It's almost Christmas and another year of hard work is almost over! This also means that personal tax season is just around the corner. Start planning early! Here are a few tips:
- March 1, 2017 is the deadline for contribution to an RRSP for the 2016 tax year.
- Organize your receipts and be ready to claim the credits and deductions. Most common are: medical expenses, child care expenses, children's art expenses, public transit, professional dues/memberships, and charitable donations.
- Children's fitness tax credit has been reduced to $500 per child for 2016 and will be eliminated for 2017, so don't miss your last chance to claim the credit!
- If you are reporting rental or business income, start organizing your receipts and computing rent/revenue received and expenses paid. A well organized, complete, and accurate spreadsheet goes a long way during both tax preparation and CRA audit.
- If you would like to switch to CRA online mail rather than traditional snail mail, you need to register with CRA in order to access the information. This service is very convenient and fast and is highly recommended by us. Visit the CRA website for more information.
- If you are a couple of years behind with your filings, take this opportunity and become a compliant taxpayer. Not only will you have peace of mind, but you might actually end up with money in your pocket! This may be particularly true for credits that are not claimed directly on the tax return, but filing a return is required in order to receive the credit. Examples include: child benefits, Ontario Trillium benefit, GST/HST credit and others.