Are you ready to make the most out of your
? Though it might be late to be filling, for those Canadians who requested an extension on their taxes, these strategies and tax savings will prove to be more than beneficial. We're sure those who are self employed will find many ways to take advantage of these here too! Canadians who can, should claim as many tax deductions and credits as possible. This will then potentially lower their tax burden at the end of the year. Furthermore, the end goal is to make certain to avoid all the common misunderstandings, pitfalls and the limitlessness misinformation that does exist. We will dispel some of this for you right here!
Now, before we actually start listing some of these tips, we want to point out a very important issue with financial gifts or benefits gained on your job. Some Canadians believe these don't have to be claimed, as they think they are non taxable. Modest gifts from your employer might be okay to not claim, but if you're receiving end of year bonuses that are above $500--and this is every year; these kinds of things have to be claimed. If it was something like every 3 to 5 years, then you could get away with it. Unfortunately, the CRA will pick up on discrepancies through audits and by other regulations.
Let's take the time to look at some of the things you should do and some of those you shouldn't do when it comes to your taxes and gaining those precious
2016 Tax Season Tips To Make Finances Easier At The End Of The Year
1) Don't be afraid to accept a pay raise or another form of promotion
Just because you receive a pay raise or a promotion doesn't necessarily mean you'll be in a new tax bracket and have to pay more out in taxes at the end of the year. In fact, the opposite might be true. Too many Canadians are losing out on tax benefits by not accepting promotions and raises versus any truth to the latter. Be proud of your work and your position and accept what you've earned!
2) The CRA DOES reward honesty, so don't hesitate to point out who might not be paying taxes the way they should
Reliable tips that the CRA receives do profit for some Canadians. It was just a few years ago that the Canadian Revenue Agency put rewards in place for those who would report on others not properly paying taxes and such. While it might feel like a snitch position--think about how it can keep you safeguarded when it comes down to auditing and other investigations! Honesty really does pay off.
3) You can file your taxes online without paying more
So many Canadians believe that filing taxes online can lead to unexplained penalties and other unnecessary costs, but this isn't true. As long as you're familiar with how to file taxes and if you have the similar earnings year after year, filing online can save you time and money. The earlier you can get your taxes taken care of the better!
There are definitely more tax myths out here that intimidate and scare people for no reason. Filing your taxes might take time, but it's a necessary evil. Knowing the facts about the CRA and how it all works makes everything even simpler. With further investigation and educating, you'll learn more tips and strategies that might be perfect for you! If you haven't filed yet, don't wait to get that extension approval!