The new year means tax season is upon us once again! Although you have until April 30, 2020 to file your 2019 income tax return, it is never too early to start gathering your documents and preparing for your taxes. The Chartered Professional Accountants of British Columbia (CPABC) has put together three tips on how you can get yourself organized and ready for your income tax filings:
1. Centralize (or digitalize) and itemize your files
Gather all tax-related files, receipts, and other paperwork in one place so you have it when you file. Consider scanning your files and saving them securely on your hard drive or cloud storage so you can easily access them. Itemizing and categorizing your files by the type of paperwork, such as medical receipts, tax forms, and charitable receipts, will also make your life easier when it comes time to file your income tax return.
2. Keep track of your capital gains and losses
Sold stocks or your home? Keeping track of your capital gains and losses throughout the year is important. Make sure you have records of your buying and selling prices to make it easier to file your taxes.
3. Don’t delay, start now
Get into the habit now and do not wait until April 30 to look for and review your files. By staying on top of your paperwork now and throughout the year, you can avoid surprises like forgotten receipts and missing documentation that could result in underestimated taxes. Once you have a system working for you, make sure to keep using it after the tax season is over.
CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy.
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