparers advertise returns starting from “x amount”, it is unlikely that you will ever pay just the base price. This is because tax preparation is different for every client, and as such, most (if not all) tax preparers will charge a variable price based on a number of factors (e.g. billable hours, complexity of return, etc). For large-scale tax preparers, like H&R Block, there is seldom a situation where you will pay the minimum price they advertise. Rather than chasing after your wallet, we hope to build a relationship with the Calgary community we were born and raised in.

A big reason we founded LM Tax comes from the fact that we see Calgarians being overcharged for tax preparation on a daily basis. As avid tax hobbyists and hardworking individuals, we prioritize saving you money while giving you the advice you need. Although we may not be able to file every return at our base prices, we do our absolute best to provide the best rate for every single client and that’s what makes us different.

Furthermore, some large-scale tax providers, such as H&R Block, will often charge a filing fee. This is the amount it costs them to pay for any licensing, admin, or other filing costs associated with filing your return. This is another reason why you usually end up paying more than the advertised base price. Although we pay these costs too, we utilize tax software that minimizes these filing fees so that we can transfer the savings to you. (Please note: we do not charge an additional “filing fee”, as it is already built into our cost schedule). If you are filing for multiple years, however, extra charges may incur because we are required to pay a licensing fee for each year we file for you.

What is the best way to communicate with you?

We are always in the process of developing our communication processes. Generally speaking, most returns can be finished with just a couple of emails or texts. The form of communication you use is completely up to you, and the process will be similar whether you prefer email, text, or phone call.

If you have a small question you would like answered, or if you’re just curious about something, feel free to utilize our Online Contact Form.

Do you charge for quotes/advice?

No! Although we do hope you choose to file with us, we are able to provide quotes and T1 tax advice at no charge. We are here to educate Canadians on the tax-filing process, and we want to ensure each client feels comfortable completing their return whether they utilize our services or not. Canadians have been paying far too much for far too long, and we’re here to help change that.

I am looking for a Chartered Professional Accountant (CPA). How can you guys help?

Although we have our extensive share of experience in personal tax filing, we are NOT CPA-certified. If you are looking for professional tax assistance, we can help point you in the direction of someone that can without resorting to the big guys.

I don’t know what documentation I need to file my tax return. What should I do?

If you are unsure of what tax documentation you need to provide in order for us to complete your return, you can refer to our Facts Sheet. You can also ask us directly and we’ll let you know exactly what you need to provide.

I didn’t earn any income last year. Do I still need to file a tax return?

Regardless of whether or not you earned income throughout the year, it is recommended that you file a Canadian income tax return. Why? You may be entitled to certain refundable credits and benefits that you will not receive unless you file a tax return. For example, you can only receive the Climate Action Incentive (CAI) benefit of $444 if you file a tax return.

I am in the process of being audited. Can you guys help me?

Yes, we can help! The Canada Revenue Agency has the ability to audit anyone. If CRA requests to review your return, we will support you in sending them the information they need. In rare circumstances, or when the audit requires a significant amount of attention, additional fees may be incurred.

What is a notice of assessment (NOA) and where can I find it?

The NOA summarizes your tax return from the prior year and provides carry forward information for the current year’s tax return. If you have never filed Canadian taxes before, you will not have an NOA. You can get it from your CRA online account, or you can call CRA at 1-800-959-8282.

My friend got $XX.XX for a refund, but I only received $XX.XX. Why is that?

Your refund (or balance owing) to CRA is determined by a series of complex calculations. The maximum amount your refund can be is the amount of income tax that was already deducted from your employment income plus any refundable credits you may be entitled to. Your return can be influenced by a number of factors including, but not limited to; payroll deductions from employment income, medical and donation expenses, RRSP contributions, specific status entitlements, and much much more. If you would like additional information in regards to how your refund (owing) was calculated, don’t hesitate to reach out to us and we can explain in more detail.

What are tuition and education credits? How do they work?

As an incentive to pursue post-secondary education, the federal and provincial government allows the use of tuition credits. Tuition credits are non-refundable, meaning that they can only be utilized to the extent that they reduce the amounts you owe to CRA to begin with. If you had a very little or no income throughout the year, your tuition credits will not be used. Instead, you can either transfer them to a parent or spouse (up to a maximum of $5000) or carry them forward indefinitely.

How will the elimination of Alberta education and tuition tax credits affect my taxes?

Effective January 1, 2020, Alberta students will no longer be able to claim provincial tuition and education credits. However, you will still be able to claim 2019 tuition credits and carry forward any unused amounts indefinitely.  Federal tuition and education amounts will still apply until further notice. Read more about the provincial change here.

Can’t find the right answers to your questions? Let us know through our Online Contact Form.