Five tips for a less-taxing tax season
Alphil Guilaran is executive director of the Financial Literary Counsel, which partners with EFAP to provide VCH staff with financial planning advice.
Thanks to a partnership between the Employee and Family Assistance Program (EFAP) the Financial Literary Counsel (FLC), VCH staff have access to workshops and one-on-one consultations to help you understand money, debt management and investment and savings programs.
“As the tax filing deadline approaches, we get asked to shed some light on how to approach this year’s tax season,” says Alphil Guilaran, executive director of the Financial Literary Counsel. “But the top three common areas of concern that I see are reducing stress, debt and taxes, questions about doing RRSPs, TFSAs or both, as well as pension and estate planning.”
Tax tips
Michael Deepwell, a chartered accountant at FLC has the following tax tips to help you make tax season less taxing.
1. KNOW THE DEADLINE.
April 30, 2013 is the last day to pay your tax balance owing without incurring interest and penalties. April 30, 2013 is also the last day to file your 2012 tax return. If you are self-employed you can file up to June 15, 2013, but you must still pay any balance owing by April 30.
There are a number of software programs and online tools to help you prepare your return, including apps for your mobile phone. Check here the list of CRA approved programs here: http://netfile.gc.ca/sftwr-eng.html. You can also consult a professional tax accountant to prepare your return.
2. REVIEW LAST YEAR’S NOTICE OF ASSESSEMENT
Remember to bring any carry-forward amounts to your 2012 return. Check your 2011 return, My Account online, and Notice of Assessment.
Carry-forward amounts include items such as: losses (such as capital losses, limited partnership losses, or personal property losses), foreign taxes not claimed in the past, tuition and education tax credits for attending a prescribed university, charitable donations to a registered charity in Canada in the past 4 years, contributions to your or spouse or common-law’s RRSP not claimed in prior years, moving expenses from 2011, or business-use-of-home expenses not previously claimed.
3. MIND THE GAPS
In lieu of consulting a professional tax accountant, you should compare your 2011 return to your 2012 return to identify gaps. Did you pay professional membership fees that were not reimbursed by your employer? Do you have safety deposit box fees? Did you volunteer time as a fire fighter. Do you maintain a dwelling and provide care to an elderly parent or grandparent over the age of 64? Tax preparation software should prompt questions to determine whether you are eligible for these deductions and credits.
4. DID ANYTHING CHANGE?
Ensure you correctly reflect changes in your situation on your 2012 tax return. Did you move more than 40 kilometers for work or school during the year? Get married, separated, or divorced? Have a conjugal relationship for at least 12 continuous months? Have or adopt a child? Go to school? Start a small business? All of these have important tax consequences.
5. CAN I CLAIM THAT?
Claim expenses paid that were part of your employment. Your employer must complete form T2200 to approve the expenses relate to your employment. Expenses include such items as: cost of supplies, reasonable amounts for use of your vehicle, and work-space-in-home expenses for employees that work at home and their employer’s office.
Questions?
If you want to know more about preparing your return, please consult a professional tax accountant – a Chartered Accountant with expertise on the Income Tax Act.
If you have any questions about filing your taxes or require a second opinion please do not hesitate to contact the EFAP office at 604.872.4929 to book a complimentary private consultation or workshop.
Details on upcoming workshops will be found on the EFAP and CCRS websites.