Filing taxes can feel overwhelming, especially when you have multiple streams of income.
Whether you’re juggling a full-time job, freelance gigs, a side hustle, or investment earnings, keeping track of everything and ensuring you don’t miss any deductions or credits is no small feat.
Thankfully, TurboTax Canada offers tools and guidance to make the process easier! Here are three tips to help you navigate filing your taxes this season.
- Keep track of your income sources
If you’re like many Canadians with multiple income streams, you’re probably familiar with the tangle of tax documents; T4s from your full-time job, T4As for freelance or contract work, and T5s for investments.
To start getting organized, establish how you made your money over the last year and figure out how many sources your income came from. Don’t forget to include tips and gratuities you earned. If you were self-employed, you’ll need to add up the amounts you billed to clients or customers and report that as well.
It’s easy to lose track of all the forms, and sorting through all these documents can be a headache, but you can import your current tax year slips and information into TurboTax by connecting to the CRA with Auto-fill my return. This feature saves time and gives you a head start on your tax filing by keeping everything organized in one place.
- Take advantage of tax deductions
When you have multiple income streams, there are often deductions or credits that can help reduce your tax burden, but it’s easy to miss them if you’re not familiar.
Business expenses for your freelance work, such as office supplies, travel expenses and equipment, are just a few examples of the available tax breaks that TurboTax can help you uncover.
Be sure to always keep your receipts on hand as well as a running total of what you’ve spent on your side hustle throughout the year.
When you use TurboTax Assist & Review, a tax expert will give you unlimited tax help and guidance as you prepare your return, as well as a final review of your return before you file so you can feel confident your taxes are done right. Plus, you may also qualify for various tax credits that you might not think to claim, like the Canada Child Benefit or the GST/HST credit. TurboTax will help you find every deduction and credit you deserve, so you can keep more money in your pocket.
- Have some money set aside for taxes
One of the best ways to avoid surprises come tax season is by setting aside money throughout the year for your taxes.
A simple yet effective strategy is to open a separate savings account for your taxes payable. Whether you’re a freelancer, side hustler, or entrepreneur, it’s a good idea to put a set percentage of your income into this account each time you receive money. This way, when tax time comes around, you’ll already have the money ready to cover your bill, making the process much less stressful.
As a self-employed person, you also get a bit more time to file your income tax return. You have until June 16, 2025, to submit – but if you owe taxes you are still required to submit payment by April 30, 2025 to avoid penalties and interest.
0 Comments