With February upon us we are rapidly approaching our busy tax season. Although the personal tax filing deadline falls on April 30, 2018, procrastination can be your enemy at this time of year, particularly for those of you with more than one or two slips to report. Here are a few friendly tips on how to prepare for the upcoming tax season:
Know what to expect
- Review your prior year filing to get an idea of what you may be reporting this year:
- Employment income slips (T4 slips)
- Investment income slips (T3/T5 slips)
- Pension income slips (T4A for CPP, OAS, or private pensions)
- Donation receipts
- Medical receipts (only worthwhile if significant)
Know when to start assembling tax information
- T-slips are generally issued at the end of February (T3 slips are the exception, issued at the end of March), so look for these in early March
- Donation receipts are typically mailed out early in the year, so start looking for those now
- If you have significant medical expenses, you can start assembling that information now
- Note that Pharmacies can usually print out an annual summary that shows ALL of your prescription costs for the year
Be organized this tax season
Keeping all your information together in one place and organized by type will help relieve last minute panic and make preparing your return much more efficient.
It is important to keep revenue and expense information neatly organized, with supporting documentation (receipts, invoices, etc.) on hand; many people find Excel to be very useful to track their self-employed earnings.
If you are considering making an RRSP contribution for 2017, note that the deadline falls on March 1, 2018. If you are unsure if making a contribution this year would be advantageous, feel free to get in touch for some guidance.
What’s New This Tax Season?
The federal government chose to target corporations for most of their revisions to the tax code this year, with only a few minor changes for personal income taxes.
- No More Federal Children’s Fitness or Children’s Arts Tax Credits
- Effective 2017, these Federal tax credit are no longer available (but the Provincial credits still remain, so bring in your receipts!)
- No More Education & Textbook Tax Credit
- Effective 2017, this tax credit will no longer be available to students BUT the tuition tax credit will remain in effect
This list is not exhaustive, but identifies the changes most likely to impact your tax filing.
If any questions arise as you begin to assemble your tax information, feel free to contact us. We are here to help!