Most Canadian taxpayers have already filed their income tax returns for 2019 and now they need to prepare for the next year. There are many things you can do to improve your situation next year. Implementing the right tax-saving strategy can help you reduce your tax bill and bring about capital growth.
When preparing your tax returns, don’t forget to consult a financial planner who can provide objective guidance based on your unique financial situation. Income tax is likely to be one of your biggest financial headaches. However, planning and seeking the right advice can improve your situation. Here is what you can do to prepare for the tax season:
Gather your tax information
The first step is to get everything you need to calculate your income, including deductions, credits and expenses you want to claim. You might receive statements or slips from your employer or financial institution. You can get a copy of your tax slips from the Canada Revenue Agency’s site.
Options to complete tax returns
When it comes down to filing your tax return, you can get this done through several channels: on paper, by phone, or electronically by software. People who are eligible to receive an invitation letter in the mail may be able to complete and file their returns for free by phone. People with low or fixed income or people whose financial situation doesn’t change much are likely to receive a personalized invitation.
People with a simple tax situation can also take advantage of the Community Volunteer Income Tax Program. You can find a free tax clinic near you between February and April. At a tax clinic, volunteers will help you complete your income tax and benefit return.
Deadlines
The deadline for most people to file their 2020 tax return or pay any due amounts will be April 30. If you’re self-employed or your common-law partner is self-employed, the deadline to file your return is June 15. If you fail to meet the deadline for any reason, you might have to pay penalties or interest. To avoid interest, make sure to conclude your tax-related affairs before deadlines.
Fill out your tax return
If you’re planning to complete your tax return using certified software, you may be able to fill out your return automatically. This makes it easy to complete your taxes automatically by filling in parts with information the CRA has on file. For this, you need to register and create an account.
Make sure to update your account with CRA by providing and updating your information including your home address, banking information, number of children in your care, and your marital status. To get the right benefit and credits, let the CRA know about any changes.
If you’re not sure how to plan or file a tax return, consult a financial planner. In Edmonton, Kewcorp Financial helps individuals and businesses plan and optimize their taxes. As a team of qualified and dedicated financial planners in Edmonton, we make sure to thoroughly analyze your situation and provide valuable recommendations. Please contact Kewcorp Financial at 780-449-6292 or click here.
Did you know?
There are several ways you can reduce taxes in 2020.
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