Income Tax Filing Scarborough

Top 4 Tips to Save Big in Income Tax

In the modern-day governance, taxes and that too specifically, Income Tax is a necessary evil. It is only for these taxes that we are enjoying so many facilities that we take for granted. But somehow, there are times when the income tax filings and returns haunt people. The main reason is that we are no expert in finances and that is why we need help of people who have their way around the income tax and help us save our hard-earned money. There are several experienced CAs and income tax filing services in Scarborough that can help you out.

So, if you have landed up at this post, chances are there that you are looking for ways to save a bit on income tax. And don’t worry, we won’t disappoint you. We will tell you some amazing and all legal tips to lower down your taxes.

1 Be punctual when it comes to tax returns

Though filing the returns on time won’t decrease the liability, but surely it saves you from all the penalties and interest. In case you miss the date of tax returns, you are levied with certain penalties. Apart from this, the interests charged are really huge. According to income tax experts, if you have to take a bank loan to file the income tax returns, just do it as the interest rates charged on income tax is much higher as compared to the loan rates.

2 Go for tax efficient accounts

Well in case the year has been good on you and you have some extra money in your hands, invest the amount in those accounts where you have to pay least taxes. You can go for RRSP accounts as you get tax deductions from there. You should also opt for TFSA to your maximum capability as there is no tax on the earnings.

3 Split the income

Splitting the income and sharing the tax burden along with the family members is another great way to save taxes. Canada offers its senior citizens various pensions schemes including RRIF and CPP. When you split these schemes with your spouse, the overall taxable income reduces. You can also go for prescribed rate loan as well.

4 Don’t forget the tax-free perks at work

Tax free perks are something everybody knows about but don’t utilise them to their maximum affect. There are certain perks that don’t include any additional tax. These include RRSP and other pension schemes where the employer also has to contribute. In house fitness facilities, merchandise discounts and several other benefits.

In case you are still scratching your head and fussing over the tax returns, it is the time to leave the matter in the hands of expert. Hire the services of Z Rahman Professional Corporation, Chartered Professional Accountants who are professional income tax filing services in Scarborough. So, contact them today and leave all the hassles to them.