Taxes & RRSPs

THURSDAY, FEBRUARY 1, 2018 P3 SPECIAL SECTION & TAXES RRSPS BEFORE YOU BEGIN BE SURE TO HAVE ALL YOUR INCOME INFORMATION SLIPS. If you are not sure who you will be getting slips from, use your prior year's tax file as a guide. In general, unless there has been a significant life change, most taxpayers have similar information slips from year to year. Be aware that some information slips are not prepared until mid to late March (for example T3 and T5 slips from financial institutions). Remember too that for some self-reported income, you may not receive information slips. Spousal support is one type of income where you will be required to calculate your totals and self-declare. Gathering everything together prior to getting started will make the preparation process smoother. Remember that the Canada Revenue Agency receives copies of all "T" slips, including the T4, T4A, T4E and T4RSP, just to name a few. Penalties for failure to report income, even accidental omissions, can be hefty. At Liberty Tax, in most cases our offices have the ability to check for income slips that the Canada Revenue Agency has on file for taxpayers. If you are missing a slip we are happy to obtain copies for you. DEDUCTIONS ARE USED TO REDUCE YOUR TAXABLE INCOME AND THUS THE AMOUNT OF TAXES YOU PAY. For example, you may have RRSP contributions, child-care costs or professional fees that you can claim. Be sure to keep all of your support documents should Canada Revenue Agency request to review them, and understand that an invoice is not sufficient proof to support a claim. A bill for child care is proof that you have been charged and compelled to pay, it is not proof that payment has been made. Similarly a credit card statement may show that a payment has been made, but not what that payment was for. Keeping all correct support documents will determine if your claims will be deemed allowable should your file be reviewed by the Canada Revenue Agency. NON-REFUNDABLE TAX CREDITS ARE USED TO REDUCE TAX LIABILITY. These can include medical expenses, charitable donations, education amounts, public transit amounts (valid until June 30, 2017) to name just a few. Be sure to keep all receipts and support documents for an audit-proof tax file. Understand that non-refundable tax credit amounts are lost if the taxpayer does not have tax owed. They, with very few exceptions, cannot be carried forward to a future tax year. MANAGING DEDUCTIONS AND TAX CREDITS WELL IS WHERE EXTRA TAX REFUND DOLLARS MAY LIE. Our life events, family situations and changes to our financial positions may trigger significant changes to line items we may claim. Keep track of all major life changes: births, deaths, marriages, divorces, graduations, career changes, or even an elderly parent moving in. All of these can have an effect on our tax file. Understanding and properly filing your taxes is becoming more and more a part of strategic wealth management, so be sure to take advantage of all available credits and deductions. LASTLY, BE AWARE THAT EVERY YEAR THERE ARE CHANGES TO OUR FEDERAL AND PROVINCIAL TAX RULES, LAWS AND FORMS. New credits and deductions are added, former credits and deductions may change or be eliminated. At Liberty Tax, we keep up to date and are aware of changes that can save you substantial amounts in tax dollars, penalties and interest. A simple mistake or accidental omission may have serious consequences, so it pays to utilize tax experts. We look for ways to optimize your results. BE TAX READY THIS SEASON 866-290-2222 LibertyTaxCanada.ca LibertyTaxCanada LibTaxCanada Y O U D O L I F E WE DO TAXES Visit one of our 21 Winnipeg locations 866-290-2222 LibertyTaxCanada.ca LibertyTaxCanada LibTaxCanada Y O U D O L I F E WE DO TAXES 866-290-2222 LibertyTaxCanada.ca LibertyTaxCanada LibTaxCanada Y O U D O L I F E WE DO TAXES 866-290-2222 LibertyTaxCanada.ca LibertyTaxCanada LibTaxCanada Y O U D O L I F E WE DO TAXES It is never too early for Canadian taxpayers to organize themselves to file their 2017 personal income taxes. The following is a list of considerations that will help you organize your thoughts and processes. IN CANADA, IT IS YOUR RIGHT TO ARRANGE YOUR AFFAIRS SO THAT YOU PAY THE LEAST AMOUNT OF TAXES LEGALLY POSSIBLE. AT LIBERTY TAX, WE WILL USE OUR KNOWLEDGE AND TRAINING TO DO JUST THAT! Our life events, family situations and changes to our financial positions may trigger significant changes to line items we may claim.

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