How to Use Your Last Paycheque Stub From 2010

Following up on last month’s column, there were many enthusiastic readers who wanted to get a jump start on their taxes and focus on skiing this winter! Here are some answers to the most asked questions and concerns:

If you can’t wait until you receive your T4’s arrive to get started on your 2010 tax return, and you want to determine the amount of your final RRSP contribution for 2010 (the deadline is March 1) or to find out if you will be owing taxes or receiving a refund, you can use the year-to-date (YTD) totals from the last cheque stub you received in 2010.

If you are paid semi-monthly then your last pay stub will be dated December 31, if it is bi-weekly then it will most likely be dated December 24. If you had more than one employer during the year, then use the YTD total from the last pay cheques you received and add them up to determine what your total earnings were for 2010. If you are expecting more than two T4s, you may want to wait until you receive them since this exercise could get a little tedious. If you have moved, make sure to provide your new address to previous employers now, this is very important or your T4 will be mailed to your old address!

Please be aware that your YTD totals may be different from your actual T4s. Most
employers use accounting software to prepare your pay cheques so this shouldn’t happen,
but you never know!

Next, do some “Googling” for Canadian personal income tax preparation software.
The most popular ones are www.intuit.ca (QuickTax), www.udotaxes.com, and www.studiotax.com (it’s free). Enter your information and “presto”, you will have an idea of what you need to do!

For more information about taxes, there are a few websites that you may want to peruse on a day when the temperature is –18, the conditions are hard-packed, and there is no chance that you will want to be on the slopes … www.canadianfinanceblog.com, www.wealthwebgurus.com, www.moneysense.ca, www.tax-services.ca and tax-tips.ca.

I wish you all the best for 2011!