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NEWSLETTER
2009-12-01
Can you do your own Taxes
Can you do your tax return yourself!
The answer to the this question depends on what do you mean by “do yourself”
If you mean fill out the tax forms, of course you can fill out forms and by doing that you will know your tax bill, which can lead you to make smart decisions about your finances. Seeing the magic of RRSPs on you tax bottom line will convince you how RRSP make sense.
Computer softwares like Tax Wiz, Quick Tax etc. also offer easier solutions; these programs take you through the interview process to complete your return.
The Canada Revenue Agency provide general guide to filling out the tax return. This guide is comprehensive enough to get you through most of the form. Check out their website as well for information and other free publications including the general guide.
However, If you mean ‘Can I figure out how to legitimately pay as little income tax as possible?’
If that is the case, it will not be wise to do your taxes, unless you know all the tax laws and the sprit behind the law, Media has created a general perception that people often focus on the mechanics of filing the income tax return. Doing your taxes is not just the form filling but it keeps in its perspective the short and long term strategies to optimize your overall financial health, minimizing your taxes, and increase in your wealth, while improving your cash flow.
If you have all the tools mentioned above, the determination, will and motivation beside time to commit to long term goals that make financial achievement relevant? It would make a lot of sense to contact a professional accountant and professional financial planner.
If you are a salaried employee with no investment income, dependents, you might do it yourself. However, a tax professional might still shave some taxes off your tax return.
Tax is not merely filling forms any more; there may be lot of hoops to jump to get to optimum reduction in final tax liability. Often it takes a team of professionals to master one’s overall financial picture. If your situation is more complex than example above, you may be missing more tax saving opportunities.
Last but not the least, your mistakes on your tax returns could be costly if you owe additional taxes, interest compounded on that amount and perhaps penalties too. Professional accountants make mistakes too – but far less often than novice.
Good luck with your taxes.
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