Tax Savings

While Christmas is only ten days away, there is another big event looming. The year is almost over, which means that Tax season will be upon us before we know it.

Taxes are not fun. Whether you have a professional to do them for you or not, taxes are a massive chore that many dread all year long. For some, they look forward to receiving a cheque in the mail from the government. For others, they brace themselves for the cheque they will have to write to the government.

No matter how old you are or what your current occupation is, there are ways to save come tax season. With some strategic planning, you can prevent yourself from owing more than you need to.

Here are our top ways to save during tax season:

1). Be organized. Make sure you separate all business, school and personal receipts so that come tax season you are ready to go. That being said, make sure you save all your receipts so that you don’t have to scramble at the last minute and so that you don’t forget anything. Organization will save you money AND time.

2). Claim all medical expenses. Tax advisors say that missed medical expenses are one of the most common ways that people miss out on tax breaks. Any travel you had to do, little treatment costs–pretty much everything is worth noting in your taxes. You never know what will be your big break.

3. Strategize with your Tax credits. A variety of different types of tax credits can be transferred or held onto in order optimize your return or minimize your fees. This is especially important for students, since they are allocated a number of credits for things such as tuition and textbooks.

4). Use a program or person that can help. Lots of software is available to protect you from making wrong calculations, forgetting to claim certain things, or missing out on potential tax credits. Remember that while software is a great resource, it doesn’t always work best if you have added elements to your taxes, such as being self-employed. In those cases, see a professional!

We always recommend you speak with a professional who can make sure you are doing your taxes correctly and that you are saving every penny you can. Good luck organizing your receipts!

Your Real Estate Professional,

Ken Richter

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