Tax season made simple

It’s that time of year again – tax time. Personally, I enjoy this annual task. Either I get a chunk of money back or I get a lesson in what went wrong with my finances last year. Sure, one of those is more fun than the other, but they are both valuable. Below is some information that you need to consider before you file your tax return.

Get organized

There is nothing more frustrating than filing your taxes early and then receiving a slip in the mail a week later that you should have filed as well. You can prevent this by knowing what forms and slips you can expect to receive. For all of us students, we will receive a T2202A, which is for the tuition that we have paid. You may also receive a T4A if you were awarded a scholarship or bursary, a T4 if you were employed at all during the year 2014 or a T5 if you had or have any investments. I like to check my personalized account on the Canada Revenue Agency website (cra-arc.gc.ca) for the list of slips that I will be receiving.

You may also have medical receipts from 2014 that you want to include. If you do, my recommendation is to bring them to a professional and have them check to see if you have met the threshold amount to reduce your income. These receipts could be from out-of-pocket dental expenses, prescription medications or even prescription glasses. You need to have the receipt in order to claim these items.

Determine your approach

Are you financially or technically savvy? It is pretty easy to file your own taxes online, and in most cases, it’s completely free. If this option sounds enticing to you check, out H&R Block at hrblock.ca or Turbo Tax at turbotax.ca. They both have user-friendly software to make filing your taxes online a breeze.

If you have a more complicated situation or want your return immediately, you will want to go to a professional to have them file your taxes for you. If you go to H&R Block you can opt to receive your money right away via a prepaid Visa card or a cheque. H&R Block’s filing fee for students is $39.99, and the company also have a promotion on right now where it will give you a free SPC card for filing your taxes with the company. Be sure to bring a piece of government-issued photo ID and your social insurance number with you before April 30 to get your taxes in on time.

Returns

Now that you have your income tax refund back from the government, put the money to work for you. It is money that you weren’t expecting to get and you can make the most of it by putting it into a Tax Free Savings Account or another investment that will yield high-interest rates. This will create a nice amount of money that you can fall back on in case of a financial struggle or emergency.

Don’t put it off until last minute. Learn to enjoy having your finances assessed and accept any lessons that may come your way. You will be better off in the future for it. When you take care of your money, your money will take care of you.