Here's some expert advice for this tax season

Tax season is officially underway, and while it may be easy to put it off, one expert strongly recommends tackling tax returns head-on to avoid any last-minute rushes before the April 30 deadline.

"You want to avoid any surprises," said Rob Katzman, the owner of A Taxing Situation in Alliston. "If you file your tax return at the beginning of March, and you end up owing money, you have two months to save up and pay your bill."

And in the event of tax returns... "It's your money. Don't you want it now?" he added.

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Katzman, who has been serving clients in Alliston since 2017, stressed the value of working with reputable accountants to alleviate the stress associated with tax season. Establishing a strong, trusting relationship with tax handlers can streamline the process and ensure compliance with ever-evolving tax regulations.

"There are so many changes that happen from a year-to-year basis. Unless you're working in the industry, it's difficult to keep up with them. A lot of the changes may apply to you or may not," he noted.

One notable change for the 2024 tax season is the shift in federal income tax bracket thresholds compared to the previous year. Additionally, a significant alteration affecting an aging demographic is the requirement for all trusts exceeding $50,000 in value to be registered.

"It is for all trusts that are in existence no matter when they were started. Most people don't even realize that they have a trust," Katzman said.

This change particularly impacts parents co-signing children's bank accounts, managing elderly parents' finances, or co-signing mortgages to aid children in property purchases.

Katzman warned that failing to register trusts could prove costly, as penalties start at $10,000 and could be as high as five per cent of a trust's value.

Tax-preparers could also be held accountable.

"If you have a trust situation, and I don't ask you about it, I'm actually liable to a $2,500 fine," the A Taxing Situation owner stated.

Katzman said the cost of registering a trust varies by case and that a trust return should be filed with the help of a professional.

He also reminds eligible clients to apply for the "multi-generational home renovation tax credit" and for potential new homeowners to open a "first-time home ownership savings plan."