Why it pays to plan for tax season

OTTAWA (NC) — From groceries to electricity, life has become a lot more expensive in Canada. With ongoing high inflation and fears of a looming recession, many of us are rightfully looking for new strategies to save money.

Thoughtful tax planning is one way to save some cash, according to Christine Van Cauwenberghe, head of financial planning at IG Wealth Management.

“With a little preparation, Canadians can keep more of their hard-earned money in their pockets this tax season,” she said.

“By adopting a few key strategies, you can take advantage of opportunities to significantly save at a time when every little bit counts.”

Below are four strategies to help you save money this tax season.

Know your personal tax information

It’s important to know what options are available based on your past tax filings. Check the Notice of Assessment (NOA) sent to you last tax year by the Canada Revenue Agency (CRA) or access it through your My Account information on the CRA website.

My Account can go even further, helping to ensure you’re not missing out on deductions or any carry forward information like any losses, and you can even arrange for direct deposit of any tax refund.

Make sure you have all your tax slips

Failure to include an income amount on your tax return can result in a penalty. The exact penalty is a complex calculation, but note that you should ensure you have all your tax slips (T4, T4A, T4RSP, T5008, etc.) and that you include all of them on your tax return.

Any missed slip could mean a financial penalty.

Don’t forget to organize your tax receipts

Ensure you have all your tax receipts related to any tax deduction or credit claim. Receipts for any childcare expenses, medical expenses, charitable donations or other claims can minimize the taxes you pay.

Meet with a financial advisor

From maximizing your tax credits and deductions to staying on top of important deadlines and dates during the year, a financial advisor can suggest the best options for your unique circumstances to help save you money at tax time.

Find more information on financial planning during tax season at ig.ca or speak with an advisor.

This report was first published by News Canada.