I hate to be a Grinch at this time of year, but the accountant in me must remind you of the season that comes after the Holiday season……yes Tax Season!
Organizing Yourself For Tax Season
It is hard to believe that we are approaching a new year. The anticipation of 2017 will soon turned into our reality. Just like last year this time, the various tax deadlines are approaching faster than we realize.
Hence now is the perfect time to at least take stock of what you have and what you need to prepare your 2016 personal income tax return.
You will need to compile a complete listing of your tax slips prior to the preparation of your 2016 personal income tax return.
How you ask?
We have created a stress-free system with four (4) simple steps to help you track and compile the documents needed to prepare your 2016 personal income tax return.
Track & Compile Your 2016 Personal Income Tax Documents
Review your prior year income tax return and create a Tax Form List (note: initially this list will only include the items on your prior years’ income tax return; this list will evolve in the subsequent steps).
Filter your Tax Form List, removing items that are no longer relevant for the current years’ income tax return (e.g. Employment Insurance Earnings, Tuition and Education Credit, and Child Care Expenses) and keeping items that will apply to your current income tax return (T4 Slips – Employment Income, T5 Slips – Investment Income, and RRSP Contributions).
Review new activities in 2016 that will impact your 2016 personal income tax return, and add these items to your Tax Form List (New part-time employment –T4 Slips, new investment income – T3 Slips and T5 Slips, and a new baby – Dependent Tax Credit and Child Care Expenses).
Periodically check the items on your Tax Form List as you receive your tax slips. When all the items on your list have been received you are ready to prepare your 2016 personal income tax return.
Some Key Upcoming Tax Deadlines
- RRSP Contribution Deadline – The last day in 2017 where RRSP contributions are deductible from your 2016 personal income tax return is March 1, 2017.
- Personal Income Tax Return Filing Deadline.
o For those individuals who do not earn self-employment income, since April 30, 2017 occurs on a weekend, the filing deadline for your personal income tax return is Monday, May 1, 2017.
o For those individuals who either earn self-employment income or who’s spouse earns self-employment income, the filing deadline is June 15, 2017.
- Note that all personal income taxes owing are due and payable by Monday, May 1, 2017 regardless of self-employment.
It is advisable to seek professional advice to understand the tax laws that impact your particular situation, and to guide you through the complexities of Canadian Income taxes.
AWFS Consulting Inc. offers professional tax, business advisory, and accounting services to clients. The company’s mission is to offer financial leadership and support to clients in this ever-changing economic environment by empowering clients with financial knowledge.