Tax Tip Tuesday – How to Spend Less on Your Taxes!

To those who plan on having their taxes done by the April 30th deadline and haven’t yet brought your papers to your accountant, I say the following:

  • Shame, shame, double shame!
  • Odds are you’re rushing your documents over to his/her office and will therefore be pretty darned disorganized. Since I’m a nice guy (even this time of year!), here are a few pointers to follow in order to save some money:

#1 – Don’t give your accountant any receipts for expenses unless he/she does your bookkeeping!

Unless you plan on spending $500+ on your tax return or if your accountant keeps your books, no need to hand over receipts.  Save money by organizing your expenses into an excel workbook or even write up a summary by hand (unless you’re a doctor in which case an excel sheet would be much appreciated.)

#2 – Don’t include property tax receipts or school tax receipts; that tax credit no longer exists!

In past years, your tax accountant needed those papers to claim certain tax credits….but no longer! (For those who rented, remember that attractive, purple Releve 4 Form??) The solidarity tax credit is calculated based on your family income (and several other factors) but no receipts are needed!

#3 – No boxes of stuff!! Folders!!   

The second I see a box filled with papers, I know I’m in for it.  And by “it” I mean a massive invoice!! Do yourself a favour and organize your papers into folders, if possible by category of revenue and expense.  It’s a great way to make friends with your accountant.  He may even offer you a brownie next year.

#4 – Yes, I’m fun to hang out with.  Yes, I can be very entertaining (especially on Wednesdays (all day) and Dress-Up Fridays between 10:06am and 11:24am….don’t ask).  However, when you drop off your papers, make the visit a quickie. The best time to do tax planning and discuss your family’s financial situation for the upcoming year is NOT in April. Let’s chat about it in May when I can take the time I need to ask the relevant questions, give you the correct advice and plan your next near properly!

Have a nice Last-Week-Of-Tax-Season everyone!

Time is the Fire in Which We Burn,

The Funny Accountant.

For more information on this and other tax issues, please contact The Funny Accountant/President of MK & Associates at mitch@mkassociates.ca

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