Another year is here and that means it's also the start of another tax season. My goal is always to save you the most money possible on your taxes. So this is my ultimate guide on how to prepare for tax season like a pro.
Gather your Documents
This sounds self explanatory but trust me, having one centralized location where you can store all your documents makes tax time so much easier!
For my clients I recommend having a large envelope or large zip lock bag or even a shoe box that they keep in a permanent spot in their home. This can be in their junk drawer or in their office or tacked up to their corkboard.
As tax season begins and you start receiving your various tax documents like T4 slips, medical receipts, donation slips, childcare receipts etc. you'll want to immediately put them in this envelope/bag.
Then when it's time to file your return empty out your envelope/bag/box and sort your documents into their categories (slips, donations, medical, childcare, etc.) and everything is ready to go.
This way nothing goes missing during the year and it saves you running around trying to find everything, trying to recover misplaced documents, or completely forgetting things.
Want to get a head start on 2025? Create an envelope/bag/box for 2025 now so during the year any relevant invoices, receipts or tax documents can be stored in one spot.
Centralized Location for E-receipts.
We live in a digital age and a lot of receipts now come through our email. Printing these documents out is not necessary. Instead create a folder in your email labeled '2024 Taxes' to store all of your 2024 tax documents in one place.
This is especially useful in the event of a CRA review or audit since all of your documents are already in one place and you don't have to hunt for them.
Bonus tip: Set yourself up for next year. Also create a folder for your 2025 taxes. Then during the year, as you get various receipts and invoices you'll use on your taxes, pop them in the folder. This keeps them all in one place and saves you from having to scour a year's worth of emails looking for everything and hoping you don't miss something.
Medical Summary Print Outs
Did you know all medical offices and pharmacies can give you an end of year summary print out of what you spent? You no longer need to worry about trying to keep track of every little prescription slip or wonder if you're missing some of your invoices from your chiropractor.
Instead, at the end of the year call all your relevant medical offices (eye doctor, physio, chiro, dentist, orthodontist, etc.) and each pharmacy you visited and ask for your yearly summary. Most offices will be able to email you the summary, however some may ask for you to pick it up in person.
Know What You Can Claim
This is crucial! As I said in the beginning - our goal is to pay the least amount of taxes and part of that is knowing what you can claim. Each year Canadians overpay on their taxes simply because they just didn't know they could claim something as a credit or a deduction. I don't want to see this happen to you.
I have a full FREE list of every credit and deduction available along with the line number it correlates to. The updated list for 2024 will be available in February once CRA releases the finalized tax forms but in the mean time I HIGHLY recommend getting the 2023 list HERE. Most of the list will be the same each year.
I recommend downloading the list and going over it to see all the various things we can claim to reduce our tax bill. Don't leave any money on the table.
If you are unsure about a credit or deduction you can use the line number in the search bar on Canada.ca to find out more information about it. You can then use the line number to know exactly where to claim the credit/deduction on your tax return.
Want my help?
I am currently accepting new clients. I'd be happy to hop on a complimentary, no obligation Zoom call with you to discuss your tax situation in more detail, answer your questions, and get you a quote for my services. To book go to the booking calendar and select Personal Tax Filing.
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