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Spring-Clean Your Finances
The promise of spring brings with it many things. New beginnings, new greenery and flowers in bloom, and the arrival of the deadline to file your income taxes on April 30th.
OK… admittedly, the last one is not quite the same as the first two but, with these simple spring-cleaning steps, you’ll be more than ready to file with ease.
Any Big Changes?
Now is the time to look at any major life changes you’ve experienced in the past year and see if and how they could affect your return. Did you get married, change your name or address, or get a new job? These are all important details that can impact your return. Gather any related documentation to any of these changes regardless of whether you are self-filing or getting professional help.
What’s Missing?
Have a look at your previous year’s return and see if you missed any deductions or credits you can make use of this year. You’d be surprised how much money gets left on the table in unclaimed deductions. Things like the Canadian caregiver credit, union dues, tuition credits, medical expenses, even moving expenses are all things you can claim. Just be sure to keep all your receipts!
Speaking of Receipts…
No more shoebox full of crumpled up receipts for you. Make sure all your relevant documentation is organized and kept in a safe place. It’s best to have digital and hard copies if possible and, if you’re unsure what you’ll need, reach out to a tax professional in advance to ask. If you are missing any, check any online or account resources required to get them prior to filing. These can include your CRA account, employer portals, or other organizations and resources that may apply.
Have Things Clearly Categorized
This one is more for the business owners among you but can also be helpful for those filing personal returns. Add up and summarize your relevant receipts and paperwork in categories such as expenses, cost of sales, taxes (GST, PST, or HST as applicable), rental income, employee expenses, etc. Spreadsheets are ideal, but pen and paper work too. A good habit to get into is to categorize and store receipts as they come in over the year and to keep them together in a secure place so that you don’t need to go through them all come the next spring.
Knowledge is Power
Whether you’ve been filing taxes for a long time or if it’s your first year, there is always something new to learn about the process. Look at your income, deductions, and how it all comes together to get the total of your return. It makes self-filing much easier if you understand the process and, if you’re hiring a professional, it better equips you for when they review your return with you. In addition, know your rights. Reference the Taxpayer Bill of Rights if you have any questions related to your interactions with the CRA.
What’s That They Say About Death and Taxes?
Though you may not like filing or paying taxes, it is your legal obligation. You also have an obligation to file an accurate return. As “creative” as your math may be, no one (not even the best accountant) can take responsibility for your return or for what you may owe or receive back. Be honest, maximize your deductions and credits, and have the right documentation to be in the best possible position.
We Can Help
Tax professionals, like the ones at Mowbrey Gil, can help answer your questions and prepare your return. Working with our team ensures you have everything you need to take the stress out of tax time.
We specialize in personal and business taxes, and we’d love to hear from you — Call us today at 780.461.3800.
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