Ah, Spring. The snow is melting, the days are getting longer, the birds are singing – and your taxes are due! Every year, working Canadians must dedicate time during the wonders of spring to complete their taxes. Taxes must be filed correctly and on time, no matter who you are or what your circumstances might be.
The process of gathering documents, understanding tax laws, and filing a return can be overwhelming. But the good news is that there are many helpful resources for tax preparation. With some early organization — and guidance from experts — it is possible to make tax season less stressful.
Of course, there is always the option to become a tax preparation expert yourself!
In this blog post, we’ll share tips for a stress-free tax season and explain why you may want to consider a rewarding career as a professional income tax preparer in Canada.
What Is Income Tax & Why Is Tax Season Important?
Tax season is the time of year when individuals and businesses file their tax returns and pay any taxes owed — and it's incredibly important to file your taxes on time and accurately to avoid penalties. Filing taxes is a legal obligation.
In Canada, individuals and businesses pay taxes based on their income. This is called income tax. Because of our graduated tax system for individuals, the more income you earn, the more income tax you pay. This tax is typically deducted from your paycheques throughout the year — and at tax season, based on your income tax return, the government might ask you to pay more, or offer a refund if you’ve overpaid.
The Canada Revenue Agency (CRA) provides legal guidelines for filing taxes through the Income Tax Act, but filing taxes on your own can still be confusing. That’s why most Canadians solicit the help of an income tax preparer at tax season.
Tax Preparers are the first line of defence for Canadians looking for help with their taxes. These finance workers gather a client’s financial information and use it to estimate tax payments and returns. They work out what clients owe in income tax and advise them on ways to reduce this amount. Their main tax preparation duties consist of:
- Calculating tax credits, deductibles, and liabilities.
- Reviewing if tax reports are in compliance with government tax rules and regulations.
- Answering clients’ financial questions.
You usually have until the end of April to file your taxes. Here are some tips to make this tax season or the next a little easier!
Tips For A Stress-Free Tax Season
Tax season can be a stressful time for a great many people. However, with some preparation and organization, it is possible to make the process less daunting.
- Organize: Keep receipts for deductions in one place. This will make it easier to find the information you need when it’s time to file your taxes.
- Prepare: Review expenses and your lifestyle. Look for opportunities to claim a tax deduction!
- Start: Starting earlier rather than later is always a good idea; if you’re in a rush, you might make mistakes. If you’re planning to enlist the help of a tax preparation professional, reach out well before the deadline as their services are in high demand.
- Revise: Taxes can get complicated! Be sure to double-check your work, especially if you’re filing for yourself.
Tax Deductions For College Students
College students qualify for a few important tax breaks — ways you can reduce what you owe when you’re all done filing income tax. The CRA has listed common deductions and credits for students, especially:
- Childcare expense deductions
- Moving expense deductions
There are also tax credits that you can apply for as a student, including:
- Canada employment amount
- Interest paid on student loans
- Tuition, education, and textbook amounts
- Canada training credit
- Tax credits and benefits for individuals
Claiming all the deductions you’re eligible for relies on good organization and preparation throughout the year. Keeping track of tax credits and deductions can definitely pay off, significantly cutting down how much you owe in taxes — or even leading to a tax refund. Learning this skillset is useful on its own, but it also opens significant opportunities for employment as an income tax preparer.
Why You Should Become a Tax Preparer
Positions for tax preparers are in demand across Canada! No matter where you live, working people — and even retirees — are often in need of help preparing their personal income taxes. The tax preparation industry has been valued at $1.7B and could grow by 4% through 2023, despite financial experts forecasting a mild recession for at least half of 2023.
Sundance College’s Commerce: Accounting, Tax and Payroll instructor, Roger Hardie, MBA (Economics & Finance), notes that Tax Preparers have many career options. You might work for banks or financial services companies servicing clients, or the Canada Revenue Agency. Given the growth prediction of the tax preparer job market despite economic downturn, this occupation shows recession-proof demand!
Additional Benefits Of Choosing A Career In Accounting And Taxation
A career in Accounting, Tax, and Payroll gives you more than just an easier time during tax season. It allows you to build a career with:
1. Fulfilling and in-demand positions immediately after your studies and training: At Sundance College, we take pride in our students' success. Roger shared one of the recent success stories of his students: a graduate who was recruited for a tax job by MNP, one of the top Audit & Tax companies in Canada. Roger was particularly happy for this successful graduate as she had put in a lot of effort, it was good to see her reap the rewards.
2. Opportunities to advance into other accounting career paths: you can start as a Seasonal Tax Preparer and quickly move into bookkeeping or payroll positions at almost any business. You can start out at a financial services company in tax preparation and start working for a private company in their accounting and finance department!
It all starts with the right education. And after your success in a tax diploma and working in tax preparation — you can continue down the path, to accounting degrees and designations, if that is where your interests lie.
3. Competitive salaries: Pay scales for Tax Preparers sit well above average provincial minimum wages ($13/hr to $16.55/hr). Across Canada, tax preparers earn competitive hourly wages, at an average of $20.20 per hour or $42,016 per year. In Toronto and Vancouver, starting wages are more than $24.00 per hour! If you’re looking for ways to break into this industry, college education will help you stand out on a job application.
How To Become a Canadian Tax Preparer
If you’re interested in becoming a tax preparer, completing an education in tax and accounting — like the Accounting, Tax, and Payroll Diploma offered through Sundance College — is the best step to take. Here’s how a diploma education can help you launch your career.
Comprehensive curriculum: Tax preparation courses will teach you about taxable entities, the income tax act, principles of tax planning, and much more. They take a deep dive into all tax credits and specific conditions, as well as the procedural process of filing tax returns to avoid fines from the CRA. You will also learn how to file taxes using specialized software like QuickBooks.
Hands-on experience: A 5-week practicum finishes off your education and gives you the opportunity to exercise your tax preparation skills in a practical setting, as well as the opportunity to develop soft skills in workplace conduct, professionalism, and business administration.
Versatile training: Sundance College’s Diploma also includes courses in in accounting, bookkeeping, and payroll. By learning tax preparation with these key areas in business, you will be prepared for employment in bookkeeping, financial accounting, and payroll administration in addition to tax preparation. This equates to additional career opportunities with additional income opportunities.
Proof of competency: A tax diploma, such as Sundance College’s Commerce: Accounting, Tax, And Payroll Diploma demonstrates a graduate's job-readiness and competency in tax preparation. You will have the advantage of learning from CPA-standard tax preparation textbooks.
Accounting industry expertise: Our instructors are accomplished in their fields. In the CAPT program, our instructors have professional experience working as accountants and can provide insight on the industry, professional standards, and the practical application of course content.
Income Tax Preparation Courses And Learning Outcomes
Tax accounting is a unique field that differs from financial or managerial accounting. It requires knowledge of the Income Tax Act, sophisticated software, and strong people skills.
Career Opportunities Available To Tax Diploma Graduates
As mentioned, jobseekers with a diploma in tax and accounting will qualify for a number of tax preparation jobs, from working for financial services companies and banks servicing clients of these businesses, to the Canada Revenue Agency. Those with the interest and skills, could progress from preparing personal & business tax returns to solving complex tax issues and saving companies millions of dollars.
But that’s not all! Tax preparers require similar skills as bookkeepers and payroll administrators — which is why Sundance College teaches all three together. Graduates of our program are prepared for success in the following accounting related roles:
- Accountant Assistant / Technician
- Junior Accountant / Bookkeeper
- Invoicing & Billings Clerk
- Payroll Administrator
- Inventory Assistant
- Office Assistant / Coordinator
Enroll in Sundance College’s Tax Diploma Before Next Tax Season
If you enroll in our Accounting, Tax and Payroll Diploma program, your next tax season is sure to go a lot smoother! But there are other benefits you could reap; a rewarding and versatile career that can often be done from home, with great pay, and excellent job security!
CATP prepares students for successful careers in Tax Accounting with comprehensive training and support. Many of our graduates go on to work for top companies and make their mark in the industry. Others set up their own tax business and become successful entrepreneurs.
Roger is constantly inspired by his students’ success stories. His favourite part of teaching is watching his students discover their superpowers:
“Some of my students are Marvel heroes! Life gets thrown at them, but they keep at the course. When I see their technical knowledge underpinned by self-confidence and hard work, I know they have a strong trajectory ahead of them.”
If you’re interested in a career in tax preparation, consider enrolling in Sundance College’s income tax preparation course. Our Commerce: Accounting, Tax, And Payroll Diploma prepares you for much more than just tax season; it prepares you for a career path in the accounting and payroll fields. Contact us to learn more about earning your Diploma and starting your career in less than a year.