Picking up where we left off last week with EFAP’s financial expert Alphil Guilaran, we now return with part two of a four-part series, Stress and Money.

What should people do during the first few months in the New Year before filing taxes?

1) RELAX but start gathering some information

First and foremost, RELAX!  If you are an employee without any other sources of income outside your job, your employer has already deducted your taxes at source meaning every time you receive your paycheque, the taxes have already been deducted so the federal and provincial government don’t need to chase after you for the taxes you owe.  However, your best move is to start gathering your tax slips, receipts, charitable donations, medical receipts and child care expenses so you are not hurried and stressed when the tax filing deadline arrives in April.

2) Identify how to maximize potential deductions and credits

There are many tax credits and deductions out there and you need to find out which ones you are eligible for based on your income and expenses from January 1 to December 31, 2013.  You may also want to involve your spouse or partner into the discussion in the event there are some tax planning opportunities based on how they earn their income. A simple deduction employees should explore is the RRSP deduction because it can potentially provide tax savings but you will need to make a contribution by the March 3, 2014 deadline.  One of the biggest reasons employees access the EFAP Financial Literacy Program during the months of January to April is to talk to a professional accountant or get a second opinion before they file their taxes by the April deadline.

What are some good EFAP resources that VCH staff can take advantage off to ease financial stresses?

Start with a Financial Consultation by calling EFAP 604-872-4929 and/or Financial Workshop for VCH employees. You can register online here.

Stay tuned

Stay tuned for the third segment of Ask the Expert’s four part series, Stress and Money, where EFAP’s new Client Relations and Wellness Services Manager, Simone Riml, will explore the relationship between stress and money.

Alphil Guilaran is a co-founder of Financial Literacy Counsel. He leads and directs the company’s financial education practice and is a trusted advisor to a select group of clients. Alphil is responsible for developing and delivering financial education programs to individuals, families, corporations, and institutions with an emphasis on retirement income planning, tax reduction strategies, and inter-generational wealth management.