It’s tax time and for the first time in four years my taxes are going to be simple! That’s right since my husband stepped away from his business last year and got a full-time job, things have become significantly more streamlined, tax-wise.
This year we only have my full-time job, his full-time job, and my side business to contend with. No CCA allowances, no HST, no mileage, no amortization, no small business loans, no waiting for final numbers to be tallied.
Instead, we have just a handful of T4s and some side hustle income! I’m so, so happy about this because we’ve always done our taxes ourselve which of course means I go through everything with a fine-toothed comb to make sure the numbers are 100% accurate. Making sure the numbers all added up was no small feat when my husband was running his own business full-time!
This year, things will be much simpler. Here’s what I use to make filing my taxes as painless as possible. I encourage you to check out the resources I’ve supplied below, they might be helpful to you!
Filing Taxes Yourself
If you’ve got a relatively simple tax situation (ex: two full-time jobs, some RRSP contributions, etc.), there’s no reason you can’t do your taxes yourself. I’ve been doing my own (and my husband’s, and my sister’s) since I was a student, and I’ve always used TurboTax. The online version is super simple to use, and they have business editions as well. In fact, right now you can save 20% on TurboTax until March 5th!
Finding Information on Filing Taxes as a Freelancer
If you’ve followed my advice and started up your side hustle, congrats! Way to diversify that income!
But don’t forget to claim that extra income on your taxes. If you’re unsure how to go about doing this, Save.Spend.Splurge has put together some excellent guides that you can go through here and here. Honestly, I still refer to these guides every year as a refresher.
If you live in the United States, Carrie from Careful Cents has put together an excellent freelancer tax check-list, this would be a great place to start.
Use Your Income Tax Return For Good, Not Evil
Not that buying stuff is bad…but I can think of about a million other (better) things you could do with your income tax return. Every year I use my income tax return to help me reach my financial goals, and you should too! I’ve used my income tax return to pay off debt, boost my emergency fund, save for a house, and this year will be no different. I plan on using my income tax return to help me reach my goal of saving $35,000 for my house down payment fund.
Sidebar: Some personal finance experts would point out that if you are getting a refund then you are essentially loaning the government money at 0% interest, and you should adjust your tax withholding. Personally, I find that making lump sum payments towards your financial goals is a great way to renew your interest in debt repayment and savings, and is worth that 0% interest loan. Just my two cents.
Tell me, are your taxes complicated this year? Are you planning on using your refund to further your financial goals? I want to know!
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