Tax season: let’s get preparedSubmitted by Agrawal Associates on March 2nd, 2018
Feb. 27, 2018
It may roll around each year like clockwork, but tax season is often one of the most groaned about times of year. Everyone is trying to find time in their daily lives to gather all of the paperwork together for a quick and efficient return.
To make your life easier, we spoke with David MacNicol, CPA and CA, to get some tips on making the tax season cruise along smoothly.
1. Don’t start your return until you have all the slips.
By gathering all of the paperwork together in advance, it sets you up for a more efficient tax return and reduces the possibility of needing to do a personal tax return amendment after the return is filed. MacNicol also reminds us of the cost of submitting forgotten T slips after filing: “The Canada Revenue Agency assesses penalties for T slips issued to a taxpayer that are not reported on the personal tax return.”
2. Follow a checklist to ensure you have all the documents.
Whether you’re doing your taxes yourself, or with a tax accountant, MacNicol encourages taxpayers to review a tax planning checklist to ensure you have everything you need to complete the return before you begin.
3. Don’t underestimate opportunities to save money.
A significant component of tax planning is saving your receipts throughout the year. Did you move to a new home that is at least 40 kilometres closer to a new job or school location? Some medical and dental expenses that are not reimbursed by an insurance plan can also be claimed through your income tax return, along with interest on money borrowed to earn investment income.
Above all, don’t forget that tax planning isn’t a once-a-year situation. It’s a continual process of evaluating your tax position and considering the tax implications of every major financial decision you make. If you need more information on tax planning in general, let us know!