Evelyn Jacks: Preparing your income taxes is an important life skill

Your responsibility to pay income taxes is not going to go away, so you should know how to prepare your annual tax return. How about making a tax preparation course part of your "back to schoolî plans?

There are three reasons to learn tax preparation. First, it is an important life skill: the more you know about your tax filing rights and opportunities, the more you are the master of your money. Second, it gives you the skill to help others with their taxes, should you wish. Third, if you work with a financial services professional, you'll get more bang for each dollar spent because you'll ask knowledgeable questions.

To earn more and keep more, you need to know how to do three things:

1. Keep more of the first dollars you earn;
2. Hold onto to your dollars longer;
3. Ensure your dollars have purchasing power when you need them.

Your return on investment can be significantly enhanced when you work with a professional advisory team, including a tax and an investment professional. Those well-trained professionals will not only prepare and file your returns, but also work together to plan your investment strategies. Your tax advisor ó who is your tax educator and advocate for your tax-filing rights ó will work with your financial advisor, the steward of your family's money. Together, you and your team can work to make sure you pay only the correct amount of taxes on your income and your capital throughout your life cycle.

So, do consider taking an income tax course as part of your personal development. Even if you plan to pass your tax preparation along to a pro, you'll be better able to ask important tax questions of all your financial advisors. This will lead to more purposeful decisions about your investments. Investing in your tax knowledge, in other words, will increase your return on investment.

It's Your Money. Your Life. Be prepared to speak to a professional when you have a "triggerî question, that is, when there is a life events, financial events or economic events that may trigger the need for you to make a decision.

How do you choose a tax and a financial advisor? Tune in next week when I'll share an interview checklist. If you're wondering how you will find time in your busy schedule to do a tax preparation course, consider the Knowledge Bureau's great series of income tax and corporate tax courses by e-learning. Do check that out if you are interested.