Filing your taxes: ‘Knowing is half the battle’

The 1980’s cartoon G.I. Joe episodes ended with a public service announcement that “knowing is half the battle.”

Whether you recently filed, are spending your refund or moaning and groaning about not getting a refund, this is what you should know about your income taxes.

“If you want to change the outcome (of your income tax returns) you have to do the planning right now,” says Karin Rimnyak, Investment Advisor with Action Financial Group, HollisWealth, a division of Industrial Alliance Securities Inc. and Insurance Advisor with Hollis Insurance in St. Thomas.

“Next year is too late,” she adds.

Got a big refund? Have you asked yourself why?

“A big refund isn’t usually good for you,” says Rimnyak. “It’s good for the government.”

Owe a large tax amount? Do you know why?

“The amount you owe at the end of the calculation isn’t the amount of tax payable,” says Rimnyak. “It’s how much (is) tax payable after any tax you’ve already paid throughout the year.”

It is important to understand the amount of tax payable and how much tax you paid throughout the year.

The difference is a refund or a balance owing when you file your tax return.

“If you’re owing a large amount of tax at the end of the year then typically you’re not having enough tax deducted at the source from your employment or pension income,” says Rimnyak. “If you’re self-employed and not making installment payments you have to pay it all at the end.”

When it comes to having multiple employers, you need to identify your primary employer.

“It is your responsibility to inform any other employers you are employed somewhere else. There is a TD1 form you can file with your employer(s) to help them properly calculate your source deductions,” says Rimnyak.

“As Canadians we all have an obligation to pay our fair share of taxes to support the multitude of social programs and infrastructure that we enjoy,” says Rimnyak. “But we also have the right and a personal responsibility to look after ourselves.”

She adds: “Tax planning that legitimately and legally reduces our taxes is a wise thing to do.”

For more information call 519-631-4724, visit the website or find them under Action Financial Group on Facebook.

Action Financial Group, HollisWealth in St. Thomas is a team of investment advisers who have been offering solid financial advice as well as investment products and services for more than 24 years. Financial services include investment and insurance products, retirement planning, income tax planning and much more.

Karin Rimnyak, CFP® is an Investment Advisor for HollisWealth®. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of HollisWealth. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

This story was created by Content Works, Postmedia’s commercial content division, on behalf Action Financial Group, HollisWealth.

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