What does filing a tax return look like for you? Are you one of the millions of Canadians who simply gives their forms to their parents and offers up an autograph when the time comes? Better yet, do your parents grab your T4 when it arrives in the mail so that they can ship it out to their tax preparer? If so, this generous act from your parents can and will cost you millions of dollars.
Just like driving, cooking and exercising, the process of filing our taxes is something we must be a part of in order to gain new insights and understanding. You will not get 6-pack abs by watching Mom and Dad do crunches in the quarantine-inspired basement gym. Likewise, you are not going to understand the many different ways you can build wealth and reduce your burden without sitting down with a professional who takes the time to explain it to you. Learning the difference between interest income, dividend income and capital gains is the financial equivalent of knowing the difference between a push-up and a sit-up (both are awful if you ask me). Knowing how the Canadian tax system works is going to allow you to make small adjustments (for example; using RRSP's to reduce your tax bill) to your financial life that can be the difference between retiring a millionaire and not retiring at all.
This tax season I would implore you to take the initiative and find someone you trust to file your taxes for you. Choose a preparer with experience, an affordable fee, and the time to show you how you can improve your financial situation. Ask dumb questions, take notes and then implement the suggestions immediately. Retirement just got one day closer.
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