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March 06, 2022

Getting your taxes ready to go

Everywhere you look there are gentle reminders that the income tax deadline is drawing near.

For instance, many postal outlets have the T1 General Tax Forms and Guides available to pick up and income tax preparers are busy advertising their services.

But before you get started, Canada Revenue Agency (CRA) offers some helpful tips to get you off on the right foot this year.

First of all CRA suggests to plan ahead by registering online for My Account which enables you to view or change your return, check your benefit and credit payments and your RRSP limit, set up a direct deposit and track your refund and more.

Make sure you file your tax return on time to avoid any late filing penalties and fees. The deadline for filing your personal 2012 income tax is April 30, 2013.

Ways to save money and receive a tax break include a Tax Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). With a TFSA, interest, dividends and capital gains earned on investments are not subject to tax. Any contributions to your RRSP are tax deductible and any income you earn in your RRSP accumulates tax-free as long as the funds remain in the plan.

Make sure you keep all your receipts. Some donations you have made may qualify for a charitable tax credit.

Other things to keep in mind are any eligible sports or activities in which your children participate; if you are a caregiver for a dependent with a mental or physical impairment; if you were a student in 2012 you may be able to claim some of the expenses like tuition, books and interest on your student loan; and you may also be able to save by claiming the cost of your transit passes.

You owe it to yourself to find out more information on how you can save on your income tax return.

By Donna Donaldson, MSN Money

Have you started thinking about your income tax return yet? Do you prepare your own by hand, do it online or with a program, or use a tax preparation service or accountant?





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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

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The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...