Your slips are all in, the forms compiled and submitted and you\u2019re waiting for the bottom line.\u00a0 A triumph for those expecting money back, or a nerve-wracking wait for those with a bill \u2013 yes, it\u2019s tax time!\u00a0 If you\u2019re in the category of people who frequently owe money to Canada Revenue Agency, or even if it\u2019s your first time on that side of the balance, read on for some tips on how to deal with your tax debt:<\/p>\n
DO:\u00a0 <\/b>Ask for help filing your return if you feel it\u2019s beyond your paperwork skill-set.\u00a0 If your return is basic and consists of a T4 or two, chances are you could file it yourself without missing out on credits.\u00a0 For people who are self-employed or who have more complex finances, it\u2019s a good idea to have reputable bookkeeper or accountant check over your return to make sure you\u2019re getting all the benefits you may be entitled to.<\/p>\n
DON\u2019T:\u00a0 <\/b>Try to \u201coutsmart\u201d the government by making claims that are uncertain.\u00a0 If you are eligible for certain deductions or credits, by all means use them, but be wary of write offs that seem too good to be true \u2013 they probably are.\u00a0 Recent charitable donation schemes for example, have left many taxpayers with a large bill on their hands.\u00a0 As cautioned above, if you\u2019re unsure \u2013 ask a reputable, qualified professional first.<\/p>\n
DO:\u00a0 <\/b>Look at why there is a balance owing and try to correct this going forward.\u00a0 If there\u2019s more tax due this year because you withdrew from your RRSPs or you have more than one job and aren\u2019t having enough tax withheld at source, make note and either set aside more throughout the year, or better yet ask one of your employers to remit a little more each paycheque.<\/p>\n
DON\u2019T:\u00a0 <\/b>Stop filing altogether because you think you\u2019ll be continually adding to the balance.\u00a0 Not filing returns for a long period of time can result in many other problems, such as a back-log of MSP premiums due, and not receiving Child Tax or even GST benefits that your family may be entitled to.\u00a0 Allowing returns to pile up year after year isn\u2019t likely to help in the long run, and eventually it will probably just mean lost sleep down the road.<\/p>\n
DO:\u00a0 <\/b>File AND pay on time.\u00a0 Balances due must be paid on or before April 30th<\/sup> each year, and unless you or your spouse was self-employed your returns should be filed by then as well.\u00a0 Late returns can mean accumulating interest unnecessarily, as well as fines and penalties.<\/p>\n DON\u2019T:\u00a0 <\/b>Ignore the bill if you owe.\u00a0 Canada Revenue Agency is a powerful creditor and disregarding the balance owing you may have can result in serious collection action such as bank account seizures or even a garnishment of your pay.<\/p>\n DO:\u00a0 <\/b>Be aware that there are two options for dealing with unmanageable tax debt.\u00a0 Both a consumer proposal, or bankruptcy can eliminate or reduce tax debt, more importantly they are the only<\/span> options that can.\u00a0 If you find yourself in a position where the debts are out of hand, speak with a licensed trustee about your situation, they are legally empowered to assist you with Canada Revenue Agency debts.<\/p>\n As the expression goes, two things in life are certain – death and taxes – while we can\u2019t control one, we can certainly help guide the other!<\/p>\n To speak confidentially with a BC Licensed Insolvency Trustee in your area, please contact us<\/a> for a free debt consultation<\/a>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":" Your slips are all in, the forms compiled and submitted and you\u2019re waiting for the bottom line.\u00a0 A triumph for those expecting money back, or a nerve-wracking wait for those with a bill \u2013 yes, it\u2019s tax time!\u00a0 If you\u2019re in the category of people who frequently owe money to Canada Revenue Agency, or even […]<\/p>\n","protected":false},"author":8,"featured_media":6451,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[261],"tags":[38,39,114,37,113,58,35,82,112],"class_list":["post-5050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-free-living","tag-bankruptcy-bc","tag-bankruptcy-trustees","tag-canada-revenue-agency-debt","tag-consumer-proposals","tag-cra-debt","tag-income-tax","tag-sands-associates","tag-tax-debt","tag-taxes"],"acf":[],"yoast_head":"\n