Last Gasp of RRSP Season & Closing in on End of Tax Season

Well folks, we’re in the final few days of RRSP season – that wonderful time of year when you can make that contribution that will get you money back when you file your taxes, or at the very least, reduce the amount of taxes you are made to pay… Officially (according to the Canada Revenue Agency’s web site) it ends at midnight on March 1st, 2011. That’s midnight, this coming Tuesday.

Banks will now be in full swing of trying to meet clients’ needs in getting their contributions done, but if left to now, chances are that you will not be able to get in to see your account manager. Not to fear! If you deal with a major Canadian financial institution, chances are that you have a few other options available to you to help you get your contribution made in time. Telephone banking and Online banking are the other “go to” options. My suggestions at this point is that, if you already have an RRSP set up, and you are an Online Banking client, try making your contribution VIA your home computer. You can always get in to see your account manager AFTER March 1st and have the initial RRSP contribution investment option changed, but at this point you want to get your contribution done ASAP.

Income Tax Season has another couple of months (just – March and April for a filing deadline (for most people) of April 30, 2011. Final slips are generally in the mail and we should see most (if not all) of them by mid-March. Personally, I’m still waiting for two slips, but if I really wanted to, I could file now as both slips will just be deductions that I will be carrying forward into the 2011 Tax year.

I think that I mentioned in my last Income Tax-related blog post that I use a tool called TurboTax (formerly known as QuickTax) – my copy is all loaded up and I have almost all of my data already entered. With the exception of the year I moved overseas and the following year (when I moved back) I have used this tool. There were even a couple of years where I had a home-based business, and it was still easy to use and quick to process. In my humble opinion, if you have a home computer, this is the way to go!

What will my refund money be spent on…? Well, a couple of things. I’m going to set aside a few hundred just to spend on me. A Feng Shui Consultation (with Terri Perrin from the Fine Art of Intention Feng Shui) for the outside of my home, some Hypnotherapy and some private yoga lessons are on my “fun spending” list. The rest will be responsibly allocated to my VISA card and my line of credit.

With love across the waters,

Income Tax Season is Open

Sort of feels like duck hunting season, except we are the ducks, right?

January through March in Canada brings the joys of receiving. Receiving T4 slips, T2202A slips, RRSP contribution slips, Interest Income slips and so on and so on.

I’ve received a couple of the ones I am expecting and am still waiting on the rest. In the interim, though, I went to Costco this week (I like Costco – not like I love Lee Valley Tools though) and bought myself a copy of TurboTax (which used to be called QuickTax) and is made by the same company that created my favourite accounting software, Quicken.

Armed with what little paperwork I have, I started the process. Install the software, update the personal information and start making a list of what slips I think I am still getting. And when I think I am getting them. A couple of phone calls to confirm details, and I should be able to complete my return and eFile it somewhere around the end of February, all things considered.

In the interim, though, I am left contemplating what others do at tax season. Some go to H&R block and have their taxes completed and a cheque issued right away (personally I would rather wait a few weeks and get ALL of my money back, but that’s me.) Others go to their banks and get tax planning advice and update their RRSP and investment plans. Others rely on their accountants to complete their taxes for them.

If you have a little time and the inclination, try going to the Canada Revenue Agency’s website and take a look around – the My Account section (once you have access) will provide you with a lot of great information. What I love about this section is that it provided me with information from previous years that I hadn’t been keeping tabs of.

If you haven’t already started the process, go to your financial institution and get a little advice – a financial review BEFORE you start your taxes could let you know that you qualify for an RRSP loan. A financial review is free AND could save you some money. Hey – it could even earn you some extra money!

With love across the waters,