Sometimes we look at the small things that we can take advantage of with our taxes as being insignificant and don’t really bother with them. Taking a look at whatever small tax breaks you can get is a good habit to form because they can end up accumulating to a point where they really do make a difference.
A good example is for those people who suffered with flood issues this year. During this type of mishap there are so many other important issues to attend to that the last thing people have on their mind is their tax obligation. It can end up that they are not able to get their taxes filed on time or meet their payment dates. In cases like this the CRA may be forgiving of the penalties and interest that can come as a result of this tax obligation delay. It is not something that you should just take for granted as being awarded to you though. You will have to file their form RC4288, and then the tax department will decide whether your circumstances meet the tax flood relief criteria. This is done on an individual basis so that those that are not in this circumstance don’t take advantage of this.
Even if you are living in an area where you are not normally affected by flooding it is always a good idea to store your important documents, like those that you are in need of a tax filing time in a safe place. It can be a real hassle trying to get these documents replaced especially when there is a tax deadline that has to be met.
While this is one type of relief that you can take advantage of when the circumstances are there, don’t forget to think about all the standard type credits that are available. There really are a lot and if you are not aware of them and what might be applicable to you then you could be missing out on some potential tax deductions.
If you think that tax deductions are not all that important, think about how many times you have been at a sale where the items are tax free, as part of the promotion. The sellers are going to cover the taxes on the purchases, and it makes you feel good that you don’t have to, even though it’s a small amount. When you focus on the potential tax breaks you then realize that they all help a little, and it gives you a bit more incentive to get your taxes done on time.
It can be a bit confusing knowing what you can use to reduce your taxes, however you also have the option of using a good affordable tax accountant who will know just what you are eligible for.
