Personal Income Tax Returns Scarborough
Personal income tax return- why calculate in front of kids?
Do you remember how you used to be as a kid? All toys and plays. Not an iota of understanding of how finances work. But as you grew up, you really had a hard time getting along with the tax system and honestly, you still don’t have complete knowledge regarding it. There are fair chances that you’ll shrug your shoulder and say, “I don’t know” when you’re caught off guard.
It’s important to make our kids aware of the working of tax system. ZRPC, the leading professional tax consultants in Scarborough, advocates calculating your personal income tax returns in front of your kids and making it a play of sorts. And here’s why you should do it.
Telling them about the complexities of tax system
If you’re not aware of the cuts and the corners of tax system, tax filing becomes a nightmare. That’s also because we were not taught how it’s done when we were kids.
Therefore while you’re calculating, make your kids sit with you and participate in the process. Tell them about the tax deductions applicable in the present income, the part which you can write off, and how to properly calculate the return. Even if you’re taking the help of a professional, take your kids along.
This will strengthen their basics of personal income tax and make them confident future tax payers. Because for beginners, filing tax returns can be really daunting for they just don’t know where to start from. This will also come in handy when applying for a student loan.
They’ll know that small things matter
A little receipt from the gas station, a grocery bill, rent receipts, all these matter when you’re filing your return for a financial year. Especially when you’re running a business that lets you have tax concessions on transport, raw material cost, etc.
When you discuss all this with your kids, they’ll know that even the smallest of receipts are important. When they’ll reach the stage when they become taxpayers, they’ll remember this and will be careful about it beforehand.
Your kids will learn the importance of saving
A penny saved is a penny earned. We all have been hearing this since our childhood, yet the only time we started applying this principle in our lives is when we started paying taxes. But at that time, we take it as a responsibility rather than a habit.
But is started from the beginning, our kids will know how much impulse buying hurts when you’re filing a return. This will make them curb spending on unnecessary items. Apart from that, they’ll know that saving can allow them big purchases in the long run. They’ll also know about the significance of investment and how it should be a part of your financial plan.
Instilling good financial values
If we teach our kids that government takes a part of our earning to spend on infrastructure, education, healthcare, and for managing the whole economy, they’ll know the importance of taxpaying and will emerge as responsible tax payers.
If we want to see our kids grow up to become proud Canadian tax payers, starting from the bottom is a must. Watch this space to know how to explain complex tax terms to your kids. For habits that are formed earliest, stay with us the longest.