Tax season is around the corner and it is time to start preparations to file your tax returns. Are you dreading going through your financial documents and preparing the tax return application? Maybe you have even come up with an excuse as to why you cannot file your tax returns – such as ‘I don’t know how to’ or ‘I don’t have the time right now’.
It is quite simple, if you don’t file your tax return this year, you are the sole person who will suffer. You will miss out on the many benefits accessible through filing your returns. What are those benefits?
Like any good Canadian citizen, you probably pay your taxes to the Canadian government. Well, the good news is that the government may actually owe you some money back. About 58% of people receive a refund from the government when they file their taxes, and the average refund is $1696.
It is more likely that you will receive a refund than receive a tax bill from the government.
Get yourself Financially Organized
If tax season is forcing you to get your financial situation in order, then that is definitely a good thing. At least once a year, you should take the time out to review your financial situation.
It is vital that you are aware of your savings, the tax owed, your credit score, and most importantly, the debt you are under. Debt, if not managed carefully, can grow and suck you into a debt hole, which is not a very good thing.
You can also check up and ensure that you are not a victim of any credit fraud or identity theft.
File it Early
The problem that crops with a last-minute filing of your tax returns is that it is a rushed job. A rushed job is, often, a botched job. You may make a mistake, insert the wrong data, miss a tax, or end up paying extra tax.
If you file your tax returns early, you are able to do a better job.
Quicker and Simpler Process
You do not have to manually mail in your tax return application to the Canada Revenue Agency (CRA). The digital process makes it easier for you to send in your application without much effort on your part. The digital process is also more fluid. Any returns will be deposited directly into your bank account.
Get Tax Credit
Many don’t consider filing their taxes if their income does not fall into the tax bracket. While you are not required to file your tax returns if you don’t fall within the tax bracket, you are missing out on tax credits. To claim your tax credits, you need to file your tax returns.
Furthermore, once your tax return application is processed by CRA, you will receive a Notice of Assessment, which is a valuable financial document.
Filing your tax returns is not as complicated as you think, and you can avail of such benefits by doing so.