The CRA might have allowed a Canadian tax filing extension this year, but that’s not stopping many from waiting until the very last second. Have you ever been putting off your tax-filing?
Because of this ‘love bug’, the CRA has expanded its traditional tax filing deadline of April 30th to May 5th. This expansion was announced following the CRA found its systems were jeopardized with the Heartbleed Bug, and individual data of some ancient bird filers were captured by hackers.
The good thing is that if you have not registered, your information was not compromised (score one for the procrastinators!). The terrible news is that while it was lucky your advice was not affected, you still need to file your taxes. However, don’t fear — I will let you get there. Only follow these simple steps below.
Measure 1: Choose Software or Tax Professional
Perhaps the most hotly debated decision once it comes taxation is whether you need to go with an off the shelf software such as TurboTax, or visit the neighborhood accountant.
Here’s my take — Software tax programs are less costly, but are notably biased. All these taxation programs are required to meet with the CRA’s tax group policy conventional, and thus are dedicated to grabbing your tax payables. The CRA’s tax collection policy is such that the tax person will contact you when you did not pay enough taxes… however he won’t bother if you’ve paid a great deal!
Maintaining this policy, the tax software programs are not designed to match a similar benchmark to capture all of qualifying credits depending upon your way of life, economic status, etc.
Having said that, if you possess a relatively simple return (i.e. you might be single, students, and also have small revenue & credit sources), then you are likely to eliminate having a tax software. However, for those who own a business, a family, or many sources of revenue and deductions, it can be most useful to get out a pro.
Measure 2: Don’t Live in Fear of Filing
As a fellow procrastinator, I have come to realize that a lot of hesitance comes from fear, notably of these not known. Taxes fall into this particular category for almost all of us and hence an all natural supply of stress and stress, which then leads to the brutal cycle of more sympathy, guilt and stress.
But taxes are just nothing to be frightened of! Consider it in this way — taxation are really a game. There really are pair of rules you must play with within. Your purpose is to pay as little money as you possibly can to the tax man without having a warning by the referees…. I am talking about, the CRA auditors. It is up to you if you wish to sub in a pro player to play with you, or head on the market exclusively with your own purchased gear!