Alright I finally killed my tax beast yesterday for my wife and I. After about five hours of entering numbers, checking numbers, finding errors and fixing errors. The end result was a nice $1700 refund for me and my wife’s total tax bill was about $150 (which again was all CPP contributions). If you can’t tell already, I hate doing my taxes.
Yet this year I felt I learned a few interesting things which I thought I would share.
- Don’t have your RRSP’s deducted at source once you are pulling in a fair sized stream of investment income. As your yearly investment incomes grow, so will your related tax bill from it.
- Keep on top of tax changes to ensure you are getting every deduction you can. For example, I forgot this year my son gives us a $2000 tax credit until QuickTax presented me with the option.
- If something doesn’t look right, go back and double check your numbers. Case in point, while entering in information for my wife’s business one of the numbers looked high. So we crossed check it with something else and realized there was an error. The number was correct, but entered in the wrong category.
- Don’t enter a number unless you can prove it. While looking up one number to add in I realized my memory of the number was completely off. I thought it was X when it really was Y. I didn’t realize the difference until I confirmed the value in the source documents.
- It’s ok to get frustrated. Take a break when you need. I had to have couple of breaks yesterday as I needed to keep my emotions calm and my mind rational (A special thanks to Preet who provided a very timely phone call to distract me from my taxes for a while.)
So are you done your taxes? If so, what did you learn this year? If not, get started already they are due in just nine days now.