FIVE TIPS TO HELP YOU WITH YOUR TAX RETURNS

Posted on 6 December, 2022 by Micheal Alexander

Filing tax returns either as an individual or on behalf of your business can be a time-consuming and challenging affair. To make this process more manageable and ensure that you avoid tax return mistakes that could cost you a hefty sum of money, it’s advisable to enlist the services of an experienced Chartered Professional Accountant to assist you in filing your tax returns. To ensure that you file your tax returns correctly, Sabeeh Naseer, Chartered Professional Accountant has listed five tips to help you with your tax returns. Keep reading to know what they are. Financial Statement New Westminster

Tip #1: Save in tax-efficient accounts

If you save your money in accounts that are tax-deferred or tax-exempt, you’ll be able to save a considerable amount of money and avail of tax benefits. Saving in tax-efficient accounts would be an ideal way to reduce your taxes.

Tip #2: File your tax return on time

Missing the tax return deadline could lead to a late-filing penalty and can cost you thousands of dollars. It’s essential to file your tax return on time, as there is no provision for extending this deadline.

Tip #3: Keep complete records

Your checkbook, personal budget, or online banking tools are essential to help you remember income and expenses that should be reported on your tax return. Besides, you also need invoices, receipts, sales slips, or other written documentation that shows what exactly you paid for. Keeping these records will ensure the smooth functioning of the tax return process. Tax Filing Surrey

Tip #4: Plan ahead

Planning ahead and keeping yourself organized when filing tax returns is important, as it’ll be easier for you to complete your taxes and avoid tax mistakes that could cost you time and money.

Tip #5: Take advantage of income splitting

A person with a higher income can contribute to a family member’s RRSP with a lower income, thus lowering the higher income person’s tax liability and potentially moving them into a lower tax bracket.