Around tax time, the exaggerations are everywhere– from TV to comic strips, there are many depictions of a hapless taxpayer poring over a mess of documents. It’s fun to have a laugh, but the true nature of a tax return should not require a mountain of receipts and invoices. Read on for Liu & Associates summarized list of which documents you should be saving for your yearly income tax return.
The basics: With any return, it is essential you have easy access to the SIN numbers and income amounts (T4 slips) of you and your family. Educational expenses and tax receipts should also be handy, as well as any business income records.
Investments: Keep all documents pertaining to rental property income, retirement fund contributions and any capital earned due to savings or investments. All of these can affect both your income tax owed and the deductible.
Receipts: The most commonly cited item to save, but what receipts are actually eligible for tax deductions? Medical and childcare expenses often qualify as deductibles. If you have expenses through work and you are either unreimbursed by your employer or self-employed: you may be sitting on a goldmine of tax credits.
Past returns: It is always smart to keep your personal tax records for up to three years. At tax time, you or a Liu & Associates tax expert can review your past returns for accuracy and any overlooked or carried-over deductibles.
Charitable donations: Any tax receipts for any eligible charitable donations are an easy way to claim a tax credit. Be aware of the minimum and maximum amounts.
The above list is just a brief overview of the necessary documents for filing a tax return. Work, household and lifestyle variations can all impact the details of your yearly return. Consult CRA guidelines or Liu & Associates to ensure you meet all of your requirements. Our experts can ensure your complex financial realities are taken care of completely at tax time.