Baby Boomers Tax Returns
Many of us know that this is the age of the baby boomers, and if you are not sure if you fit into this category then all you have to realize is that if you were born between 1946 and 1965 then you can count yourself amongst this group.
Baby boomers have spent years building their portfolios. When it finally comes to the time to start drawing from retirement portfolios, a wrong tax strategy can drain the income faster than expected which can end up tarnishing their Golden Years!
So what does that mean to you from a tax point of view? Well first off it will depend on
- Whether you are still actively working or whether you have retired
- Whether you are now receiving your Old Age Security and perhaps Canada Pension Plan
- Whether you have private investment income, RRSPs and other registered savings plans.
In other words being a baby boomer and your tax implications and obligations are just as individualized as they have been prior to becoming a baby boomer.
A lot of baby boomers decided to take early retirement from their regular place of employment but at the same time they wanted to remain active in the workforce. Some have dreams of opening up a small part time or even full time business. Then when they started to add up all their sources of income they discovered that a viable and successful business could simply push them into a higher tax bracket. This acts as a bit of a deterrent for these sorts of plans as nobody wants to feel like they are simply working so they can pay more taxes.
So are there any possible solutions to this?
Any tax payer, no matter whether they are a baby boomer or not, should practice smart tax planning. Easier said than done considering how complex the Canada tax system really is. The best thing to do is find yourself a good quality Toronto tax accountant who is also tax planning savvy. This way you are getting the best of both worlds.
Your tax expert is going to scrutinize your income and determine what tax bracket you are in. Then they are going to review all the potential tax credits that may be available to you. That looks after your tax obligations and ensures that you are getting anything by way of tax credits that you are eligible for. But, it is those tax accountants that go one step further and will offer you good sound tax planning services to help you protect your tax obligations in the future that are offering you true value.
There is no way that you can make a sound decision about your financial situation and stability without knowing the tax implications for now and in the future. More and more people are beginning to rely on quality professional tax services to help them gain the most advantage when doing their taxes.
We are the Toronto area tax experts that are ready to help you get the most from your tax returns for now and in the future. Contact us now, and let’s partner up to try and save you some tax dollars.