In this Feb. 9, 1964 file photo, The Beatles , from left, Paul McCartney, Ringo Starr on drums, George Harrison and John Lennon, perform on the CBS Ed Sullivan Show in New York.Dan Grossi
A sure sign I'm a baby boomer (tail end, anyway): Writing about taxes inevitably makes me think of the song Taxman by The Beatles. The opening line is, "Let me tell you how it will be." Such a perfect summary of the power the Canada Revenue Agency has over us.
The deadline for filing your tax return for the past year is Monday, April 30. Here are some resources to help ensure you pay the taxman what you owe and nothing more.
What's new in taxland
A list of changes to tax credits – what's new, and what's been taken away. Also, there's a new service called Express NOA, for notice of assessment. If you file your taxes online, you get an immediate notice of assessment showing how much you owe or will receive as a refund.
A tax software primer
Paper returns accounted for 16 per cent of the total last year, compared to 36 per cent in 2012. The reason: Filing electronically is so cheap and easy now. If you don't want to spend money on tax software and have a fairly basic return, try one of the many free products available. Here's a useful rundown on what's available in tax software. Here are some reviews of the best tax software programs for individuals and for small business. Always look for disclosures when reading reviews like these to see if the website is receiving ad revenue from any of the products mentioned.
How to do good with your tax return
A useful summary of tax credits and deductions is presented here with the idea of freeing up money you can donate to a worthy cause.
For seniors
A list of tax benefits and credits aimed at seniors
For young adults
A list of situations that may complicate your tax filing, including payment through tips, teaching overseas and taking parental leave.
Can I claim car-related costs if I used my vehicle for work?
Here's what you need to know to claim car payments, gas and other costs.
What taxpayers are asking
These are the top questions fielded by the Canada Revenue Agency at this time of year.
What about instant cash back on tax refunds?
You could pay fees of 15 per cent on the first $300 of your refund and 5 per cent on the rest. So avoid this service unless you desperately need the money.
Watch out for scammers
Here's a story about a woman who took a call from a bullying scammer claiming to be a CRA agent who was following up on problems with her tax returns. Now for a bitcoin-related tax scam that fooled an Edmonton woman.
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Today's featured financial tool
The accounting firm PricewaterhouseCoopers offers income tax calculators for the 2018, 2017 and 2016 tax years. Plug in your taxable income and you'll see the amount of tax you owe, tax as a percentage of taxable income and your marginal tax rates on ordinary income, capital gains and Canadian dividends.
Ask Rob
The question: "My wife and I are both 73 years old and wonder if it is a good idea to bring our RRIF balance to zero by age 85, even though doing so puts me in the second-lowest federal (by $16,000) and provincial (by $23,000) tax bracket. The reason is to avoid our survivors paying the highest tax bracket in the year of our death. Some of the extra withdrawals would go to TFSAs and some to GIC's and high-interest savings."
The answer: "Minimizing taxes is an important consideration in financial planning, but it's not the only one. That's why I suggest you get a fee-for-service financial planner's point of view on this. You should be able to by a consultation on an hourly or flat-rate basis, with no products sold. Here's a directory that may help you find a planner near you."
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length.
In case you missed these Globe and Mail personal finance stories
- Toronto millennial earning $36,000 is 'resigned to the fact' that she'll never own a home
- Self-employment can save tax, but beware of recurring losses
- Three top dividend picks in the beaten-down power and utility space (for Globe Unlimited subscribers)
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Rob Carrick