If you are using paid tax preparation services in Canada, pick the right one!
Holidays season is in full swing and Year 2019 is coming to an end in few days. Soon you will have to file your income tax returns for 2019. We are giving some Tips for end-of-year individual tax preparation whether you are using a professional tax services or filing it yourself.
Pick the right tax preparation service
If you are using paid tax preparation services in Canada, pick the right one!
- You should avoid the tax preparers who advertise guaranteed refunds! You may get the refund after few days or weeks based on the tax return filed but keep in mind when CRA run sweeps in third and fourth quarter of the year, they issue Notice of Reassessments and take these refunds back if you are not eligible for the one. So be careful when your tax preparer guarantees you more refund than others. Think twice!
- Seasonal tax preparers is a very common phenomenon in the Canada and unfortunately some see it as a quick money making season. Simply buying a software and run a basic tax preparation course online and they are ready for tax preparation business. Most of the time, they are able to handle basic tax returns successfully, however, problem comes when they attempt to make tax returns which need an expert knowledge of tax rules and laws. So, choose wisely depending on your situation.
- Expertise and Reputation of tax preparer also plays very important role. Having a Chartered Accountant or a CPA preparing your return is beneficial than the Non-CPAs. You have to consider the costs involved in return preparation while choosing this. In Canada one does not have to be a CPA to perform tax preparation service. On the other hand, mechanical processing of tax returns does not make anyone an authority on the individual or personal taxes.
Review your Personal Tax File and Identify Changes
Review your previous year Notice of Assessment and identify the changes including marital status changes, residency status of you or your spouse, legal name changes or address change. Do inform your tax preparer of these changes so that (s)he can consider these while preparing your tax return.
Organize your Paperwork
Organize your receipts and paperwork before going to your tax preparer, you can ask for required papers before scheduling a meeting.
Do Bookkeeping for your Unincorporated Business
If you have self-employment income or business / professional income (from unincorporated business) get the bookkeeping done. You can do it yourself, hire a part-time bookkeeper or ask your tax preparer if (s)he provides these services.
Get help for special situations
If you have special situation like sale of principle residence, capital gains or you are a Canadian Snowbird, its better to always seek the professional help.
Review your tax return before you sign it!
Always review your tax return before you sign it even if it is prepared by a professional tax preparer. It is your responsibility that a correct return is filed. Read: Why you should read your tax return before you sign it.
If you are looking for Individual tax preparation services in Toronto (or Greater Toronto Area, Maroof HS CPA Professional Corporation offers reliable tax services in Canada. If you have complicated tax situation or subject to both US and Canadian taxes, you can get a one-stop service.
Your tax return is one of the best tools to get an overall picture of your financial condition. You can easily form an understanding of your income and expenses by looking at the return and supporting documents. You can find out about your loans, debts and other nuances that affect your revenue or expenses.
Your tax return is a critical source of financial information that can help you make informed business decisions. So always read first, and then sign your tax return no matter which firm or CPA prepares it.
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