Doing Your Own Tax Planning all Year Round
Most of us know as Canadians that when spring arrives that tax time also arrives. For a month or so we scramble around getting all of our documents in order and finding the right kind of help to get our tax forms completed and sent in on time.
It is now that we show some interest in what kind of tax incentives or tax breaks that might be available to us so we can cut that tax bill down just a little bit. Often we are disappointed because we find that there may have been a lot of additional tax breaks available to us that required some specific criteria that we did not meet.
However, if we had done a few things differently throughout the year then we would have been able to take advantage of them. This is one benefit of using a quality Toronto accountant to help with taxes, as they know what steps need to be taken to qualify for additional tax credits and can prepare you as well as your taxes for these.
By planning to do your own tax input all year around it can actually save you tax money. Instead of just forgetting about your taxes for another year once you have completed them, immediately start thinking about the next tax year and take the right steps.
First, talk with your accountant and see what he suggests for future tax breaks.
Make sure you stay organized with all of your documents, by setting up a file whereas the year progresses you put all tax related information in this file. Things like your medical receipts or other documents you need. If you are a business then you definitely need to have your paperwork organized and done properly.
There are a lot of potential tax credits and by being aware of them you will know what you have to do throughout the year to qualify for them. For example, if you have children then you should check out what may be available to you besides just the basic credits, or if you are going to be a new homeowner, or perhaps if you are going to do some work on your home. See how the CRA views this and more.
To reduce your taxes you really need to be informed, have a good accountant, and tax plan all year around.