What you need to know to file your tax return this year

Tax season is now in full swing, and a local financial advisor is sharing some tips that will be helpful every year.

Underused housing tax is a new thing catching people by surprise this year.

“If you haven’t been renting out your house, if you have an empty house, you are going to be taxed on that 1 per cent annually of the price of the home. If you have property, you must file it to your report. Otherwise, that will commit 10 thousand dollar penalty,” Candice Bakx-Friesen, a financial advisor, said.

Filing taxes on time also saves you from penalties, Bakx-Friesen said. Nevertheless, many tend to put it off to the last minute, believing they are experienced enough to do it easily.

“We do this every year. But it’s been a year since we filed, so we kind of forget the process," Bakx-Friesen said. "So, if you make a template: these are the typical credits that I have to watch for, deductions - next year it makes it that much easier.”

Finding the right papers and forms is time and nerve-consuming.

“Have a place where you keep all your receipts and file things away. So that you are not scrambling trying to find a random piece of paper when it’s crunch time. Keep everything for six years to be on the safe side.”

Being aware of changes and using professional accountants to help to get the most of your return is another thing Bakx-Friesen recommends. She adds that many people who have received a return tend to blow through it quickly.

“This is like a bonus; it feels good to get a chunk of cash. But try to be responsible, do the wise thing: pay off debt or invest this money not to have regrets later on,” Bakx-Friesen advised.

Those people who owe tend to avoid and postpone the payment.

“The penalty is only an add-up. It’s better to be proactive. Even if you have issues paying that amount that’s due, reach out this eerie, make arrangements.”

This year's tax-filing deadline is May 1, due to April 30 falling on a Sunday.

- With files from CTV’s Nicole Dubé