New Year’s Resolution: Taxes done the right way!
Happy new year! The new year is in full swing and and now is the time to start fresh. One issue that troubles us all is getting our finances in order and filing our taxes! Here are a few tips you can utilize right away to kick-start a year free of stress, and possible savings:
- Start filing government returns today!
You may be behind in filing for HST or source deductions and may figure there is no point to start filing today; however, making payments and filing for the current period may help avoid penalties. You may still owe interest but at least you’ll owe less. Additionally, when approaching the government for negotiations, they will see your effort in keeping up-to-date with current filings (even though you may be behind in prior years) as a sign of good faith.
- Keep your paper-work organized
Having an organized filing system in your home may not bring in big refund cheques, but it sure will reward you when tax season kicks in. Be sure to collect all receipts, including medical and donation receipts to ensure your taxes are as low as they can be.
- Children attending post secondary institutes?
Don’t forget to request the T2202 forms from the educational institute your child attends to further your tax deductions. These forms will indicate the tuition amounts paid allowing for the coinciding textbook receipts to be included when filing taxes.
- Gather all T forms.
This includes T4, T4A, T3, and T5. The Canada Revenue Agency has stringent rules when it comes to matching T forms with their creators. If any are omitted, consequences may follow as deemed by the CRA.
Deadline for filing taxes is April 30th for individuals and June 15th if you are a business owner, but to ensure filing goes smoothly, try and finish it ahead of time.
We want you to have a great year in your business. Part of that is by managing your finances, accounting, and taxes better. Stay tuned for next week’s upcoming post on new legislative changes that the new year brings! This is not a complete list and there are many other tips to help you. If you have any further questions, please contact your accountant or feel free to contact us. We can be reached at firstname.lastname@example.org or give us a call at 416-495-1098.