Taxes are the lifeblood of the government and for this reason, they have become every citizen’s obligation. Taxes can be paid quarterly or annually, depending on which city you are from. However, whether or not interested in paying your taxes, you cannot avoid taxes themselves.
The worst case scenario you can fall in, in case you don’t pay your taxes, are ending in jail, paying huge penalties, or facing huge tax cases. Surely, you don’t want these things to happen. So if you are planning to pay your taxes this year, here is basic checklist of what you might need.
- Personal information – This includes your social security number, your original full name, and the full name of your spouse, beneficiaries, residence, birthdate and birth year, and status.
- Tax returns – Your personal tax will be computed according to your current income and also, your previous tax payments will also be assessed. Since your tax returns will prove that you have paid your tax liabilities, it is important that you also bring them with you.
- Information about other people who are in your tax return – This may include your childcare records, tax ID numbers, income information, and social security numbers. If your state requires that you need to fill a specific form, these information should also come in handy so the Mississauga personal tax preparation will be fast and easy.
- Education payment – If you have been enrolled in any educational plan, you may need to show your statement of account as proof of payment. Depending on your state, this could help you enjoy certain discounts. Pertinent forms from educational institutions such as form 1098-T is also important, along with tuition receipts, records of any scholarships, and other financial statements if you have taken up a student loan.
Personal Tax Deductions
There are many ways that you can get tax deduction or tax credits. For example, if you have a business and you are giving out 20% discount to seniors as part of government incentives, then you can reclaim it as tax credit later on. Other aspects where you can get a discount also include the following:
- You are involved in child tax credit payment or you have two to three dependents with you.
- You have made charitable donations or investment interest expense.
- You have spent money for medical and dental expenses.
- You may also get miscellaneous deductions for your unreimbursed employee expenses and union dues – this is applicable if you are an employee.
After Preparing a Tax Checklist
Before you create a checklist, you first need to know what type of taxes you are going to be paying. As we all know, taxes can differently apply to people. So here are some things that you should do.
- Organize your checklist pad in a file folder where you can immediately see it.
- As you the tax document, place them together with the checklist.
- Scratch off anything on the list as soon as you get them done.
- Add into the checklist anything that you have discovered as you go through the process.
Paying your Mississauga personal tax does not have to be so difficult. Now that you have this handy checklist with you, your task is going to be even more comfortable.