We’re all trying to stretch our dollar as far as possible in this economy. We budget, read flyers and clip coupons. Sometimes an overlooked area of money savings is on your own tax return. Yes, really. And when it comes to Canadian families with kids, there are a lot of ways to maximize your refund.
Get organized! For some it’s a perfectly maintained set of files or a computerized system. For others, it’s a basket, file or box. I personally like the accordion files you can stash anywhere. You need to find a system that works for you. The end result is that all the important paperwork should be in one place where you can find it come tax time.
Catch up! If you’ve fallen behind on your taxes or other government filings get things caught up. Late fees and penalties charged by Canada Revenue can get expensive and they can also freeze your bank account. No one wants to experience this.
Know what’s important! Each tax year I sort through a mountain of useless paper people think apply to their taxes but doesn’t. Here’s a quick list of information you want to keep together:
- Notice of Assessment (your refund cheque was attached to it)
- Any T-slips
- RRSP contribution slips
- Childcare and camp receipts
- Fitness receipts for your kids
- Medical expense receipts
Don’t look at a meeting with your accountant like a visit to the dentist. Find someone you’re comfortable with and have a coffee together - the more we know about your family, the more ways we can suggest to help with your tax savings. Scared of the accountant’s bill? Don’t be, time and again the bigger refund (or smaller tax bill as it were) more than takes care of the cost.
If you’d still like to do your own taxes, then get educated. Websites like TaxTips.ca and the Revenue Canada site can help.
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