Most people think that preparing for the year-end is only something that business owners have to worry about. However, that is not the case as year-end preparation is beneficial for everyone.
So if you aren’t self-employed what steps do you need to take to prepare?
Evaluate your Income
You should evaluate your income and current RRSP contributions.
This will allow you to determine if you need to make or want to make any additional contributions before the RRSP deadline March 1.
Making the correct amount of contribution can help to decrease or eliminate any balance you may end up owing on your taxes.
Book a Massage
This is the perfect time of year to use up any unused portions of your extended health coverage as chances are low that your insurer will roll over any unused benefits into the new year.
So book that massage you have needed all year or buy that funky pair of glasses you have had your eye on since you saw them on the cover of Vogue!! You pay for your benefits; make sure you are getting your money’s worth.
Defer Your Bonus
Depending on how much income you have earned over the year it may be in your best interest to ask your employer to defer your end of year bonus until January the following year.
Not only will this allow you to revive your bank account after Christmas left it on life support, it will also allow you to defer your tax liability.