Some steps can be taken throughout the year to make filing your taxes quicker and easier come April:
- Keep good records throughout the year so you are not buried under receipts and paperwork in April (accountants refer to this "filing system" as the dreaded shoebox). Set up an accordion folder with multiple tabs and file all tax receipts as they come in: T-slips (T4s, T5s, T3s), RRSP contribution receipts, charitable donation receipts, medical expenses, home office and other business expenses and automobile expenses, to name just a few.
- Organize all of your tax information before bringing it to your tax preparer or accountant, summarizing the different sources of income as well as all of your deductions and tax credits. If you have made installments throughout the year, be sure to indicate this amount. All of these steps will save time, which will save you money in tax preparation fees.
- Staying organized will allow you to focus on planning and ensure you have taken advantage of every possible tax provision that will put money in your pocket.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.