As Canadians we all look at ourselves as being in the same boat when it comes to our tax obligations, yet each of our tax situations is unique to us based on our circumstances. Often we hear about people who seem to be living well yet they boast about never having to pay taxes at the end of the year when it comes time for their tax returns. You on the other hand live a very similar lifestyle but it always seems like you have to dole out a few hundred bucks along with your return.
There are lots of reasons that this can be happening. Perhaps your employer has made a mistake in your payroll tax amount held each pay cheque. You may want to confirm this with them. Then it could be that you have extra sources of income that put you into a higher tax bracket, and you have not been paying tax on this throughout the year. Or it could be that you are not taking advantage of all of your tax credits, and this is why using Toronto accounting services can be beneficial.
As a regular tax payer it is a big challenge to try and keep up with every little rule, regulation and potential credit that you may be entitled to. Most people who do their own taxes really focus on making sure that they don’t short change their taxes owed as they don’t want to end up in trouble with the tax department. Often they overlook the potential credits they are entitled to, and you cannot expect the CRA to notify you that you missed a bunch of credits.
Another potential problem that has arisen over the last few years it seems is that a lot of people are very anxious to get their tax returns done if they anticipate getting money back. They will have their taxes completed by the closest tax preparer who makes it known that they are quick filers. The problem that can arise from this is that the individuals who are preparing your returns have very limited knowledge and training, and most likely are only going to get you the minimum amount back when you may be entitled to more. Now with e-filing you can expect the same speedy return on your taxes as what these basic tax preparers are offering. Of course quality pros offering Toronto accounting services do get very busy around tax time, so it wise to get into to see your Toronto accountant as early as possible, once you have all your tax documents gathered.
