Tax Preparation

It's that time of year, all the tax software and large tax preparation companies are advertizing on the radio and TV.

They seem to have an unlimited budget to spend to try to convince you to use their service, be careful if it's too good to be true it usually is. These companies can afford to file your tax return for a really cheap price or even one that will file for free… Please read the fine print on any agreement from these companies, they are looking for the person that wants his money (refund) right away, they do pay but only a reduced portion of what you're entitled too. They keep a large percentage of the refund as their fee; this amount is many times more than if you just paid a professional to do your tax preparation then waited the 10 to 20 days to get the cheque from the government.

In our office the people preparing your tax return have gone on a tax course this fall to become familiar with all the new tax rules, they know how to interoperate them and how to apply them to your specific situation. Everyone filing tax returns is different, more or less dependants, more or less income and from a variety of sources, varied investments, and property all may impact the calculations on your tax return.

My Best advise stick with a professional tax preparer, they will get to know your situation and will have previous years files to remind them about things specific about your return. Be patient and make a list of all the places that will be sending you income slips or T slips. A copy of every slip is also sent to the government so they already know what to expect on your return. There are steep penalties for not reporting income, make sure you include everything. Discuss any changes that you made in your life last year, like marriage, kids, investments these will all impact the calculation of your return.

Take a little time and get it done right, there won't be a reassessment, penalties or audits, if there are; you will have a professional to answer the questions you won't have to go ask the box… You will receive a cheque from the government for the entire refund not a reduced amount like some preparers would like you to take so they can keep the rest as their fee. Please be aware of one thing a Tax Refund isn't a gift, it's your money! Money that you over paid through source deductions. Your entitled to get your money back, all of it…

I can't end here without mentioning those that usually need to pay taxes and don't usually get a refund. The deadline is real, penalties do get added if your late filing your return. It's better to file even if you can't pay the outstanding tax amount, in this case you will be assessed interest on what you owe but you will not get hit with a late filing penalty. Get it done, don't ignore filing and make arrangement regarding how you feel you can pay the outstanding tax.

Comments by: Andy Gubbels andy@padgetthelps.ca