Filing a tax return is essential if you live in Canada. If you don’t have all your tax documents up to date you can run into a lot of trouble and be forced to pay certain penalties. Since most people are far too busy to keep up with their taxes throughout the year they generally tend to file their taxes very close to the deadline.
Of course, it is okay to file taxes in the last minute but if you do, then you’ll definitely be missing out on some bonus features that you can only get access to by filing your tax return early.
Here are three major benefits of getting your taxes over with before tax season hits its peak.
1. Save Money
If you choose to go through a chartered accountant in Toronto as opposed to getting the taxes done yourself you will probably be able to save a decent amount of money by filing early. As the time for tax returns draw closer, the rates that small business tax accountants offer generally rise as well since they are overloaded with work. If you get your taxes done before time then you can usually get a better rate at more accounting firms.
2. Get Essential Information
Many people need to use the information from their tax return in order to complete certain tasks. For example, if a university student wants to apply for a student loan then they need to get information from their tax return and their parent or spouses tax return in order to submit their application.
If you file your application early you will be able to access all of this essential information and therefore be able to submit all your other forms in time as well. Not to mention that applying early-on also lets you pocket your tax refund earlier.
3. Prevent Fraud
It’s no surprise that as tax season roles around criminals everywhere try to take advantage of the situation and cash in on other peoples tax return. This fraud is very common and prevalent during tax season because of the overload of information the CRA is dealing with. It can be hard to figure out if there are fraud applications and transactions going on.
If you want to decrease the chances of becoming a victim of this sort of theft you should apply early.
If you want to save money on your taxes, get access to essential tax information, and also prevent fraud and theft you should consider applying for your tax return as early as possible.
The sooner you get your papers filed, the faster you will get your tax refund as well. If you don’t have the time to visit an accountant you can always schedule an online appointment and get all your accounting needs taken care of from there.