As the year draws to an end so do many other things, and it also means the beginning of a new tax year. You now have to deal with your tax responsibilities for the previous year, however. What you need to consider is what changes took place throughout the year that is going to make a change to your tax situation.
You got married or are living common law:
Perhaps at some point throughout the year you decided to get married or move in with your partner. Both a marriage and a common law arrangement can have an impact on your taxes. If you have changed your name you will need to update your social security information. Both of you if you are employees will need to change the amounts that are withheld from your paychecks from a single status to a married status.
How your taxes are prepared will most likely be different as you may now be eligible for various credits that you were not allowed in the past.
You had a baby:
Having a new baby is going to affect your income, as you will likely be receiving child tax credits for your new little one. You may also have additional expenses such as a babysitter if you are in the workforce. You will need to determine what is your position is in this regard as being a potential employer which gives you great tax responsibilities in several different ways. If you have a live in nanny be sure to check out the tax rules and obligations concerning this.
Back to school:
Perhaps you were a mature student and decided to go back to school this year. There are several possible tax credits that you may be eligible for both as a part time or full time student.
You separated or divorced:
If this is a situation you found yourself in then you may find that your taxes are going to be quite complicated for this year’s tax return. You really should seek out professional help at least for this year.
Death of a loved one:
You may have lost someone that you were either responsible for completing their last year of taxes or you received an inheritance. Either way it would probably be much easier for you to use a quality accountant to help you sort out the taxes in a proper manner.
These are just a few of the many changes that can take place during the year that could have some type of effect on your tax filings. If you are in any of this situations or have experienced other changes that could have an impact on your tax matters then give us a call here at Toronto Accountant, we would be pleased to handle your tax matters for you.
