Filing your taxes is probably the last thought to cross your mind at the moment, but there are so many things you can start doing now that will positively impact your tax return next year. Here’s a list of ways you can help boost next year’s tax return and get a bigger a refund.
1. Tracking Deductions
There are several deductions and credits available that can help maximum your refund, and its worth the time and effort to find out which of these you can take advantage of. The simplest way to keep track of these deductions is to prepare a file, label it accordingly, and use it store records of deductions such as mileage, equipment, education, supplies, and others.
2. RRSP Contributions
The RRSP deadline is usually around March 1, and you can find how much you’re allowed to contribute on your Notice of Assessment. When you contribute to your RRSP, you’ll be able to receive a tax refund, that you can later sue for things like contributing to your TFSA or paying down an outstanding debt.
3. Student Loan Interest
There is a silver lining to all that tuition fees you’re paying – you can claim the interest that you are charged on your student loan.
4. Charitable Donations
As long as the charity is registered, your charitable donations are tax deductible. You’ll have to make sure that the receipts have particular details on them, such as registration number, name, and address amongst others.
5. Moving Expenses
If you had to move for a new job or to take courses as a full-time student, then you may be eligible to deduct your moving expenses from your tax claim. In order to qualify for this deduction, your move must have been at least 40 kilometres closer to your new job or school.