So I managed to do a very good job of procrastinating on finishing my taxes this year and I only finished up during the weekend (but apparently due to an error by CRA you get until May 5 to get it in). But now it is all done I’m just waiting for my over sized tax refund which pushed past $6000, which is good because my wife owed over a $1000.
You might be wondering why on earth I got such a big refund when I tend to avoid such things? Simple a few minor shifts in the status quo of our taxes occurred:
- The income splitting tax credit kicked in and we took full advantage of it.
- I made a LOT of spousal RRSP contributions last year and now it is refund time.
- My small business had a crappy year so I had very low profit to pay taxes on.
- My wife on the other hand had a great year and so paid a bit more than usual.
Overall I tend to think all these minor tax credits and deductions are a bit of a pain in the butt. I would much prefer a stripped down tax system which I could file on a double sided piece of paper. Ironically, I found out I’m not alone in that thought according to a recent study. We haven’t had a major overhaul in the system since 1987 and with all these minor credits you have to determine which of the 120 of them apply to you. No wonder we buy software to do taxes now!
Ironically I think my procrastination had less to do with the taxes, but more to do with having to now deal with cleaning up all my files afterwards. I normally use the end of my taxes as my trigger to do the annual clean up. I just pull out old records and scan them where possible, shred old files that are no longer required and assess if I can make any improvements to my file system. It’s not particularly fun work so I, like most people, tend to avoid it.
How are you doing with your taxes? Are you planning to use the extra time or just get it over with?