2017 Tax Tips: Plan for Your Tax Refund. . .But File Accurately First

Did you know that last tax filing season, the average tax refund was just under $1,800, ($1740 actually) or about $150 a month?  That’s a lot of money to give to the government on an interest-free basis.  Make a new year’s resolution for 2017:  pay only the correct taxes owing and invest the rest.

Start by making your RRSP contribution to reduce 2016 taxes if you have not already done so.  Do that by midnight March 1, 2017.  That can help you reduce how much tax is withheld at source from your paycheque.  Perhaps you started working out of your home or using your car for business; maybe you qualify for one of this year’s new tax credits.  Find out now and keep more money in your jeans all year long.

Next, filing your 2016 tax return on time, will help you to get that over-deducted tax money money from your 2016 earnings,  back working for you and your family quickly.  It’s a great idea to invest that refund in a TFSA if you can afford to do so.

If you plan to hire a tax specialist, make that appointment immediately, to determine what is needed to meet new tax filing rules, discuss what has changed in your personal affairs, and ensure you take advantage of all your rights to arrange your affairs within the framework of the law to pay the least taxes possible.

Remember, births, deaths, marriages, divorces, new jobs and job terminations – all can impact the tax return.  Jot down all your life and financial changes for 2016; and what you will change going forward to meet your financial goals in 2017.

But your tax specialist will get much busier; tax planning consultations make more sense now.

Finally, if you are going to try to do it yourself this year, take the time to take a professional tax course.  That’s available online now through Knowledge Bureau.  Check out the free trial opportunity here; then call for a free consultation to make a great decision to take more control of your tax and financial affairs in 2017.

©2017 Knowledge Bureau Inc. All Rights Reserved. Used with Permission.

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