​

Reader! This week was... well, let's just say it was a masterclass in adulting 😅. Katie and I spent a cozy weekend at home, tackling the never-ending mountain of housework, firing up the BBQ (because, let's be honest, who can resist a sunny day and the smell of grilled goodness?), and... studying 📚. Yes, you heard that right. We're both taking extra-curricular courses (there is no better investment than in oneself 😉). Let's just say it involves a lot of late nights, flashcards, and the occasional existential crisis. More on that later, if we survive!

But the real highlight of my week?

Paying a hefty personal tax instalment.

Now, I know what you're thinking:

"Robin, are you okay?"

And the answer is, surprisingly, yes!

Because here’s the thing: I much prefer paying a large lump sum than making regular instalments.

Why?

Because I firmly believe I'm a better allocator of my own funds than the government 🤷‍♂️. I can invest it, save it, or even splurge on a fancy coffee machine (priorities, people!).

Plus, there's something oddly satisfying about writing that big cheque and knowing you're done for a while. It's like crossing a finish line! 🏁

Speaking of finish lines, let's talk about the marathon that is tax season. It's a time when we all feel like we're running in circles, trying to keep up with the endless stream of paperwork and ever-changing tax laws. But fear not, Reader we're going to dive into this tax abyss together, armed with humour, insights, and maybe a few stress-busting tips... But just like we find a way to help even the most challenging patients, we can conquer tax season with a little knowledge and a lot of caffeine. ☕️

Tax Season: A Tale of Two Countries (and a Whole Lot of Paperwork) 📄

Whether you’re in the land of maple syrup 🍁 or the land of stars and stripes 🇺🇸, tax season is a universal experience. It’s a time when we all gather ‘round our computers, armed with receipts and a healthy dose of anxiety, to face the taxman.

I recently stumbled upon a great article from Edward Jones, specifically for my Canadian audience, that really highlights the intricacies of investment taxes. It’s a great reminder that it’s not just about income tax anymore, folks!

We’ve got capital gains tax, dividend tax, and even tax on interest income.

It’s like a financial alphabet soup, and we’re all trying to figure out which letters to eat.

For example, did you know that capital gains are only taxed on 50% of the profit?

That’s like getting a half-price deal on your investments!

And dividends?

Well, those get a special tax credit, which is like a financial pat on the back for investing in Canadian companies.

Now, let’s hop across the border to the good ol’ US of A 🇺🇸. Tax season here is a whole different ballgame. We’ve got the IRS, which is basically the financial equivalent of a superhero (or supervillain, depending on your perspective). And don’t even get me started on the complexity of the US tax code. I've also found a helpful article from US sources, to help you navigate this complex system.

But here’s the thing: whether you’re in Canada or the US, there are ways to make tax season a little less painful.

Tax Tips and Tricks: Because We All Need a Little Help 💡

1. Get Organized: This might seem obvious, but it’s the most important step. Gather all your documents, receipts, and tax forms in one place. Think of it as creating a financial first aid kit. ⛑️ For this I Use Xero and HubDoc​
2. Know Your Deductions: As healthcare professionals, we have access to some unique deductions. In Canada, you can deduct professional dues, continuing education expenses, and even some home office expenses. In the US, you can deduct medical expenses that exceed a certain percentage of your adjusted gross income. It's like finding hidden treasure! 💰
3. Take Advantage of Tax-Advantaged Accounts: In Canada, we have RRSPs and TFSAs, which are like financial superheroes that help us save for retirement and other goals. In the US, we have 401(k)s and IRAs, which are equally powerful. Use them wisely, and you’ll be on your way to financial freedom. 🦸
4. Don’t Be Afraid to Ask for Help: Tax season can be overwhelming, even for the most seasoned professionals. Don’t hesitate to seek help from a tax professional or financial advisor. They’re like financial therapists, helping us navigate the complexities of the tax world. 👩‍⚕️ This is especially important. Having a qualified accountant (Tyagi Group Accounting, Kevin Mouscos- My Professional Accountant) in your network is a game changer. They will find deductions you never knew existed, and save you from making costly mistakes.
5. Stay Calm and Carry On: Tax season can be stressful, but it’s important to remember that it’s just a temporary hurdle. Take deep breaths, practice mindfulness, and maybe even treat yourself to a massage after you’re done.

Why did the accountant break up with his girlfriend?

She was taxing!

Okay, maybe that joke wasn't the funniest, but I'm doing my best to make this an interesting read. And Katie, that joke wasn't about you

Real-Life Tax Tales: Lessons Learned the Hard Way 📖

Let me tell you a quick story about a friend of mine, let’s call her Dr. Smith. Dr. Smith was always too busy to deal with her taxes, so she just ignored them. One day, she received a letter from the IRS, and let’s just say it wasn’t a love letter. She ended up owing thousands of dollars in back taxes and penalties.

The lesson here?

Don’t ignore your taxes! It’s like ignoring a patient’s symptoms – it’s only going to get worse.

Tax Planning: A Year-Round Affair 📅

Tax season might be a once-a-year event, but tax planning should be a year-round affair. Here are some tips to help you stay on top of your taxes throughout the year:

• Keep Accurate Records: Maintain detailed records of your income, expenses, and investments.
• Review Your Tax Situation Regularly: Meet with your tax professional or financial advisor at least once a year to review your tax situation and make any necessary adjustments.
• Stay Up-to-Date on Tax Laws: Tax laws are constantly changing, so it’s important to stay informed.
• Plan for Major Life Events: Marriage, divorce, having a baby, and buying a house can all have tax implications.

Speaking of investing, have you checked out Blossom Social yet?

It's a fantastic platform for connecting with other investors and learning about different investment strategies.

And guess what?

Tax planning plays a huge role in investing!

Understanding the tax implications of your investments can help you maximize your returns and minimize your tax burden.

For example, knowing when to hold or sell an asset to minimize capital gains taxes is crucial.

​Blossom Social can be a great place to discuss these strategies with other investors and learn from their experiences.

Additional Resources:

• ​Lunch Money- (budgeting and expense tracking tool)- Use my referral link for a bonus!
• ​YNAB (You Need a Budget) -(budgeting software)
• ​Wealthsimple: (online investing platform) - Use my referral link for a bonus!
• ​Blossom Social: (social investing platform) - See What I'm Invested In

Tax season might be a challenging time, but it’s also an opportunity to take control of your finances. By staying organized, knowing your deductions, and seeking professional help when needed, you can conquer tax season and emerge victorious.

Remember, taxes are a part of life, but they don’t have to be a source of stress.

Robin Valadares,

​@financiallyfulfilledphysio​

​​​​​

Do you get value from these weekly emails?​
​America doesn't run on Dunkin, I run (walk) on coffee, keep me fueled up to keep writing by buying me a cup of coffee.
​
Share this email newsletter with a friend, colleague, or someone who you think would benefit. You'll put a smile on my face knowing that this material will reach more people and your friends, family, and colleagues will learn more about their financial situation and future!
​
Use this link to share: https://financiallyfulfilledphysio.ck.page/profile​