Two Effective Tax Saving Tips and Plans

Congratulations! For adding another achievement to your business, you are able to take it to the level you want. Over the years you may not have made any drastic changes in the way you do business, but you have to keep track of the changes made by the tax department. Here are some Tax Saving Tips and plans that can be beneficial for you. To withdraw full benefit from corporate structure you need to understand the following parameters:

  • You should keep a record of all the transactions and make sure to keep track of supporting documents. One of the good accounting practices is to keep a record of all the transactions. This will enable you to keep track of your expenses, revenues, and net income.
  • If you are already occupied and don’t have time to do all the calculations, make sure to keep record of – receipts, invoices, deposit slips, agreements, bank statements, letters from WSIB, CRA and other.

You should also have all the documents pertaining to the foundation of your company, minute book, and articles of incorporation. You need to have some evidence in order to support you case in front of CRA, therefore you need to have some documents at your disposal. You need to prepare before hand in order to take care of this, the best way is to store all the related documents of your business activity.

Some tax saving tips and plans for families are as follows.

  • Everyone is looking for ways to reduce tax, as it is a considerable burden on many families. Families can include their child care expenses in order to save tax. There are two ways to do this. Flexible spending account is the first option. You can reduce taxable income through your employer sponsored accounts. It contributes to expenses towards your child care on the basis of pre-tax.
  • The second option is to claim the expenses on your child care and use it to deduct taxes at the end of the year. Many parents are not aware of the fact that the money spends on summer day camps for their kids can be used to save tax.
  • If the main reason for your child attending summer day camp is that you are going to school or work, than the money spend on these camps can be used to save taxes. Camps are entertaining and fun, and this fact does not eliminate them from tax deductibles.

Tax saving tips and plans through health care are another option to save tax. Flexible spending account for health care expenses can be used to deduct tax in a given year. It is important that you keep track of all your health care expenditure; this also includes the medications you purchased in a given year. You can get a reimbursement for your medical expenditure, if you have a flexible spending account.

These are couple of tax saving tips and plans that can help you immensely in saving money.