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Preparing Your Records For the 2022 Tax Season
Through proper planning, simplifying the process of filing your tax returns for 2022 is easily done. By taking the time to prepare your records, you can speed up the process of receiving a refund and reduce the cost of services provided by your accountant or tax preparer to meet the tax filing deadline.
A change in marital status, legal name, address or where you work are all examples of things of significant changes in your life over the past year. These and anything else should be noted. Ask us how they impact your return. For example, if you sold your principal residence, you must report the sale, even though it is not taxable.
Individuals who file on their own often miss vital details when submitting their annual tax returns. Your accountant or tax preparer must be aware of any changes so you do not miss out on any benefits or subject yourself to penalties.
HERE'S A SAMPLE OF WHAT YOU MIGHT MISS
- Deductions or credits from last year
- Medical expenses
- Disability tax credits (DTC)
- Canadian caregiver credit (CCC)
- Union dues
- Licensing fees
- Tuition credits
- Moving expenses
These are often missed, so be sure to bring in any receipts that can be used for deductions for which you qualify. If you are unsure, include it but mention it to us at the time.
Some new considerations are
- Tax on Split Income (TOSI)
- The Climate Action Incentive rebate for taxpayers in the eligible provinces of
- New Brunswick
Contact us in advance, so you understand what to provide. Ensure you have all the necessary details when coming in. Don't just show up with a shoebox full of receipts. You will increase the time (and expense) of preparing your returns.
Documents you need to provide can be in digital or paper copy form. If anything is missing, check your online accounts and contact anyone responsible for providing such information.
Whether you are self-employed or not, organize your paperwork into categories. Use a spreadsheet, document it in a paper ledger, and summarize it. This will make the whole process more efficient, ensuring you get the best results.
Here's a tip. Start collecting paperwork as you receive it and store it in one location. That way, you will be ready for the next tax season.
Educate yourself on what details are used to file your taxes. Be aware of how income is calculated, what eligible deductions are and how everything adds to a refund or a tax owing.
Once the person preparing your taxes is done, you will need to review it with them. Ask for explanations on matters you do not understand.
Sign up for your CRA "My Account." You can see your tax history and all other relevant information when you are logged in. This way, you can make sure it is always up to date.
Despite what may seem like an inconvenience, filing your tax return is a legal obligation. Your accountant must adhere to Canada's Income Tax Act when trying to reduce what you owe, but in the end, the responsibility is on you.
GET HELP WITH YOUR TAXES
The checklists are fillable forms you can complete and save to your computer. The organizer is more comprehensive and suited to self-employed clients.
My office will guide you with professional expertise. Contact us any time to get started.
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