When it comes to tax season, many individuals begin to panic and try to get their taxes in to their small business tax accountant before the deadline of April 30th each year. Both the new tax return and one’s payments from the previous year have to be made before or on April 30th if a person wants to avoid all the possible penalties that come with not paying your taxes on time.
When it comes to actually get the taxes done, the majority of Canadians choose to file their taxes online. You can do this yourself, or use a great online accounting firm to take care of everything for you.
There are many benefits to getting a professionals help as opposed to doing everything oneself, but that is another story all on its own. For the time being, we will focus on what an individual needs and what avenues they can use to file their taxes.
Methods Through which Taxes can be Filed
There are three main methods through which an individual can file their taxes themselves: On paper, online, and on the phone. For all three methods, Canadians need to have their tax info slips on hand.
This includes but is not limited to the T4, T3, and T5013 slips. If you lost one of these slips (they are generally issued around February and March) you need to contact your employer or whoever issued you the slip and get another one as soon as possible.
Choosing a Tax Software and Updating your Information
Once you have the slips in hand you need to go forward with choosing which software you will use to file your taxes. This can be a bit difficult and the vast majority of Canadians choose to skip this step and simply file with a small business tax accountant instead.
The major benefit that one gets out of going through a chartered accountant is that they will be able to apply for deductions and claim other benefits as well more thoroughly. Accountants have a firm understanding of what is and what is not allowed and what you are entitled to and what you can claim from the government.
Apart from the slips, you will also have to report your income and update your personal information. It is vital that all your personal information such as your marital status and address are always up to date with the CRA because not updating them can create a long delay in you receiving the benefits you deserve.
When Should I Expect my Tax Return?
Many individuals get their tax return in the next two weeks, especially if their return was filed online. Individuals who choose the longer paper route should expect to receive their return within the next two months.
When you choose to file your tax return on your own it’s going to be a lot more work on your end. You will need to figure out which software to use. NETFILe is an example of a good certified tax preparation software you can use to finish your taxes on your own.
Apart from knowing the software, you will have to figure out which benefits and deductions you are eligible for, how to calculate them, and how to submit them. Everything from child care to employment needs to be evaluated. There are dozens of deductions and benefits you may be eligible for.
Going to a chartered accountant can make your life much easier because they have the experience and expertise to file everything for you perfectly.