TurboTax Giveaway and Great Tax Filing Tips
Once again thanks to my friends at TurboTax I have a few online codes to giveaway to some lucky readers this tax season. Thanks TurboTax Canada! I’ll draw the winners of this giveaway at random in March.
To help improve your financial literacy, I had the pleasure of working with TurboTax and tax expert, writer, speaker and personal finance consultant Robin Taub.
Robin, thanks for taking the time to chat with me again this year. Last year we talked tax credits – what are some of the new tax credits folks should be aware of this tax year?
Well Mark there were several tweaks to tax credits and deductions for families with kids:
- The child care expense deduction has increased by $1,000 per child. It is now $8,000 for children under age 7, $5,000 for children ages 7 to 16, and if you claim the disability tax credit for your child, the deduction limit has been raised to $11,000.
- The children’s fitness tax credit is now a refundable tax credit. You can claim up to a maximum of $1,000 of eligible fees per child, which at 15%, creates a refund of $150 per child. Fees are for registering your kids in ongoing physical activities or classes.
- The tax credit for children under 18 has been eliminated.
- For the 2015 tax year, the universal child care benefit (UCCB) is $160 per month for each child under age 6, and $60 per month for each child aged 6 through 17. The UCCB is taxable in the hands of the lower-income spouse or common-law partner. Note that the government plans to introduce a proposal in the next federal budget to replace the UCCB with a new Canada Child Benefit.
- This may be the last year to claim the family tax cut, a non-refundable tax credit of up to $2,000 for eligible couples who live with children under 18. The government is expected to cancel it in 2016.
I suspect some people want to do more of their taxes on their own – but they’re unsure what to do or where to start. How would you suggest people get prepared for this tax season?
- First and foremost, register for the Canada Revenue Agency’s My Account, so you can view or change your tax return and notice of assessment, track your refund, and check your benefit and credit payments, as well as your RRSP deduction limit.
- If you are using certified tax preparation software like TurboTax, you can take advantage of a fantastic new secure service from CRA called Auto-fill my return, but first you need to be registered for CRA’s My Account.
- Auto-fill my return lets you automatically request and receive tax information from the CRA, such as from T4, T5, or RRSP slips at the time you are filing your return. Then TurboTax will automatically fill in the relevant sections of your return, doing a lot of the work for you!
- Sign up for direct deposit so your tax refund goes straight to your bank account. If you file online using TurboTax and CRA’s NETFILE, you may get your refund in a matter of days.
- Set up a large accordion folder and organize your receipts and slips. This includes tax information slips, as well as supporting documents like bills, credit card statements, receipts for car, home office and other business expenses, stock transactions, and housing, business and rental property records.
I would also suggest to have as much information on hand as possible when you get started, but don’t worry if you don’t have all of your tax information yet. You don’t need to finish the return in your first sitting, because when filing with TurboTax online, you can always jump in where you left off. And with the new mobile version, you can add additional information on the go, as it comes in.
Managing my own taxes is something I’m trying to get more competence in. Given tax season is upon us, what are some of the common mistakes you see with DIY tax filers every year?
Some common mistakes I think you should avoid:
- Claiming moving expenses when your employer has already reimbursed you. If you claim moving expenses, you must include any reimbursement as income on your tax return.
- Claiming public transit day passes, tokens or tickets. You can only claim monthly or annual transit passes.
- Claiming personal or living expenses that are not legitimate tax deductions, like funeral costs, wedding costs, or legal fees for separation or divorce agreements.
- Filing an incomplete or inaccurate return. Using tax preparation software like TurboTax ensures that your return will be prepared accurately, reflecting all of the latest tax changes. TurboTax will also guide you through the completion of your return and search all of the tax credits and deductions to make sure you take advantage of the ones that apply to you, so you pay the least amount of taxes possible.
Robin, I’m sold! I’ve been using TurboTax for years and will continue to do so. Thanks for the tips Robin, but I know you have more to share. In Part 2 of this post I’ll share more of Robin’s tax tips to help you get online with TurboTax and file your taxes sooner, easier and accurately.
Now – time for the giveaway! Good luck to all entrants!
<giveaway closed and over – thanks for participating!>
Thanks for turbotax giveaway Mark. I would give it a try this year. Always looking for a better way.
Looking forward to finding out who won 🙂
Thanks Caroline! I’ve been contacting winners this week but if some of them don’t get back to me, names go back into the hat!
Very nice! I’ll keep my eyes on my inbox, just in case.
I’d love to win because I don’t want to pay to have my taxes done!
I want to win because I love Turbotax software and I have yet to complete my taxes!
I would like to try to do my own taxes
I want to win this because we already use TurboTax! Enjoy your posts Mark!
I have to file my own personal taxes for the first time EVER and I’m scared to death!!!
Journeys of The Zoo
I love to do taxes it’s so much fun.
I want to win because TurboTax simplifies doing ones taxes. I used TurboTax last year and it was so easy because the program walked me through the tax form step-by-step.
I want to win because I’m ready to file & am a long time fan of TurboTax. Thanks for the chance & great tips!
I want to win because I trust TurboTax and I need to file my taxes of course!
Love the blog. Thank you for the tips.
I want to win because I believe this will make doing my taxes easier .. oh and I wont have to pay someone else 🙂
I want to try TurboTax and see if it’s as good as you say 🙂
Great timing, I just started my taxes today!
I don’t want to win. I’ve been using StudioTax for over a Decade now. I find it very easy to use. It’s free & can be used for up to 20 other returns of friends & family. After 10 years of flawless returns I finally sent them a $50 donation last year…but not required. Again it’s VERY Easy to use & it’s 100% Canadian. Thanks.
That was very nice of you to do that Lawrence – no doubt they appreciated it. No worries about the comments, everyone has their fav. tax filing tools. I appreciate the comment and reading all the same.
Wasn’t planning to mention it, but as others have been mentioned, I’ve used Taxfreeway for years. It walks one through the process and you fill in the forms, but works well and it’s not that expensive.
No problem Cannew. We all have our favourite tax filing software.
I use TurboTax every year and would be nice to do it for free this year 🙂
Thanks for the new info!
I want to win this as I have been using turbo tax for many years for my wife and I
I have always done my taxes on PAPER, the old fashioned way. I think it is very important to teach all my young adult kids how to do this on paper where they can follow along and learn about everything, not just the things that affect them right now.
I’ve tried the online way a couple of times–once way back in the early days and I abandoned that because there was an error in not giving me a deductiion I was entitled to. Tried again two years ago but gave up in frustration with the software…. That wasn’t Turbo Tax however.
If I got the software free, I would try it again.
Old school Barbara – all good 🙂
Overall, I find TurboTax very good. You can always jump to the online forms to fill in vs. following the online prompts blindly. Understanding and managing your tax return is a good financial skill to have. Thanks for reading Barbara.
turbotax is awesome!
I want to try this one. We are planning to do the tax online anyway. So, getting it free, is always nice
Good tips. Thanks!
I want to test drive the autofill feature.
Too bad there wasn’t more information Investment Capital Gains and Dividends? Ours is fairly straight forward as most of holdings are with one broker, but there may be some tips he could pass on.
I’m not sure Robin has too many new tips on that front for the next post. You know the capital gains rules by now Cannew! 🙂
I want to win so I can try out the auto fill my return feature.
I want to win because I think that Turbo Tax will save me money
I’ve used TurboTax before and loved the simplicity of it. Thanks for your article and the chance to win a copy of the software 🙂
Great article. I am just starting to do my own taxes and would love to use the Turbo Tax Software. TKs.
I can’t wait to try that auto-fill feature!