Here’s how to get your tax refund all year long

Tell taxman your expenses up front and reduce tax withheld at source monthly The primary tax benefits of an RRSP contribution are an immediate deduction for the amount contributed and the potential for the funds to grow tax-sheltered while inside the plan, accumulating a tidy sum to be used for retirement.

What excites most people, however, is the prospect of getting a big, juicy tax refund. And there is an easy way to get that tax refund essentially “in advance.”

I’m consistently amazed that Canadians rush to get their taxes filed early so they can get their hands on a refund. After all, a refund is simply a sign that you have loaned your hard-earned money to the Canada Revenue Agency for a year or longer and you’re just getting it back, interest-free.

If you’re an employee who is subject to tax withholding at source, and you make an RRSP contribution annually, there’s an easy way to get that tax refund throughout the year. Complete CRA Form T1213, Request to Reduce Tax Deductions at Source, in which you list various deductions that you plan to take when you file your 2014 return, such as your RRSP contribution, support payments, interest on money borrowed for investment or business purposes or child-care expenses. This form must be mailed to the CRA and, once it’s approved, you will receive a formal authorization letter that you submit to your employer, authorizing it to reduce the amount of tax withheld at source from each remaining paycheque in 2014.

You may also wish to revisit your Form TD1, Personal Tax Credits Return, which is filed with your employer. This form would have been completed when you first started working but you may have forgotten to update it along the way. For example, if you got married or started living common-law recently, you may be able to claim the spouse or common-law partner amount up to $11,138, provided your spouse or partner’s income will be below $11,138 in 2014.

If you’ve had a child born in 1997 or later, you can claim $2,255 for each child that resides with you throughout the year. The return also includes the disability amount of $7,766 if you are entitled to claim the disability tax credit for 2014.

The TD1, along with its provincial or territorial equivalent, should be submitted to your employer as soon as possible so that your tax deductions at source may be reduced for the balance of 2014.

By using one (or both) of the above two methods, you can effectively get your tax refund paid to you throughout the entire year rather than having to wait until next spring for that refund.