Five Tips To Get The Most Out Of Your Tax Return
With tax season closing in, most taxpayers are either looking to pay as little as legally possible or recover as much as they can in the form of tax returns. If you’re thinking along similar lines, you’ll first need to do a little research about income tax returns. You’ll also have to check your financial statements and make sure all your records are in order.
To help you carry out these steps diligently so that you can reap benefits, Infinite Accounting Solutions has put together a list of five tips to get the most out of your tax returns. In these tips, we’ve covered what you have to do to prepare and plan your taxes correctly and where you can save money.
Tip #1: Don’t forget about tax deductions
When filing your taxes, claim all your tax deductions, which may include charitable donations, medical costs, and prepaid interest on a mortgage and education expenses. Talk to your accountant or a tax expert to see what other deductions may apply to your situation.
Tip #2: Keep all of your financial records for the last six years
Make sure you keep all those income slips, and if you’re self-employed, you’ll need to keep receipts of expenses for which you’re claiming deductions. For example, entertainment, utilities for your work from home office, etc., this will help minimize any issues if the CRA audits you.
Tip #3: Do your taxes online
Filing your taxes online makes it easier and faster to submit your taxes. It also leads to fewer mistakes. There are some tax filing software services also available with straightforward explanations so you can maintain your accounts digitally.
Tip #4: Invest your tax refund
If you don’t have any debts to pay off, it makes sense to invest in a tax-free or tax-deferred plan, or maybe into the stock market. In this way, you can boost your savings from your taxes.
Tip #5: Save money for retirement
As mentioned above, put away some money in Registered Retirement Savings Plan (RRSP) contributions as a future tax benefit. It can create a larger refund where you can withdraw the tax-free cash for either retirement or other purposes.
For more tips to get the most out of your tax refund, reach out to Infinite Accounting Solutions. We are a renowned bookkeeping firm in Langley, British Columbia, specializing in different financial solutions. We are a team of dedicated accounting professionals who will help you manage your finances and business’s accounting processes. Our accounting services include daily bookkeeping, payroll services, reconciliations and review, accounting software training, nonprofit accounting, and bookkeeping.