Have you ever wondered about the benefits of using a professional tax preparer in Canada?
We asked the same question to a highly rated local company and received the following response:
Tax laws can be complicated and change frequently. Your unique situation also changes year to year. Using a professional tax consultant ensures you pay as little tax as possible. They can dig into your financial situation and are trained to find all the applicable credits available and ensure fast accurate filing.
Over the years, Canada Revenue Agency (CRA) has changed the way they process, monitor and verify the accuracy of the individual returns. They continue to improve their ability to automatically process and validate tax returns as they are filed. They have also improved their ability to verify if a taxpayer has included all pertinent financial transactions in their annual tax return. It is more important than ever that you include all income, deductions, and credits applicable to your unique situation. A tax professional will work with you to ensure this happens.
A tax professional will also review:
- Your revolving life situation, which results in new or different credits/deductions. Marital status, dependants, even taking care of your parents, can provide opportunities to minimize your tax liability.
- Programs such as the Home Renovation Tax Credit and Pension Income Splitting must be calculated and reported correctly.
- Which spouse should claim the Child and Children’s Fitness Tax Credit
- Your ability to split Capital Gains/Losses and other Investment Income with your spouse.
- Fees paid to your tax professional are also considered tax deductible.
- They might show how you can donate “in kind” to charity. You should consider donating appreciated securities directly to your charity of choice and eliminating all tax on any accrued capital gains.
- You will be encouraged avoid getting a tax refund. If you get a large tax refund each year, consider applying for a reduction of tax at source using CRA Form T1213.
Establishing a relationship with a financial planner and tax professional means that you will have a team looking out for money saving opportunities that apply to you. You will benefit from their specialized skills and have the ability to discuss life changes to determine how your financial and tax situation may be affected.
