As we head into 2023, simplifying the process of filing your tax returns for 2022 is easily done through proper planning. Taking time to prepare your records can speed up the process of receiving a refund and reduce the cost of services provided by your accountant as they work to meet the tax filing deadline.
REVIEW
Make a note of any significant changes in your life over the past year—things like a change in marital status, legal name, address or where you work. Ask us how they impact your return. For example, if you sold your principal residence, you have to 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, including qualifying travel
- 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
- Ontario
- Manitoba
- Saskatchewan
ORGANIZE
Contact us in advance, so we can guide you in what to send us. We provide a PRIVATE ONLINE FOLDER to you to upload all receipts and documents. This will decrease the time (and expense) of preparing your returns.
If anything is missing, check your online accounts and contact anyone responsible for providing such information.
Download our Tax Checklist or Personal Tax Organizer. Either one will help you organize your tax information. Your accountant or tax preparer can only include what they are made aware of.
CATEGORIZE
Whether you are self-employed or not, organize your paperwork into categories. Use a spreadsheet to document and summarize it. This will make the whole process more efficient, ensuring you get the best results.
Here's a tip. Start collecting and converting paperwork to digital versions as you receive it, then store it all in one location on your computer. That way, you will be ready for the next tax season.
EDUCATION
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.
RESPONSIBILITY
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
Start by either downloading our Tax Information Checklist or our Personal Tax Organizer.
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.