How to Be More Pro Active With Your Tax Situation
We all like to complain about taxes for several reasons. The biggest one is because we believe we are being taxed to death, and the other is that it is a nuisance when we have to take time out to do our tax returns even though its only once a year.
While there is nothing you can do about having to file your yearly tax return there is lots of things you can do to be proactive about your tax situation.
One thing that you don’t likely want to do is really learn what the tax system is all about. This is extremely time consuming and complex, and fortunately we have good Toronto accountants who have taken this task on for us. It is just a matter of utilizing their services and expertise.
What you should learn though, is what refundable and non refundable tax credits may be available to you. Probably you know the common ones but you really should determine if there are some additional ones. Also, don’t under estimate the value of the non refundable tax credits as they can help to reduce the taxes you owe.
There are some things that you need to do throughout the year in order to entitle you to some of the credits when it comes tax time. For example, gathering receipts for your medical expenses is one of them. Some of these expenses may meet the criteria for a credit but you need to have your receipts on hand in case the CRA asks for them.
You may not be the type of person who really pays close attention to the budget reports. Many people feel that they are only one person and no matter what they think of the government budget there is nothing they can do about it. What many of us have forgotten is that these budgets include a report of what much of our tax dollars are used for. If you don’t like the way a political party is spending your hard earned tax dollars, or what they propose for the future then remember this when it comes time to vote in the next election. Unfortunately many of us as Canadians have really taken a back seat when it comes to giving much thought outside of complaining about the Canadian tax situation.
Check out to see if there are any potential tax credits that would be really beneficial for you to take advantage of for the next year even if they are not applicable for the current years taxes. For example, if you have young children what about setting yourself up so you can claim some of the activity benefits that will help with your taxes and bring them some enjoyment as well.
To really take advantage of a better tax situation it means becoming a little more proactive in both your thoughts and actions, rather than just putting up with the circumstances.