In general, personal tax filing & planning can be quite easy. This is especially true in today’s world with all of the online programs and applications that can be used to fill out your taxes. Even so, everyone will, understandably, be on the lookout for extra ways to make the most out of their tax refund. Here at Wales Accounting, we want to help you make the most out of this type of refund.

Create an Emergency Deposit

Preparing for the unexpected is something we should always be doing. This is especially true in recent years, with the onset of the pandemic and the financial impacts that event has had on the economy. When you have a few months of expenses covered sitting in an emergency fund, it will give you more stability and limit yourself from potentially stopping investments and other financial pursuits. 

Minimize Your Debt

Interest is always on the increase, and because of this we recommend you make paying off your debts (such as your mortgage) an important priority. HELOCs and personal lines of credit also need to be considered and paid off as soon as possible, so this way you can avoid the ever increasing costs of interest and save yourself some money in the long run.

Turn Your Lights Off!

Did you know that your costs on energy, gas and oil have the chance to be reduced if you spend your money on more energy efficient appliances/technology? Energy efficiency has a bunch of amazing benefits on your finances, and overtime, these savings can take a role into the investing world. When it comes down to it, purchasing efficient machines and installing better electricity are both great ways to save some extra cash.

Do Something Good

This money can be well spent for your benefit in a number of different ways, but did you know that giving this money to charity can also end up being a benefit to oneself? When in doubt, give your tax refund to an organization that you believe is worth donating to. Not only are you doing something good for others and their benefit, but this contribution can be deducted from your taxable income as charitable tax credit.

Put Your Money in the Right Places

Whilst putting your money in a basic savings account is fine, in many instances you are actually losing your cash with this method. Instead, consider putting your money into a TFSA (Tax Free Savings Account) or a RRSP (Registered Retirement Savings Plan). These accounts offer great tax benefits so long as you haven’t used up your allowances. TFSA’s, for example, exempt capital gains and investment income from taxes. Stop wasting your time and letting your money sit in a dead spot, and consider depositing it into accounts like these.

Let Our Team Help

When you need help with any and all of your financial mishaps, Wales Accounting is here to help you. With a bunch of amazing, high quality financial services we do the difficult work so you don’t have to. Whether you own a business, require personal financial assistance or otherwise, our company has got all of the skills and experience necessary to help you reach your financial goals. To learn more about our income tax filing in Richmond Hill, be sure to call us at (905) 508-9262 today!