Preparing Your Taxes: What Should You Know?

If you are planning on preparing your taxes yourself this year, then there are some things that you should keep in mind. Even if you have been doing your taxes for years, it can be easy to forget to include some crucial aspects.

Include All Necessary Information

The first thing you will want to do is ensure that all of your personal information is on your tax documents. If there are errors on your taxes and do not notice them when you submit, then you may time quite some time to get it fixed. If you do come across something that is wrong, make sure that you correct it or make a note of it. Some vital things to double check include your full name, address, and SIN number.

Be Aware of Tax Changes

With Covid 19, there are so many unpredictable things that come up. When it comes to filling out your taxes, you want to check daily on any changes that may have been made. If you are not aware of these changes, you may miss out on tax returns. Keep in mind that there are many ways to get tax deductions. With the pandemic, many have had to start working from home. This is just one area you can put down for a tax return.

Having Documentation Organized

This is a crucial thing to be doing throughout the entire year. When it comes down to tax time, you should have your required paperwork ready. Not only will you have to deal with unnecessary issues if you cannot find them, yet it will also cause unneeded stress. Even if you are not very good at staying organized, it is essential to have a routine to keep everything in order. Some tips can include keeping a tax folder in a safe spot and making reminders to save potential tax documents. This way, you not only make taxing time easier, yet you can save yourself hundreds of dollars.

Have All Your Taxes Ready

You will have lots of payments within the year that you can get slightly reimbursed for. This can include medical, business, work, and other receipts, which you can get partially refunded for. To qualify for getting reimbursed, though, you need to submit the receipts for the purchases.

Set a Date

Once you have all your tax paperwork and documents, it will be time to submit them. Keep in mind that the last tax day for most Canadians is April 30, 2022. Depending on career and situation, some can submit by May 2, 2022. Aim to have your taxes submitted one to two weeks before your deadline. Having them sent in early will ensure that they get there in time, especially if there is a delay in the delivery.

Filling out your taxes this year can be done successfully when you have the proper tips put into place. Yet if you feel like you may prefer to have someone fill out your taxes for you, please reach out to my office. We do income taxes for $50+hst per person so if you need help, just reach out!

Sources

-Schroeder, Melanie (2022). 5 Tips to Help You Prepare Your Income Taxes Effectivley. CPA. Retrieved from https://www.bccpa.ca/news-events/latest-news/2022/february-2022/5-tips-to-help-you-prepare-your-income-taxes-effectively

-Weltman, Barbara (2022). Steps to Take Before You Prepare Your Taxes. Investopedia. Retrieved from https://www.investopedia.com/articles/pf/07/tax_prep.asp