It's tax filing time – embrace it!!!Submitted by Helkie Financial & Insurance Services Inc. on March 27th, 2018
It's tax filing time. Don’t fear it – like it or not, it happens every year. Embrace it!
The fear of tax time stems from a few issues you have the power to change:
- Preparing for filing is very time consuming
Preparing to file can be time consuming if you leave it to the last few days. This is a common problem. And yes, it's overwhelming if you choose to do it this way. If this is you, you may want to change this pattern. Unless you want to be doing it for the rest of your life you should develop a system. There are many apps to make this process easier. You can “track as you go,” create a spreadsheet or just use a few envelopes and save all your receipts. Use your system every year and the process will get easier.
- Completing the tax forms is confusing
If this is a huge burden, you should hire someone. Most tax filings aren't complicated. That said, you could miss deductions or credits you're entitled to. That alone is worth the money you pay to file. Tax filing services are not expensive, so shop around. Ask yourself – how much is your time worth? Then decide if you're willing to pay for it.
- Shock at the amount of tax you're paying
Use this time wisely and really look at this number. Tax dollars are real dollars you owe and cannot spend or save. This is a really important point. Did you do all you could to reduce the amount of tax you pay, including contributing to your RRSP, submitting all your receipts and claiming all your deductions and tax credits? Take your frustration and put it to good use. Make sure that if you missed any opportunities you don’t do it again. If you keep making the same mistakes over a 5 or 10 year period the numbers will add up. And who loses? Not the CRA.
You know what they say – the only sure things in life are death and taxes. While that statement is depressing, fighting tax time should not consume your time. Taking control of your personal finances is one of the most powerful ways to create life balance.