Now that you have finished your taxes you can start planning for next year! Sounds crazy but we all know that taxes are part of life.

If you are getting a refund and haven’t already spent it….

• Consider using the refund for an RRSP contribution. This will give you another refund next year which again can be put into an RRSP. A nice cycle to start!
• If you have debts consider paying your debt off. If you are carrying debt you are losing money every month that you pay interest. For example, if you had a balance on store credit card where typical interest is 28.8% and were making only the minimum payments, you would end up over 5 years and paying double what you originally borrowed. Once the debt is paid use the monthly payment you have been paying towards RRSP’s or other savings.
• Consider putting a lump sum onto your mortgage. Depending on your mortgage agreement a lump sum maybe able to be made wothout penalty and will likley go directly onto your principle.

If you have to pay…..

• Look at your return and find out why you have to pay so that you can make arrangements to not pay next year. Consider putting money aside for next year’s taxes if you are self-employed or ask your employer to take more tax off.
• You may also want to look at ways of gaining deductions or credit throught 2008 to decrease the taxes you pay. RRSP’s, medical redit, transit credits, or child fitness credits to name a few.

Did you file your taxes early or leave them till the last minute?�