Cue the scary music: it's tax season. For most people this is the most dreaded time of the year. Taxes seem like a dark hole of confusion and money flying out of your bank account. What can you do to make it out of this season alive? Read on to find out.
There are many reasons we pay taxes, the foremost being that taxes allow the government to run expensive programs that benefit citizens, such as the military and healthcare. Think of taxes as a way the government forces you to save for upcoming expenses: pay your taxes now, little by little, and a trip to the clinic is covered. Not only are taxes important to pay, but you have to pay them or else you will be seriously penalized.
Filing your taxes does not have to be a painful experience. There are a lot of little things you can do throughout the year to make this month much easier on yourself. If you haven’t done some of the things we are about to list, fret not! There is always next year. So, what does tax season entail?
First, you need to keep detailed records of your expenses. This means keeping receipts and keeping them organized. Do yourself and favour and buy a filing system that you can easily slide receipts into throughout the year. When tax time hits, go through this folder and make sure if you have everything you need while also throwing out unneeded receipts.
A filing system will also give you a place to store your T-4’s and T-5’s as they come to you during the early new year. These documents are very important and a hassle to get replaced, so hold onto them. They are crucial in providing official evidence that the income you are claiming is accurate. These forms are the easiest way for you or your tax specialist to file your taxes.
When it comes to actually filing your taxes, you can either mail your documents in or submit them electronically. The electronic way is preferred as a faster, easier way to get your items submitted and see quicker returns. If you do decide to submit hard copies, you can pick up a tax return package at any Canada Post. Check out this website for information on where to submit and how to submit your taxes.
After you do all this, you are done! You will either owe money or receive money (hopefully the later). Taxes may seem difficult–and they are quite the task–but by planning ahead and taking it step by step, the process will go smoothly. Remember that the general deadline for submitting your tax information and making any payments is April 30th!
Your Real Estate Professional,