It’s that time of year again…….Income Tax season! Many of us dread this time. Wondering if we owe money or hoping to get a refund. Some of us are organized and have already filed our taxes….way to go! Then there are those of us who procrastinate until the last minute. Ugh!! In Canada, the filing deadline is April 30/16.
You don’t want to be late in submitting your tax forms because there is a chance it could end up costing you money. If you owe taxes and submit your tax file late, you will pay late filing penalties as well as interest on the amount owing. Even if you cannot pay your full balance owing on or before the deadline, you can avoid the late filing penalty by filing your tax return on time.
Whether you complete your own taxes or have a professional do it for you, the key is to be organized with all your slips…T4, T5, RRSP contributions, child care receipts etc. Of course being organized doesn’t start just a few weeks before you decide to file your taxes. You need to create a plan that will last the whole year to help lessen your tax burden for the next year. Here are a couple of tips that might help lessen the burden: max out your retirement contributions, have substantial charitable donations, track post secondary education expenses, or optimize your investments. MoneySense has a great article about ways to pay less tax. http://www.moneysense.ca/save/taxes/28-tax-tips-to-save-you-money/
Please remember that you must retain your supporting documents for six years. Even though you may not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep them in case the CRA selects your return for review.
If you have any questions or concerns the Canada Revenue Agency website has a lot of information that can help this year’s tax season and next. http://www.cra-arc.gc.ca/menu-eng.html
“The best measure of a man’s honesty isn’t his income tax return. It’s the zero adjust on his bathroom scale.” – Arthur C. Clarke
Photo source: mangumpubliclibrary.com, onetwelveksa.wordpress.com, simply-org.com, thestar.com, incometaxottawa.ca