If you're in the midst of filing this year's tax return, why should you be thinking about next year's return? Well, as I wrote earlier this month, a lot of families are coming in and being caught off guard because the Enhanced UCCB, combined with the disappearance of the amount for children, is putting people in a position where they may owe tax this year.
As thousands of new Canadians settle into Canada, among the many things that they'll need to take into consideration are their tax obligations. The Canada Revenue Agency provides in-depth resources for New Canadians to learn more about our tax system, and their filing requirements.
Death and taxes; two of life's unwelcome certainties. Whenever facing a stressful task, breaking it down into chunks and focusing on each practical step separately can be immensely beneficial. That's why I recommend using the "planning backwards method" when approaching tax season.
Only a few weeks into tax season, nearly a quarter of my clients who have children are facing the unwelcome surprise that the Enhanced UCCB, combined with the disappearance of the child amount, is actually putting them in a position where they may owe some tax this year.
The money in your RESP can be divided into three basic groups: your contributions, government grants and the income earned on both of these. There are some nuances to how all of these are treated for tax purposes, so you should plan how you take the money out of the RESP.
For students, the month of April is quickly approaching and with it comes not only the stress of final exams but also the deadline for filing your tax return. Of course you need to make sure you're paying what the law requires, but you also want to take advantage of some of the ways that students can reduce their tax bills.
The Super Bowl and the Oscars are just around the corner. Offices and organizations nationwide are going to be putting out the call to have colleagues, friends and family members make their picks. So, if you're curious about how the Canada Revenue Agency views the tax implications of prizes and winnings, here's a quick refresher.
It may be tempting to pay for certain things in cash because we think that saving a few dollars here and there can't hurt; however, we fail to see the larger impact of what happens when we do. The underground economy makes it challenging to protect the country's revenue base and hinders the government's ability to keep taxes low. When people pay in cash, they skip out on paying the taxes that support things like healthcare, education and public transportation -- the very social services we rely on every day.
While the extension is good news for anybody who might have left their tax filing to the last minute, it demonstrates that mistakes can happen fairly easily. If the almighty taxman can miss updating a date on a memo then it's completely fathomable that we might make a few errors when it comes to our taxes. But tax mistakes can be costly.
It's tax time and the deadline is just days away. Your month of tax procrastination may be stressing you out, but don't worry. The following tips will get you through the final days. By filing late or failing to file, you will incur a range of financial penalties. Why just throw your money away?