Tax season gets no love.
There’s no Tax Season Santa....not even a cute little Tax Bunny that leaves little audit slips throughout your garden. It does not smell of gingerbread or roasted ham — it probably reeks of pencil shavings, two-day-old cold coffee and calculator tape. But if it were a holiday, we’d call it the Start Doing Money Right holiday. Because it’s the perfect excuse to hit reset, improve your finances, and be better poised to crush tax day next year — not to mention retirement.
To help celebrate the world’s least popular holiday, Tax Pro Niagara would like to share these seven tips to not only survive the season, but become a tax-season financial genius.
1) File on Time
Don’t pretend you don’t know the deadline is April 30th. It’s always been April 30th! If you don’t file on time and you owe the government taxes, you’ll pay a penalty: 5% of whatever you owe, plus another percent per month for up to a year. One of the essential tenets of being a financial genius is: don’t give away extra money to the CRA.
2) Actually...file EARLY!
If you file earlier in the season, you’ll receive your refund within a couple weeks; procrastinators who wait until 11:59pm on April 30th will have to wait four to six weeks for the refund to be processed.
3) Married or Common Law? Bundle up those Charitable Contributions
Yearly contributions of $200 and under are only eligible for a 15% tax credit, but anything over $200 earns 29%. So if you file your and your spouse’s contributions all together, you can reap the most in tax breaks.
And if you haven’t donated to a charity since 2007, you’re eligible for a larger tax credit — it’s called a first-time donor's super credit. And it means an additional 25% tax credit for monetary donations on top of the tax credits mentioned above (15% for anything under $200; 29% if it’s more).
4) Leave no Stone Unturned
When it comes to deductions, leave no stone unturned.
There may be scads of tax deductions you haven’t considered, such as unreimbursed car travel for business or in-home care of an elderly parent and your home office.Talk to Tax Pro Niagara about what you may be missing out on.
5) Invest your Refund as soon as you get it
In fact, put it right into your RRSP — you’ll get a jump on those contributions! Unless, of course, you’re carrying any credit card debt. Always obliterate any credit card debt first, since no market gains will ever outpace interest rates you pay on your plastic.
6) Always tell your friends about Tax Pro Niagara (and like us on Facebook)
Did you know that with our "Refer a Friend" Program, you'll save $5.00 off your taxes for each referral? So why keep a good thing to yourself? That's just greedy.
7) Use Tax Pro Niagara's Handy Checklists
Did you know that Tax Pro Niagara has a Checklist for almost every Tax Situation? It's True...take a look online (or click the link below) and you can find a checklist to help get you ready for your upcoming Tax Appointment. There are lists for Regular Taxes, Rentals, Employment Expenses, Moving Expenses and even Small Businesses.
Just Click on the "Appointment Checklists" @ www.taxproniagara.com and let the organizing begin!
Did you know that Tax Pro Niagara offers Bookkeeping Services as well?
Imagine having your Books "explained every step of the way" and getting out from under that pile of receipts! Whether you need a full cycle bookkeeper, or just someone to help get things in order...
We are here to help you ORGANIZE!