Monday, May 25, 2015

Start planning now for 2015 Canadian income tax return filing

It's never a good idea to leave things till the last minute. You wouldn't start planning a trip when you were half way to your destination, now would you? That sounds obvious, but that is what most people do when it comes to tax planning. They wait until late in the year to get numbers together and look at their income and tax brackets.

In order to effectively plan for the coming tax season, it is always best to estimate what your net taxible income will be. You will have to ask yourself a few questions and see a tax consultant to prepare yourself for 2015 Canadian income tax filing on April 30th (Unless we have another heartbleed situation to extend the tax deadline next year).

Tax Planning Questions to Prepare for 2015 Canadian Income Tax Filing

  • Will my income be different than last year?
  • Will my tax deductible expenses be different than last year? 
  • Is filing status or family size different? (Changes in filing status or family size can make a big difference from one year's tax balance to the next)
  • Did I move to a different Province in Canada (Tax rates are very different throughout the Canadian Provinces and Territories)
Tax planning should start when the tax year starts. It helps to know how much tax you will be paying based on an estimated income. How will this year's income be different than last years? Did you obtain a new source of income that will increase your taxable income this year? Will you not be receiving income that you received last year? These changes affect how much tax you will pay in the next tax year.

Tax planning right now can help you determine an estimated tax you will pay, and it will help you prepare to have the amount owed ready to be paid if there are any big changes from last year. By talking to a tax professional in Calgary, you can also find appropriate tax deductions, tax credits, and allocate expenses to your sources of income.

For all your tax planning and tax preparation needs, call Dymas Services Ltd. today.

Phone: (403) 991 3091