Tax returns: can be complicated

Special to the Echo

Special to the Echo

What is the difference between refundable tax credits and non-refundable tax credits? What are the eligible deductions for self-employed workers? It isn’t always easy to answer all these questions and to know all the programs and deductions which could help you save a lot of money.

Tax credits

Every year thousands of dollars are lost by taxpayers through their ignorance of the system. Never rely on the government to tell you your rights as far as tax credits are concerned; this is your responsibility, wherein lies the importance of knowing basic tax law.

Tax return software

There is a range of accounting software available, but know that they are not miracle-workers and that they won’t ask you about your personal situation. For example, you are eligible for certain deductions if you have children, if they are registered for sporting activities, if you have a physical handicap, if you have moved for work reasons, and the list goes on. This type of software is good, however, for taxpayers whose tax situations are relatively simple, such as single adults who have no assets or social assistance recipients and seniors without pension funds

Consult an expert

The part of the tax system involving personal income tax is becoming increasingly complex and includes many special features, hence the attraction of working with a specialist in this area. When the time comes to consult a professional, expect him or her to ask you pertinent questions regarding your financial situation so that they can get the best return possible for you.