Why RESPs Are Better

As a parent, you want your child to have all the opportunities and things that you were never able to have yourself. So, this can include things like clothes, other luxuries and a college education. A college education is very important for your child, and a lot of parents are not able to send their children to college because they lacked the necessary funds for it. So, if you want to make sure that your child goes to college, you need to make sure to start saving and collecting money for it beforehand. Now, you might think of going to a bank and open a college savings account for your child, but we would advise against that. This is because there is a better way to go about this, and that is by opting for an RESP.

A registered education savings plan is a government initiative that allows families from all over the country to be able to open a savings plan for their child and contribute to it overtime and save money for their child’s education. There are companies like Knowledge First Financial that are under the government that help to provide RESPs to families, so you first need to find out which companies that are RESP providers fall in your area. Now, an RESP is better than a standard savings account for a number of reasons.

  • First of all, you do not have to pay any taxes for the amount of money in your RESP. So, no money is deducted annually, allowing you to be able to save properly.
  • The government also adds some money to your child’s RESP annually through different grants and funds as well. So, you get financial aid as well.
  • There is no fixed expiration for the plan. So, your child can start college immediately, or can start 10 years later and still have the money waiting for them in the plan.

Things You Should Know Before You File Your Tax Returns

Almost every year a cycle is repeated of taxpayers or filers running around trying to file their taxes and returns but often get so caught up with all the complex tax laws, even though these laws are present for the purpose of helping the filers in making the process of filing taxes easier. So if you want to make things easier for yourself, you should just go on the internet and look through all the details of tax returns and how it is supposed to be done.

There are a ton of guides and articles out there that will go a long way in helping you in making this hassle free. If you are someone who has never done this before i.e. filed tax returns then you are probably as clueless as ever because these are the things that we are not taught in school or college, these practical life things you learn with time and when you step into the professional life. With that being said, following are some of the things you should know before you file your tax returns, check them out below.

What is The Meaning of Filing Tax Returns?

The answer is fairly simple, filing taxes or tax returns is essentially a process in which the person is declaring their income earned along with the amount of taxes paid by them. This declaration is important so as to declare to the state government that you have cleared all your dues and have done your duty as the citizen of the country that you are living in.

Eligibility

Another thing that people tend to have trouble finding out is whether they are eligible for tax filing or not. In order to answer that, the government releases a schedule of income for reference from which you can figure out if you are eligible for filing taxes or not. Even if you are earning less than the taxable amount you can still be a tax filer and declare your income just so you are in the clear.