2022 April Update
It’s late in April and you might be down to the wire when it comes to getting those personal income taxes filed.
Why would you want to file your income tax return? Well, if you’re like Sandi, who filed back in January or something ridiculous like that, it’s because you think it’s a really good time. If you’re like normal people, you might need a better incentive. Here are a few on our list:
Income tested benefits
If you are eligible for income tested benefits like a GST rebate, Canada Child Benefit, Trillium Benefit, Old Age Security, and much more, filing your income taxes helps get those government cheques in your bank account.
RRSP Contribution Room
RRSPs are a simple, and well known tax deduction, tax deferral, and retirement income strategy. Sometimes people think that there’s something a bit… suspicious…. about them. Or unsexy. Or lacking in imagination. As we’ve said time and time again: if you’re looking for sexy, try somewhere other than your retirement plan.
Boring, steady, tried-and-true, your RRSP accounts are great vehicles to reduce your income taxes, maximize your investment dollars, and plan for one of those retirements you see in commercials, with all those boats and sunsets and whatnot.
Qualifying for Mortgages
If you’re looking for some financing, your finance company is looking for your tax return. Filing on time, with all your ducks neatly lined up in a row, and all that paperwork cleanly organized, makes your lender think you’ve really got it going on. It’s a simple way to look like a really good bet.
Getting Your Money Back
If you’ve overpaid your income taxes, you’ve made our governments an interest-free loan. Those dollars are better off in your account, being used to create the life you want. The earlier you file, the faster you’ll get back the loan you didn’t mean to make.
Making your Financial Planning Team’s Life Easier…
Okay, this is an “us” reason, not a “you” reason. But if you need support and advice to determine how you’re going to run your 2022 income and expenses on a personal or even business level, getting those tax filings done on time or even early means that your finance team will have the information they need to help you make great decisions earlier and faster – which leaves you far more time to do better things with your life.
Tax work has become increasingly intense over the last few years and the labour shortage that is impacting Canadian businesses is impacting everyone, including your friendly neighbourhood accountants. While you might be annoyed at having to gather persnickety details, give a quick thought to the people who have to manage those details for you, and keep you on the right side of Canada Revenue Agency and the IRS (if you’re a US citizen). They’re busy, and not in a fun way. Toss them a few cookies, or a cup of coffee, with those tax slips. They’ll be grateful.
We’ve been reading through Budget 2022 and all the articles that have been released from accountants, thought leaders, and more. Once we have that sorted in our brains, we’ll be sharing our summary thoughts with you – look for this in next month’s newsletter!
Kathryn will be taking a holiday between May 11th and 15th. Sandi will be out of the office on May 16th and 17th, attending the Family Enterprise Advisor program. We will all be taking the day off on Monday May 23rd, to celebrate Queen Victoria’s birthday for some reason (we’re not complaining!).
“Free” Fridays remain booked permanently in our calendars. These days are free to us at Spring in the sense that they are our opportunity to work on becoming better planners, whether through collaboration and discussion, education, research, or even a little down time. It’s been a regular practice since the summer of 2017, and we will continue to set aside the time to become better versions of ourselves every week. Even 1% better is solidly worth it, because we know that will be reflected in the work we do for you.
Planning News Digest:
Bank of Canada announces 0.5% rate increase, the first oversized hike in decades. The move raises the central bank’s key rate to 1 per cent as it looks to combat runaway inflation in Canada; the BoC also says it will begin shrinking its enormous holdings of government bonds. Read more here.
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