Here's How To Set Yourself Up For A Bigger Tax Return In 2023, According To An Expert

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Vittoratos has recommended looking up the tax return changes that the government makes, which are typically done in March or November.

"Many of these changes become applicable as of the date of the announcement; therefore, you can start benefitting from these changes immediately," said Vittoratos.

"That means that it's not too late to claim some of these amounts that were announced."

So, always be sure to read that fine print on new economic announcements because you might be able to get something from them immediately.

Get organized

While most people will submit their taxes for 2022 to Canada Revenue Agency in April 2023, Vittoratos suggested starting early.

"The production of your tax return is not [a] one-time-a-year thing," said the tax expert.

"Create a folder from now for 2023 where any document that relates to your tax return is put in."

Getting organized will go a long way in ensuring that you have everything ready for your tax return.

"The biggest reason for missed credits and claims is taxpayers not archiving their receipts properly, and missing out on amounts they're entitled to," Vittoratos said.

Keep receipts

Whether it's money given to charitable causes or medical expenses, it's important to keep receipts so you can get some money back.

If you don't have copies of any receipts, Vittoratos recommended reaching out and getting them for your files now.

Donate now

If you're in a charitable mood, make sure you donate before the year ends so you can benefit from the donations tax credit.

"The credit itself can be very beneficial tax-wise," explained Vittoratos. "On the federal side, you get a 15% credit for the first $200 you donate and 29% to 33% (depending on your income) for any donations you make above $200."

Sell any losing investments

If you sell off any investments in your taxable accounts that are losing value, you can create a "capital loss" which you can use to offset gains you may have gotten elsewhere.

This means a lower reported capital income and, therefore, lower taxes.

"However, there are stipulations," said Vittoratos.

"When you sell these losing investments, you and your spouse have to wait 30 calendar days before buying the same investments in order to create the capital loss."

So, if you do want to buy back in, just be sure to wait more than those 30 days.