Week 22: Taxes!

Full disclosure… I got really behind on these and they are slightly out of order. BUT, I did my taxes early, so I’m sure I’ll be forgiven.

While I usually like to do my taxes at the very last minute and scramble to finish them on time, I actually did them early this year. I think I know why – I was procrastinating from doing other stuff. I actually decided I’d rather do my taxes than say, write a blog post. That’s never happened to me before, but at least I found my incentive.

It still wasn’t easy. I did procrastinate, but I was also motivated by the idea of a tax return. I really wasn’t sure I’d be getting one this year – I had a bunch of T4s, and a multitude of independent jobs that I hadn’t been paying tax on, so it was anyone’s guess as to whether I’d be getting money back or paying it.

But somehow, everything worked out for me! Thank goodness for TurboTax. I’ve used them in the past and they are so straightforward and helpful. I absolutely hate filling out paperwork (like filing taxes), so their system of answering questions and copying my pay stubs etc. over is not bad at all. It’s still not fun, but it’s not the worst way to go about earning money.

The program also reminds me of potential deductions… like for the transit passes I forgot I had purchased in January and February of last year! What really helped me was that I shut down my tax free savings account (TFSA) and put all that money in my RSP. While I love the idea of a TFSA, the American government doesn’t quite understand it, and when I eventually decide to file US taxes (as a US citizen I’m technically supposed to, even though my income isn’t high enough that I would owe anything), a TFSA would be a non-compute. Apparently, when you invest in your RSP, there’s a bunch of money coming your way come tax season.

I briefly toyed with the idea of filing US taxes, but I quickly became baffled by the process. I don’t even want to talk about it. It’s complicated. And if you do something wrong, the IRS is all over you for years. I’m unwilling to put myself through this.

Now, because I am awesome and filed my taxes not only on time, but really early, I have a sweet tax return, which will pay for my trip to Yellowknife in June! I’m really excited for the trip, and now super relieved that I have a way of paying for it.