October 2021 Tax and Money Tips - Planning for Next Year's Tax Filing

Happy Thanksgiving everyone! I hope you are enjoying time with family and friends and celebrating things you are thankful for.

This month I decided to dedicate it to Tax Preparation for 2022. Yes, it's still October, but there are things you can start taking care of, so you can minimize your 2022 taxes, or you can prepare for the balance owing to be paid in 2022. In addition to sharing money tips in this newsletter, I want to let you know also that I will be hosting a webinar too - to answer your questions about preparing for next year's taxes. See below for further details on these paid webinars.

So here are the tips for this month.
1. If you have extended health care, check to see if there are benefits you would like to claim before December 31st. Book those appointments because a lot of medical professionals such as dentists get busy in December as many people will want to get services done before year-end. Does your spouse also have his/her own extended health coverage? What about a Health Spending account, do you or your spouse have it too? If so, claim your medical expenses from all those sources. Anything left that is not reimbursed, you may be able to claim it on your tax return.

1a. Do you have a large medical bill such as an orthodontist bill? Usually you have options of either paying them off in the beginning, or making monthly payments. If you have the money, pay it off at once, and make a larger medical expense claim on your tax return for any out-of-pocket medical expenses (the portion that is not covered by your insurance or Health Spending account). 
Bonus: Some orthodontists will even offer you a discount if you pay off your orthodontist bill up front.

2. Did you have any unusual event happening this year, for example purchasing a new home, converting your principal residence into rental, receiving a large sum of money as a severance, receiving inheritance or others? Find out if there are any tax implications. Here is an example, we have no gift tax in Canada. Therefore, inheritance money is tax-free. If you are not sure about any tax implications, you can schedule a paid consultation time to chat with me (30-minute complimentary for new clients) by clicking on my calendar button on lower right or you can also attend my paid webinars later this month. 

3. Have you done your Will? If not, check out Free Wills Month at https://freewillsmonth.ca/ which offers free Wills for individuals or couples aged 55 and over. Contact them if you are interested. If you need a Will and Estate Planning lawyer referral, let me know. I am not affiliated with any lawyers, but I know individuals who provide good services. If you are a supporter of a charity, check to see if the charity offers any type of free estate planning for its donors.

Those are all the tips for this month. Below are the details for my October webinars.

Preparing for Next Year's Tax Filing
Tuesday, October 19, 2021, 7-8pm Pacific Time
Tuesday, October 26, 2021, 7-8pm Pacific Time

Cost = $25/person or $45/couple

- What did you wish you knew when you filed your taxes earlier this year?
- Were there any surprises?
- Was there anything significant that happened in your life this year or are you expecting an unusual event happening before the end of this year? Would you like to know the tax implications for it?
- What would you like to know about your taxes next year?

Submit your questions to [email protected] to be answered during the webinar. Please do not send any personal or sensitive information.

Register for the meeting by sending an email to [email protected]. A Zoom link will be emailed to you after payment is received. E-transfer can be sent to the same email address. Amount paid can be used as a credit if you use PMC’s service later.

That's all for October. Enjoy the cooler and crisp weather!