When the calendar turns to February, you know tax season won’t be far behind.
Regardless of your income, learning how to prepare for tax season is key to ensuring you’re getting the most from your return.
Get organized: Your tax filing deadline may still be a way off, but there’s no time like now to start collecting everything you’ll need, starting with your income statements, such as T4s, self-employed income and investment income.
Sort your receipts: Particularly applicable for those who own their own business, with any luck, you’ve been sorting receipts throughout the year. But if busy schedules – or procrastination – has got the best of your best-laid plans, you still have time to get prepared! Try to keep all receipts in one place, ideally separated into different types of expenses, such as office equipment, utilities, meals and transportation. As an added bonus of your early organization, you’ll have lots of time to chase down missing receipts!
Decide how you’ll file: So, do you tackle your taxes on your own, or hire a tax professional? For those with a straightforward tax situation without a lot of deductions, today’s software can make it pretty simple. Employers will have already factored your taxes into your paycheques, so you’re unlikely to have huge surprises. But for a more complicated return, a tax professional can help make sense of those deductions.
Know the rules for claiming dependents: Claiming children and other dependents can be tricky, especially if you welcomed your first child in 2019 – thinking about claiming your child on your taxes is likely the last thing on your mind! This might be a good opportunity to consult a tax professional to ensure you’re claiming dependents properly, and hopefully get a little financial relief to make the cost of kids a little more manageable.
Don’t forget your deadlines: Your deadline to file as a Canadian taxpayer is April 30, or June 15 if you or your spouse is self-employed. Simple enough, right? It’s surprisingly easy to forget to file your taxes, but that can bring significant consequences, especially if you owe money on your return. Make it impossible for you to forget your tax filing deadline by:
- Marking it on your calendar
- Setting a reminder alarm on your phone
- Writing your deadline on a notecard and putting it on the fridge, bathroom mirror, or anywhere you’ll see it every day
- Setting mini goals and deadlines for each step of the tax preparation process
Options if you owe
Avoiding filing your taxes because you may not have enough money to pay what you owe? Options to cover your tax bill include a repayment plan with the government or a short-term option like an online payday loan from MyCanadaPayday.com – easy and secure.
“Our one-page online loan application will have you on your way in minutes, while our team takes care of the rest,” says Sundeep Thind, manager of MyCanadaPayday’s Surrey office. “We are Canada’s fully licensed, online payday loan specialists, and we’re happy to help you take care of that unexpected bill, so you can get back on track.”
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My Canada Payday is a Canadian-owned and operated direct lender. To learn more, call 604-630-4783 or email getpaid@mycanadapayday.com.