7 Tax Filing Tips Every Canadian Millennial Should Know, According To A Tax Expert
Here's how to maximize your return.
Tax season is approaching once again, folks. It's been a doozy of a year, and wherever you're at, a little extra money in the bank is always a good thing. Though filing taxes seems a daunting task, it's best not to procrastinate so you can maximize your return.
You don't have to do it alone, and with a trusted expert — like an H&R Block Tax Expert— by your side, filing your taxes could be a lot easier.
While you may be harbouring some (very valid) tax-related worries, opting for assistance from a reputable company can reduce unnecessary stress. With H&R Block, a company that’s been a tax-season saviour for nearly 60 years, you’ll have access to a large network of reliable experts.
They’re pros when it comes to the tax system, and each Tax Expert gets annual training at H&R Block's Tax Academy. This ensures that they’re up to speed on the Canadian tax code and ready to maximize your refund.
Before you give H&R Block a shout, check out these tax-filing tips and tricks (straight from the source).
Get Even More Money Back By Claiming Your WFH Expenses
Many Canadians have enjoyed the freedom and flexibility of remote work, but did you know there's a big financial advantage to WFH life as well? By claiming your home-office expenses, you can get even more money back than you might have thought.
There are two different ways to go about getting this refund. There's a flat-rate option, which allows you to get up to $500 back (or $2 for every day you worked from home, up to 250 days).
On the other hand, you might want to claim the specific amount you paid for your eligible WFH expenses using a more detailed method. Keep in mind that you'll need to provide supporting documents, including receipts and employer-signed forms, to back up your claim.
Lower Your Taxes This Year By Repaying Your COVID-19 Benefits
Depending on your line of work and specific situation, you might have received a federal COVID-19 support benefit, like the Canada Recovery Benefit (CRB).
If, after receiving this money, you realized that you were ineligible, you have until January 1, 2023, to repay the funds.
The good news here is that you can use your repayments to lower the taxes you owe when you file your return.
Get Your Refund ASAP
The early bird gets the worm. Your parents and teachers likely shared this idiom with you when you were younger, and there's definitely some truth to it.
The sooner you file your taxes, the sooner you'll get your refund. That money you get back could earn interest if you invest it, so filing taxes ASAP means maximizing your returns.
File early — the CRA opened on Monday, February 21. In the coming weeks and days, be sure that you've got all of the information you need to set yourself up for a stress-free tax season.
Get Your Ducks In A Row & Track Those Expenses
Okay, tracking your receipts for expenses should be an ongoing habit. That said, you can certainly take some time to round up those receipts now. It's not too late.
Take photos of your receipts and save them to your device (just in case those paper copies get lost or faded). If you're self-employed, you can even claim eligible expenses like cell phones and office supplies.
Big-ticket items like computers or car payments can be partially claimed as depreciation over a set period of time. Talk to an H&R Block Tax Expert to see what this means for you.
You Might Be Entitled To More Benefits & Deductions Than You Think
Many millennials don't claim the benefits and deductions that they're entitled to. Don't make this mistake — consult with tax experts who can tell you about all the deductions and benefits that might apply to your claim.
For example, if you moved last year (as many have throughout the pandemic), you might be able to claim moving expenses. If you bought personal protective equipment (PPE) for your job, you can claim the cost of it (just include your employer-certified T2200 form).
And whatever you contribute to your RRSP reduces your taxable income (while helping you achieve your financial goals). Definitely worthwhile!
Figure Out If The CWB Benefit Applies To You
The Canada workers benefit (CWB), a refundable tax credit for low-income households, has new rules that might apply to you now (even if they didn't in the past).
The eligible income level has increased — for individuals, it's up to $32,244 and for households, up to $42,197. You might just qualify this time around.
Plus, the new “secondary-earner exemption” means that your partner's income might not actually impact your eligibility for CWB (yay!).
Heads-Up: It's Way Too Easy To Miss Or Give The Wrong Info
H&R Block's Tax Experts have found that people often report income twice or miss it entirely. Be sure to report both your main income and any additional cash you earned on the side. Even tips are taxable!
There are hefty fines for people who file their taxable income incorrectly. Omitting any relevant information on your return can cost you a lot down the road.
Bottom line: include anything and everything. Too much info is better than not enough.
Whether you're a student, running a small business, getting paid in USD or working a few side gigs, H&R Block's Tax Experts can help you through your tax-return journey.
Procrastinators and homebodies will be happy to hear that there are a bunch of ways to go about filing taxes with H&R Block. You can file in person or drop off at an office location near you, upload your tax forms and have a Tax Expert prepare them remotely, or do it all yourself online.
The company’s got nearly 60 years behind it, with pros who know all the ins and outs of Canadian taxes. They’ll find the right service for your specific needs, whether that's tax prep, audit assistance or something in between.
That means you can breathe a little easier this tax season.