Many people have a level of anxiety when it comes to completing their tax returns and their concerns may be justified. When it comes to tax deductions and tax credits most people aren’t certain about what they can claim.
Yuliya Sivachuk, a professional tax preparer and owner of YS Accounting and Tax Services in Wasaga Beach believes that turning to a professional to prepare your tax return will reduce the stress.
Sivachuk says, “Sometimes people who do their own returns aren’t aware of their eligible credits. A big problem for some businesses is improper bookkeeping. For example, some people will claim something as an asset when it should be claimed as an expense.”
Missed deductions and making mistakes can trigger a Canada Revenue Agency audit. Sivachuk has seen cases where people were flagged by CRA because they hadn’t filed a tax return in 10 years. Sivachuk says, “They’re pleading with us to help because CRA is on their back. If they owe taxes over the past 10 years, there are penalties and interest to pay which can be very costly. If they had sought the advice of a tax professional earlier, they may have avoided that mess.”
Many benefits of hiring a tax professional
It can save money: If a tax preparer finds even one deduction or tax credit that may have been missed, it could easily exceed the fee to have a professional prepare your return. Sivachuk says, “Missing tax credits such as medical expenses, disability tax credits, moving expenses and working from home expenses are little things that can add up to big things.”
It can save time: It can take hours for an average person to figure out their deductions and complete a tax return. Your time is worth money.
A professional can answer questions and resolve issues: It’s very likely that you have some questions about your taxes. Calling the CRA can leave you on hold for a long time, while a tax professional can answer questions immediately.
Tax laws are complicated: Professional tax preparers keep up to date on the annual tax rule changes. A small business proprietor for example may mistakenly claim a deduction twice and then lose the exemption altogether.
Tax planning savings: Tax professionals can offer advice throughout the year on the best tax saving strategies. Sivachuk says, “I advise clients on how to save by taking advantage of the tax laws. For example, using tax deferral options such as an RRSP.
Reduce the risk of an audit: If you are audited or if the CRA starts asking questions you can’t easily answer, a professional tax preparer knows how to deal with that issue. Some people may be required to pay income tax installments, if they aren’t aware or don’t comply, they could be hit with huge penalties and interest at the end of the year.
Previous returns can be reviewed: A tax professional can look at past returns to see if any deductions were missed and if so, amend them for you. The average person could mistakenly over-estimate or under-estimate taxes owed.
Yuliya Sivachuk says, “The best advice is for people to be organized with documents to back up their claims. Tax preparation should not be a haphazard process. It should be taken seriously.”
You may want to consult a professional tax preparer if you are uncertain about your tax returns. It could save you money, time, and give you peace of mind.
If you are looking for ways to reduce your taxes and would like to consult with Yuliya Sivachuk, please call (705)352-9503 or Email: [email protected]
