Taking Care of the Expenses You Have to Earn an Income
In many cases you just go out to your place of employment, earn your income, your boss deducts the taxes owed, and at the end of the year you get your T4. There are many circumstances though where individuals have some expenses that are related to their job that they have to pay for personally. It could be that these are tax deductible, and will help to offset your tax obligations. You may also be entitled to the employee goods and services tax rebate concerning this.
Every little saving you can glean on your taxes is worth the small effort it takes to accomplish this. Where the problem often lies is not knowing what you may be potentially eligible for, and trying to figure this information out in the tax regulations can be difficult. This is a problem you can eliminate by using an accountant that cares about the average working person.
Even having the right accountant to do your taxes for you, if you are a tax payer that comes within this type of tax category doesn’t eliminate some work on your part. You are obligated to keep proper records of your expenses, if you hope to be able to claim them.
One of the most common types of employment that brings an individual into this type of tax category is a commissioned sales person. These individuals are not working for themselves, so they are categorized as an employee. Yet, at the same time in order to earn those commissions there could be expenses involved. For example, they may have to use their own vehicle in order to go about their job. In that case then the expenses related to the vehicle during this work obligation may be eligible. This means keeping track of the receipts like for the gas used during the working hours. You may even have to keep track of the mileage.
One of the biggest disappointments that a tax payer in this situation can face is to find out that he may have been eligible for potential tax deductions, but has not kept the pertinent records to substantiate the expenses. This is another good reason why you want to use the services of an accountant even if you are not sure what your tax position is. These experts can advise you as to what you need to make sure you are not missing out on any potential tax breaks.
Taxes are not cheap, and commissioned sales is not an easy job. Every penny you earn is well earned, so why not take advantage of every potential tax break you may be eligible for.