The tax deadline is fast approaching, and because April 30th falls on a weekend this year, Canadians have until Monday, May 2nd to file. For those who haven’t filed yet, there are some pretty compelling reasons to do so. And, so far this year, we’ve seen approximately three-quarters of Canadians receive a tax refund; and we’ve also seen a slightly higher average refund amount this year over last.
When you’re filing your taxes, here are five things to keep in mind to ensure you are maximizing your refund
File your taxes – and file them on time!
This seems like an easy one, but you will not get a refund if you don’t file. And if you don’t file on time, you could see a delay in some of your benefits, such as your GST/HST payment, Canada Child Benefit or the Climate Action Incentive Payment – all money that should be in your pocket.
Contribute to your RRSPs
Since you can deduct your contribution from your taxable income, it essentially makes your taxable income lower, therefore lowering how much ‘income’ tax you pay on your income.
There are lots of components that come into play when calculating how much you can contribute to an RRSP annually. So, if you have the room, you can contribute up to 18% of your income annually. This means, if you earn $95,000 per year, you can contribute up to $17,100 to an RRSP, and then would only be taxed on an income of $77,900.
Your notice of assessment from your previous tax return will indicate your contribution space. Make sure you don’t overcontribute, as there may be penalties if you do.
This year, low-income workers can apply to the Canada Workers Benefit, which brings in a refundable amount of up to $1,381 for individuals with an income below $24,573.
Claim all available non-refundable tax credits
This way you can offset any money owed and get that amount as low as possible.
Don’t forget about deductions
These include childcare expenses, home office expenses and moving expenses if they were for employment purposes.
There are many ways to file your taxes, including filing on your own with tax software, or get support from a tax expert either in an office, by dropping off your documentation or uploading your documents from home.