Some would say there are only two things we can be sure of in life; death and taxes. Not surprisingly, both can cause tremendous stress. Financial stress is a major factor in health problems like depression and decreased immunity, and a leading cause of divorce.
That being said, obviously nobody wants filing taxes to be the last straw that broke the camels back! So how do you and your partner properly prepare with that April 30th due date looming? A little effort in advance can go a long way in helping to prevent stress and tension.
Be organized. Be sure that you have a designated spot in your home where you both set aside all the important papers that you may need to file your taxes. This can simply be a drawer or a filing cabinet. By having everything on hand, when the time comes you will avoid scrounging, or blaming each other for losing that important receipt; or spending precious time looking for it!
Review. Throughout the year, set aside time to sit down as a couple and review your financial situation. There is nothing worse than getting the surprise of your life when you start doing your taxes. This way you will be able to better prepare for any money owed and it will give you a clear picture of your financial position. You may have to give up the trip down south for RRSPs, but at least you are making cognizant, educated decisions together!
Stay informed. If you decide to wear the hat of accountant, make sure you stay current and up to date on new changes. Generally every year there are small changes made to tax regulations, it is important that you go online, research, or visit a professional. Who knows, you could be missing out on money!
Start early. We are all guilty of procrastinating in one way or another. Carrying this into tax filing is simply not a good idea. Not only will you spend sleepless nights, you may miss out on valuable information and make mistakes. Not to mention your spouse will be cold in bed alone, and working under a deadline just simply is not fun.
Make it fun. You are probably asking, “Is that even possible?” Well it is time to think outside the box! Put on some nice music, a little aromatherapy, a comfortable place to work and a good cup of coffee. Remember when you were in university and you used to go buy treats to have while you were studying for exams?… You are never too old for some M&Ms and sour candies.
Take baby steps. Do not overwhelm yourself. Break the process into smaller steps and set aside time each week to complete one. By using this approach it is probable that you will pay more attention to detail, learn more, and experience less anxiety.
Reward yourself. Or even better, have your spouse reward you! If you have been sitting at the desk all day ask your partner to prepare a nice meal to acknowledge your hard work. Not only will this give you something to look forward to while you work away, but it will provide your spouse with a way to thank you for your efforts. On the other hand you may wish to get up and do some exercise, get out of the house, or head out to socialize with friends.
Get help. Remember, if taxes cause great stress to you, your partner, or your relationship, it may be wise to get professional help. Speak openly with your partner about why and how you think a professional could help. Come to an agreement about who you would like to engage for help, maybe you are not comfortable with going to a family member and would prefer a more confidential source. Always remember, sometimes a little investment can go a long way!
The Canadian Revenue Agency provides a tax return preparation service for low to modest income Canadians who have a simple tax return. If you wish to learn more about this service visit www.cra.gc.ca
Happy tax filing everyone!