Tax Panning – Start Early

You should plan ahead so that you are prepared to file your tax return next year without too much difficulty.

One of the most important things to do during the year is to store all tax-related documents in one place.  If you have a filing cabinet, have one or more folders for these documents, including:

your tax returns and supporting documents for previous years notice of assessment and any other correspondence from Canada Revenue Agency records of tax instalments made wage statements medical and dental cost receipts transit pass receipts receipts related to children’s activity and arts tax credits child care costs receipts receipts for moving expenses, if you moved at least 40km to be closer to a new job, to run a business, or to attend a post-secondary educational institute full time charitable donation receipts political donation receipts RRSP contribution receipts records of repayments to Home buyers Plan or Lifelong Learning Plan records of RRSP or RRIF withdrawals records of investment purchases and sales in non-registered accounts (transaction confirmations) investment account monthly statements

If you don’t have a filing cabinet, pick a drawer or two in which to store these records, or get a multi-pocket expandable file folder, preferably legal size.

If you are an employee, make sure that the TD1 form is filed with your employer is up to date.  Review the amount of income taxes, Canada Pension Plan contributions and Employment Insurance Plan premiums being withheld from your wages.

Now is the time to look for a tax professional if your financial situation is getting more complicated.  Don’t wait until next tax season, when they are all extremely busy.