Personal income tax planning is important
There are many ways to minimize your personal income tax liability. Personal Income Tax planning allows you to make the most of available exemptions, deductions and benefits.
Depending on how much you earn, you can take advantage of personal tax planning techniques or refundable tax credits.
For example, a Registered Retirement Savings Plan Contribution (RRSP) can reduce your netincome. The profits in your RRSP portfolio are completely tax free – you don’t pay taxes on dividends and interest on the money earned from the investment.
You may qualify for refundable tax credits such as GST/HST and Working Income Tax Benefit (WITB). You could also increase your Canada Child Benefits.
To avoid a large tax bill and also ensure that you file your tax returns correctly and within deadline, planning in advance is essential.
The Federal government earns 30% of its revenue from personal income taxes. As a Canadian taxpayer, you’re doing your bit to help pay for the country’s public infrastructure, schools, healthcare, and cultural activities.
The tax filing deadline for a particular year falls on April 30 of the following year. A few exceptional circumstances may extend this deadline (ex: the COVID-19 pandemic).
If you file your returns after the filing due date, the Canada Revenue Agency (CRA) charges a daily compound interest on outstanding balance starting May 1 until you pay your taxes in full. The more you delay payment, the bigger your out-of-pocket penalty.
Leverage Tax Optimization Strategies from SAR Accounting and Tax Solutions
Filing your personal income tax returns can be confusing and overwhelming, and this is understandable. By engaging our trusted personal income tax service, you will be maximizing your tax savings without the hassles of researching tax planning strategies and the various deductions and credits applicable to your situation.
Errors in filing your tax return can come under the CRA’s scrutiny. If you’ve forgotten to add information or made mistakes while entering or calculating numbers, you will receive a Notice of Assessment. You can then make the necessary changes following which the CRA will send you a Notice of Reassessment acknowledging the changes or explaining why it did not accept the changes.
Our professional tax planning specialist can be counted on to avoid mistakes on personal income tax returns. You don’t have to let tax worries creep in before, during or after filing your returns. You can get done with it once and sit back until the next tax season.
Don’t have an income? You should still file a return.
Some of the government’s tax benefits apply to Canadians regardless of their employment status. So, even if you’ve not earned an income or you’re between jobs, you should absolutely file a return.
If you would rather not file your taxes, you’ll be missing out on the tax benefits that you can legally claim. The monthly and one-time payments will make a difference and help you sustain a dignified lifestyle as you search for a new job.
Filing zero income tax returns isn’t a useless exercise. Some of our clients have successfully claimed thousands in benefits during sustained periods of unemployment.
We share a few things in common with sought-after tax professionals in Alberta. We do your tax planning and accuracy is ingrained in our services.
We’re also different in some ways – here’s how:
Contact one of our experts now!