Now that tax season in Canada has come to a close and you’ve successfully filed your taxes, you may be wondering what comes next. While it’s definitely a relief to have this annual task completed, there are still a few important actions you can take to make the most of your tax filing and ensure you’re prepared for the year ahead. Here are some key things to do after filing your Canadian taxes:
1. Review Your Notice of Assessment
Once you’ve filed your taxes, the Canada Revenue Agency (CRA) will issue a Notice of Assessment (NOA). This document outlines the details of your tax return, including any amounts owed or refunds due. Take the time to review your NOA carefully to ensure all the information is accurate. If you have any questions or notice discrepancies, contact your agent or the CRA directly to address them. If you need help correcting any information regarding your filed taxes, don’t hesitate to reach out to Benfrisco and one of our professionals will assist you on that.
2. Plan for Tax Refunds or Payments
Depending on your tax situation, you may be expecting a refund or have an outstanding balance to pay. If you’re receiving a refund, consider how you’ll use this money—whether it’s saving, investing, or paying down debts. On the other hand, if you owe taxes, plan how and when you’ll make the payment to the CRA to avoid any penalties or interest.
3. Organize Your Financial Documents
After filing your taxes, it’s a good time to organize and store your financial documents for the year. This includes receipts, investment statements, T-slips, and any other relevant paperwork. Keeping these documents in order will make next year’s tax filing smoother and ensure you have everything you need in case of an audit. If applicable, consider one of our affordable bookkeeping plans for your business to have accurate and organized books throughout the year.
4. Consider RRSP Contributions
If you haven’t already maximized your Registered Retirement Savings Plan (RRSP) contributions for the year, consider making additional contributions. Contributions made before the RRSP deadline (usually March 1st of the following year) can be used to reduce your taxable income for the year you filed taxes.
5. Update Your Financial Plan
Take this opportunity to revisit your financial goals and update your budget and savings plan accordingly. Whether it’s saving for a major purchase, building an emergency fund, or investing for retirement, align your financial strategy with your current circumstances and aspirations.
6. Explore Tax-Saving Opportunities
Look into potential tax-saving opportunities for the upcoming year. This could include exploring tax credits and deductions you may be eligible for, such as the Canada Child Benefit, tuition credits, or medical expenses. Understanding these options can help you optimize your tax situation in the future. Our professionals at Benfrisco can consult you on all the possible ways you can save on taxes based on your individual/business situation.
7. Stay Informed
Stay informed about any changes to tax laws or regulations that may affect you. Follow updates from the CRA and consider consulting with a tax professional if you have specific questions or concerns about your tax situation.
8. Plan for Next Year
Finally, use this time to plan ahead for next year’s tax season. Keep track of important dates, gather necessary documents throughout the year, and consider any changes in your financial situation that may impact your taxes.
By taking these proactive steps after filing your taxes, you can stay on top of your financial responsibilities and position yourself for a successful and stress-free year ahead. Remember, staying organized and informed is key to maximizing your tax benefits and ensuring compliance with Canadian tax laws. Alternatively, Benfrisco can take care of all these steps for you. Give us a call today and find out how we can assist you on your tax planning!
