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Found Money: How Filing an Accurate T1 Pays Off

Posted: April 06, 2018 By: Evelyn Jacks
Posted in: Strategic Thinking, tax preparation, Tax Planning, Financial Literacy, Financial Planning, CRA, knowledge bureau, Canada Revenue Agency, tax returns, Evelyn Jacks, tax filing, tax audit, tax courses, tax advisor, tax education, T4, online education, tax receipts, proof of income, Personal Net Worth statement, T1 tax returns

For many Canadians filing a tax return is the most important financial transaction of the year. Getting the best tax refund is important: not only will it put more of the money you previously earned back in your own pocket, your refund can make at least some of your cash flow and retirement worries go away. Here’s how:

The average tax refund last year was $1,735 or about $145 a month. If that money was going into an RRSP, over a 40-year period at an average return of 5 percent, that tax refund would grow to $220,067. That’s a solid nest egg!

The tax return is also your avenue to refundable tax credits – tax free money - which include the following:

  1. The GST/HST Credit of $284 per adult and $149 per child, offered by government to offset the cost of paying tax at the till.
  2. The Canada Child Benefit of up to $6,496 per child under six (that’s $541.33 per month) and $5,481 for each child between six and seven (that’s $456.75 per month).
  3. The Working Income Tax Benefit of up to $1,028 for those who have a minimum earned income of $3,000 (full-time students who don’t have an eligible dependant are amongst those who don’t qualify).
  4. The Eligible Educator School Supply Tax Credit of up to $1,000 in qualifying expenses – 15 percent is then refundable.
  5. Various Provincial refundable tax credits

The money moral: filing a timely, accurate T1 is about how much of your hard-earned dollars you get to keep – for now and for peace of mind in your financial future.

Additional educational resources: Interested in learning more about how to help others prepare accurate T1 and get a jump on retirement planning? Try Knowledge Bureau’s Distinguished Financial Advisor – Tax Services Specialist or Master Financial Advisor – Retirement and Estate Service Specialist designations. Register before June 15 to save on tuition for the summer session. Courses are available online 24/7 with continuous intake, so you can start anytime!

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