Tax Time 2016 – You Don’t Have to Dread It!

income tax time 2016

Yup it’s that dreaded time of year again, but it doesn’t have to be. In fact, it may be a way for you to save some substantial money and certainly learn a lot by doing your own income tax (or DIY taxes).

Just recently I was listening to some friends of mine talking about how they go to get their taxes done by someone else. As they put it, a professional!

Both cases were actually quite simple in terms of income tax preparation because neither of them had any¬†fancy deductions. They had their standard T4 income slips, one didn’t even own a car or house simply a rental expense and so forth. However, what really got to me was the one friend mentioned going to an H&R Block and paid about¬†$50 only to find out they had no return at all in fact owed a small amount of money; YIKES! While the other spent over $2000 at an accountant and did receive a return but marginally. Certainly not enough to offset the two thousand dollars they had spent.

Paying that much just blew my mind as I could think of several ways to be spending that type of money including simply going on a trip to Maya Riviera Mexico at this time of year would be awesome!! See I’ve been doing my taxes before I technically even had any of my own to do. I started to learn how back in the days of my high-school when we didn’t even have computers but rather used pen and paper method with those lovely income tax booklets that you would pick up from Canada Post.

What really got to me though was she had mentioned to me that they have been doing it this way for decades now. DECADES?? Can you do some simple math here? Umm, $2000 times by say twenty (20) years equals how much … yup $40,000!!

My ears began to ring and my jaw dropped (I’m sure she saw that) and I started to drift into my own lala land as I no longer could hear¬†her speak of doing their family income taxes but rather all the things that could have been done¬†with $40,000 or more that¬†they’ve been spending on fees for having an accountant do their simple income tax preparations. For starters if they had saved that money, they could have been earning interest and compounding that to earn interest on their interest and that would be a very nice little savings. But instead, POOF!!

Myths about filing your own income tax

I think the first myth is that some people just believe you can’t file your own income taxes. Many people believe their return must be completed and filed¬†by someone else, even in the very simple situations. OH if they only knew!

Others of course would like that instant gratification that comes with having Cash Back immediately yet again, do not realize when you file your own tax return you can have a refund¬†in¬†as few as 8 days! Now really, I think you can wait eight more days, don’t you?

In fact if you have all the forms you need you could start filing as early as the end of February or early March. Beating the rush by almost a month in advance.

Did you also know that there is a completely FREE version of Turbo Tax online? So there are no excuses that you don’t have the funds to purchase the program. This version is ALL NEW and ideal for simple returns, especially great for students and seniors.

Cost to you online? ZERO now how does that sound for some savings!!

Now let me add here that obviously if you have a situation that you don’t feel comfortable handling, then by all means in that particular year feel free to hire someone to complete your return but after that year has passed, I urge you to¬†research Doing Your Own Income Taxes.

If¬†your return is¬†a straight forward¬†return consider doing it yourself. Now I mentioned I had experience with tax returns however I would like to state with programs like Intuit Turbo Tax Canada you do not require any¬†prior knowledge at all as the program leads your through your return Step by Step and with instant online filing you will have your refund within no time at all!! In fact as little as a return in 8 days. It’s never been easier!

step by step income tax

With Turbo Tax your return is done in 4 Easy Steps:

  1. enter your personal info
  2. enter your tax slips
  3. review your return
  4. file with confidence with CRA’s NETFILE service

While doing your own tax return you can learn a lot

You should always be fully aware of your own tax situation, whether you want to file your own or you plan to hire someone else to complete your return. You and only YOU will know your situation best.

Too many people throw everything together and then hand it over to their accountant, but don’t even understand what they are handing over. By being fully informed (or as much as possible) you may be able to save yourself time, money and trouble down the road.

Plus, you may even decide to file your own return if you understand your tax situation completely!

You may be able to save money!

With simple tax software like Turbo Tax you may be able to complete your income tax return in a very affordable way. Saving anywhere from $50 to $2000 or more each year! My friends above, could easily have saved themselves up to $1900 each tax year and it would hardly have taken any time at all. Now what could you do with that money alone, not including any tax refund you may be entitled too?? I know I could think of several things that come to mind straight away.

Beating tax time doesn’t need to be a dreadful experience. With Turbo Tax everything is at your fingertips and easy step by step instructions have you covered. So what are you waiting for? YOU GOT THIS¬†!!

TurboTax Software

Link to all your tax software needs including FREE Online, personal, and business versions.