You know tax filing season starts in mid February, yet you are often not prepared when it is here. As if you have never done this before. Being ready and prepared for income tax filing season could make the difference between getting a large return, or getting nothing (and even paying back to the government)
Tax season basically starts from the first day in the year! You have to set a special folder for the new year , label it, and start putting everything to do with taxes in there. This includes donation slips, medical expense records, RRSP statements, interest on student loans etc.
By having this simple folder, you are better organized and focused. This ensures that no tax related records are lost or misplaced. When tax season is here, you have all that you need to start your filing right away.
It also helps to have previous year’s return with you as well, just in case you need to refer back to it.
If you are doing your own taxes, it helps to have a good understanding of how the CRA works, and what you can deduct or use for your fillings. There are lots of Canadian books that specialize in offering advise on how to get the most out of your tax returns.
In upcoming articles, we will outline ways on how to get the most of your income tax return and avoid paying the government instead.
Just remember, income tax filing may be done in one hour, but preparation for it is ongoing from the first to the last day in the year. The more ready you are, the easier and probably better returns you will get.