This year, filing taxes is going to be quite a bit more complicated for Canadians than it usually is. Whether you’re filing your personal income tax, or you’re filing for a business, the 2020 tax season was rife with changes. Here are some of the things that Manitobans might have to consider this year that they didn’t in previous years:
|Personal Income Tax||Business Income Tax|
There’s a lot more that we haven’t listed there, from the changes to the CPP, to the changes of capital cost allowance on zero-emission vehicles. There are always a lot of differences between any two tax seasons – and those are just on the federal government’s side of things.
Most Canadians have more complex taxes this year for reasons outside of federal government changes. Our work schedules have been more erratic. Many of us have lost jobs. Many others have found new work. Some of us have had to sell things in order to keep our finances afloat.
2020 was a complicated year.
We have three recommendations to make the tax season easier for you:
If you’re reading this – start working on your taxes. The earlier you start, the easier it is to plan your finances. You’ll also get a load off of your mind – when you think about having to do your taxes, but you don’t get started, you’re causing yourself unnecessary stress as you imagine the work you’ll have to do.
Another big upside to starting early – you’ll be able to file early, and if you’re getting a refund, that means money in your pocket that much sooner.
Use free tax software
For those of you who only have very basic taxes to do – employment income and not much else – there’s free tax software that can help you find tax benefits at a glance, and file without too much effort. This free software might not give you the detailed breakdown of benefits that a professional accountant might be able to, but for very simple returns it’s often a perfectly suitable way to do your taxes.
Hire an accountant
If ever there was a year to get help with your tax returns, this is the one. Generally, the more complex your sources of income are, the more complex your tax return will be. From various government benefits, to assets having been sold and purchased in order to keep business running as smoothly as possible, there are going to be a lot of complicated tax returns this year.
There are those of you who are reading this who know that your tax return is going to be much more complicated this year. Save yourself the stress and time – time is money, after all. Get Compass Accounting to help you with your return, and take a load off of your mind.