Take the stress out of tax time

Tax time is busy and stressful for everyone but there are a few ways you can make it easier and make your accountant love you.

1. Don’t be late! This one is obvious, but procrastination is not your friend when it comes to taxes. CRA charges significant penalties and interest if you file late and owe tax. Even if you don’t owe tax, having your refund in your hands – where you can use it as you need or invest it and earn some money on it – is better than leaving it with CRA. Also, any benefits you are entitled to – like the GST refund or the Canada Child Benefit or Guaranteed Income Supplement – will only be paid to you if you file your return.
2. Contact your accountant early. Your accountant is likely going to be very busy during tax season so the sooner you contact them the better. A quick email or phone call to ask your accountant what information they want, and how they want it (i.e. paper copies, electronic, etc.) is all that you need to do to get the ball rolling. Many accountants these days are going paperless, so they may want your documentation sent to them electronically and they will transmit your tax return back to you the same way.
3. Be organized. Your accountant probably does not want you to turn up with a shoebox of receipts. Have all of your information neatly organized and summarized and ask your accountant what they want. Your accountant may not need to see copies of everything; they will let you know what they need. A few more tips along these lines:
   • Have one “spot” (a drawer or a file folder) to keep all of your tax information is a great idea. Throughout the year you may gather tax receipts (like donations and medical), your T4 and other slips, etc. Simply drop them into your “spot” as you get them and your taxes will be a breeze! Never again will you run around looking for receipts a year later.
   • Group all of your receipts together, like donations and RRSP and medical. Your accountant may prefer that you send them an itemized list rather than each donation slip, but make sure you keep them in case your accountant or CRA asks to see them.
   • If you have a lot of prescription drug receipts, most pharmacies will provide you with an annual list of them for your taxes free of charge.
   • Keep each year’s tax documentation together. Your accountant may want to see last year’s tax return and your notice of assessment as there is sometimes information on there that may be relevant to the current year’s return. Have it handy in case your accountant asks for it.