In Canada, a citizen who earns must declare their income and file taxes to the government. Not doing so leads to legal and financial penalties. However, as the laws regarding taxes change each year, taxpayers face difficulty figuring out the taxation process. You must consult the best Personal Tax Service Provider in Montreal to avoid tax-related challenges.
A Personal Tax Service Provider in Montreal helps to prepare taxes, save on taxes, accomplish financial goals, and file a personal tax return without any hassle. In the next few paragraphs, you will get a clear idea of how to save personal tax and all about it.
What is personal tax?
Personal tax is the tax that individuals pay for their income and other earnings to the Canada Revenue Agency (CRA). A personal tax combines Goods and Services Tax (GST), Harmonized Sales Tax (HST), and property tax. In Canada, the personal tax rate is directly proportional to the rate of income.
How to save Income Tax?
A Personal Tax Service Provider will provide smart income tax-saving solutions. These 5 effective tips will help you to save money on your income tax –
- Maximize RRSPs: Every year, contribute to your Registered Retirement Savings Plan (RRSP) and save upon your personal tax return. Keep in mind this contribution should not exceed your RRSP limit. Otherwise, you are subjected to a penalty for over-contribution to RRSP. If you are interested to know more, consult with our CPAs.
- Deduct Employment Expenses: Employees can claim employment-related expenses as tax deductions on their personal tax returns. This scheme includes house rent, condominium fees, home internet access fees, maintenance fees, supplies, and vehicle expenses. To claim employment expenses, complete form T2200 by your employer.
- Charitable donations: You can claim for a significant tax credit with a charitable donation. The claim amount depends on which province you live in and the amount of donation.
- Claim your Medical Expenses: Get a tax credit upon your personal tax return for medical expenses paid. To qualify for medical claim expenses, you need to show the paid receipt with the company’s name, a prescription by a medical practitioner, and many more.
- Tax-Free Savings Accounts (TFSAs): This is one of the popular tax-saving strategies in Canada. TFSA is a savings account in which contributions, interest earned, money withdrawal, dividends, and capital gains grow, all are tax-free.
Can a Personal Tax Service Provider in Montreal help you?
Obviously. Hiring the best Personal Tax Service Provider in Montreal is most important to file tax-saving and hassle-free personal tax. They will help you in the following purposes-
- Savings and error-free processes: A professional accountant can help you to save money, reduce stress, and error-free personal tax file.
- Experience and awareness: These accountant professionals are experienced in tax laws, and they will ensure to file a legal personal tax. In addition, they can pinpoint your tax-saving category and claims that work for you.
- Tax-planning: The main objective of tax-planning is to ensure you receive personalized tax planning services for your financial needs. That way, a proper tax planning will help you to save personal tax.
In summary
The preparation of a personal tax file is stressful for most people; however a personal tax service provider offers you legal and tax-saving tax file strategies. To analyze your tax file in accordance with current regulations at a pocket-friendly budget, feel free to contact the best accounting consultant in Montreal, SJT CPA.
