Plan ahead for next year's tax return - Start Early!

Tax Planning for Individual

Tax Documents Checklist

One of the most important things to do during the year is to store all tax-related documents in one place.?

Any electronic files should always be backed up!? If you don't retain records electronically, just on paper, then if you have a filing cabinet, have one or more folders for these documents, including:

1. your tax returns and supporting documents for previous years
2. notice of assessment and any other correspondence from Canada Revenue Agency
3. records of tax instalments made
4. wage statements
5. medical and dental cost receipts -
6. receipts for?attendant care, including?attendant care expenses paid to a retirement home
7. transit pass?receipts (only for Ontario seniors)
8. receipts related to?fitness/activity credits?and?children's arts tax credits?for Manitoba, Newfoundland & Labrador, Nova Scotia, PEI, Saskatchewan and Yukon
9. child care cost?receipts - could include summer camp receipts
10. receipts for?moving expenses, if you moved at least 40km to be closer to a new job, to run a business, or?to attend a post-secondary educational institute full time
11. receipts for costs related to?home renovation and home accessibility tax credits
12. charitable donation?receipts
13. political donation?receipts
14. RRSP contribution?receipts
15. records of repayments to?Homebuyers' Plan?or Lifelong Learning Plan
16. records of RRSP or?RRIF withdrawals, and the amount of?tax withheld
17. records of investment purchases and sales in non-registered accounts (transaction confirmations).? These should be kept until 6 years?after the investments have been sold.
18. investment account monthly statements
19. records of contributions to?First Home Savings Account (FHSA)

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• Tax Planning for Employees

·?????? If you are an employee, make sure that the?TD1 form?filed with your employer is up to date.

·?????? Review the amount of income taxes, Canada Pension Plan contributions and Employment Insurance Plan premiums being withheld from your wages, by checking against the CRA payroll calculator.?

Tax Planning/Preparation for Investors

If you have?investments in non-registered accounts, see the following:

·?????? Tax Issues re Investing, and Tax Treatment of Different Types of Investments

·?????? Foreign Asset Reporting - Form T1135 Foreign Income Verification Statement?- VERY important!

If you use spreadsheet programs, it can be very helpful to have an?investment continuity schedule?for non-registered accounts.?

The worksheet should have beginning of year balances, purchases and sales during the year, and end of year balances, with capital gains being calculated in the worksheet for any investments sold.?

If the investments are in US dollars, all amounts should be?converted to Cdn$ using the exchange rate as of the date of the transaction.

• Tax Planning for Seniors - or Planning Prior to Age 65-

Plan ahead, especially if you are an investor with some capital loss carry-forwards, regarding the?Old Age Security Pension Clawback?- capital gains can increase the clawback, even if they are completely eliminated by capital losses?carried forward.

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By planning ahead and starting early, you can take full advantage of these benefits and ensure a smoother tax filing experience.

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