How to find tax money you didn’t know you lost

Pop quiz: what is the largest single expense you'll have over your lifetime? If you're thinking it's your home, your car, or your kids, you'd be wrong.  It's your tax bill.

Indulge us for a moment and think back to the year 1999…did you immediately think of your hair?  Yup, like you, we too were growing out "The Rachel". You were also most likely rushing home from work to watch "Who wants to be a millionaire", and dancing to the tune of Ricky Martin's "Livin' La Vida Loca", all while you basked in the glory of an overvalued tech portfolio. Life was good.

But wait! Who could forget when the Federal Department of National Revenue created the Canada Revenue Agency (CRA) - you do remember that one, right? Okay, probably a long shot, but why is that so important?

More than just a name change

According to Alan Rowell, President of The Accounting Place, although the change by itself may have appeared to be "no big deal", the effect on the Canadian taxpayer has been huge. Alan advises that being an agency as opposed to a government department means that CRA is not responsible to ensure that the correct amount of tax is paid; rather, they are responsible to ensure that at least the correct amount of tax has been paid within the legislative framework. You see where we're going with this?

Alan explains that there was a time when you might get help from the taxman, but that was when they were a government department and perhaps felt more loyalty to their "employer"- you the taxpayer. Now, they are a government agency; this means, you're on your own, folks!

Evidently, there is so much more to the name change - from Revenue Canada to Canada Revenue Agency - than meets the eye.

What you may not know about CRA

We have a self-assessing income tax system, says Alan, and herein lies the problem. What this means is that as long as you report all of your income and don't break any rules, it's correct as far as CRA is concerned; you get your notice of assessment back (and maybe even a refund), and cha-ching, you're running straight to the bank. Unfortunately, just because you received a clean assessment doesn't mean that the return was completed so that you paid the least amount of tax possible; you see, CRA is not obligated to tell you when you overpaid.

As Alan Rowell explains further, if you overpay in the current year, you will then likely keep overpaying year after year.  Perhaps more frightening, like many Canadians, you may have been over-paying for years. And here's why…

Not all tax preparation is created equal

Alan explains it like this: as a taxpayer, there are many legal ways for you to file a tax return. You can use a pencil and paper, or you can use the latest version of the tax software available at your nearest electronics store - and while the return may be "technically" correct, only one way will result in your lowest tax bill.

A CRA revelation

Indeed, according to Evelyn Jacks, Founder and President of The Knowledge Bureau and Canada's most trusted voice on tax matters, the secret you may not know is this: you can go back up to 10 years, in most cases, and adjust tax returns wherein you may have missed something.  And this might just mean your lowest tax bill ever — and ongoing. "If you've missed the disability amounts, for example, which in real dollars could be just under $2,000 per year over 10 years, well that's a big cheque," she says.

A  golden opportunity?

So now that you know the secret, what should you do? The best place to start, says Alan, is to gather up the last 10 years' tax returns and engage in what he calls a "tax recovery audit." This may also be referred to as a post-tax review, says Evelyn.  Review your life milestones over the past 10 years with your professional tax advisor - such things as your employment, investment, and health history - to uncover areas you may have missed. According to Evelyn, the most commonly missed items include your safety deposit box, medical expenses, disability amounts, capital losses from your investments, even carry-forwards from your tuition. Another item not to be overlooked, says Alan, is wasted deductions. In many cases, deductions and credits are elective and you can choose not to claim them and instead carry them forward to future years when it is more optimal for you.

Once completed, you can then work with your tax advisor to make the necessary adjustments. If you know what you've missed, you can write CRA a letter, attach supporting documentation, and ask them to adjust your returns; or download the form T1-ADJ from the CRA website.

In cash we trust

The benefits of engaging in a tax recovery audit are two-fold; firstly, it repatriates your hard earned money from the government coffers and puts it back into your bank account where it rightfully belongs (you earned it, right?). And secondly, it helps establish a strong foundation with your advisors, thus ensuring a tax-efficient plan going forward wherein you pay only the tax that you are legally obligated to pay and not a penny more.

And in these challenging economic times, we're all for those extra pennies. In a world of rising prices, tighter budgets, heavier debt loads, and volatile stock markets, being vigilant on your tax return is one of the best places to find hidden value and further your long-term wealth creation. In many cases, you'll find money that until today, you didn't even know you lost!

GoldenGirlFinance.ca is a free personal finance and education site for women.

Nothing contained herein is intended to provide personalized financial, legal or tax advice. Before implementing any financial strategy, you should obtain information and advice from your financial, legal and/or tax advisers who are fully aware of your individual circumstances.

How black licorice can help your digestion

You probably tried black licorice when you were a kid, and either loved it or hated it. Its sweet taste is distinct and has similar flavouring to fennel or anise. In fact, licorice candy often contains less licorice extract and more anise flavouring, but it's the extract - the remnants of boiled licorice root - that has many health benefits.

In Chinese medicine, licorice root is considered to have strong anti-inflammatory properties and is atreatment of a variety of illnesses, from stomach ulcers to diabetes. It is used to soothe coughs and sore throats, control blood sugar, balance hormones, heal cold sores, and treat eczema, asthma, flu, herpes, and hepatitis. Its also popularly used as a natural laxative, so it can help with constipation, and as an aid for digestive problems. According to the medical journal, Nutrition and Cancer , substances in licorice may even protect against carcinogen-induced DNA. Furthermore, research suggests that it may help inhibit tumor formations and kill cancer cells.

The three times people are happiest - you may be surprised

According to a new UK study involving Apple and the London School of Economics - reported by Hannah Thomas at Marie Claire - 
people are happiest when they are having sex, 
exercising, 
and visiting the theatre. 


Sure, the having sex part is a no brainer. The exercise part is a bit surprising; people are often pretty happy when they've finished exercising - your feel-good hormones are coursing through your body and you have a great sense of accomplishment - but the during part can be quite a struggle. And the theatre? Hey, I like theatre - but I only get there a few times a year, and I imagine only very few people make it part of their regular routine.

The study, which is largely based on updates, via an app, by 45,000 iPhone users regarding levels of contentment, also determined that people are happiest during midday on Christmas. I guess this is while you're still riding a high from opening a bunch of presents, but before the extended family has arrived? (No mention, though, of how non-observers of this particular holiday are feeling around this time.) People were also found to be very happy on bank holidays - a paid day off work is pretty universally seen as a treat - and generally happier on weekends.

And the unhappiest time? Around 8pm on January 31. No explanation for why this particular date was the least fun, but it's easy to speculate about the gloom and isolation that can set in mid winter. Further, working, commuting to work, and standing in line were found to be the least happy-making activities. No mention, though, of one of my all-time, least happy moments: when you're standing in line, during your commute to work, and someone cuts in front. It's a triple threat, in the worst possible way.


(Why happiness can add years to your life
More sex is the secret to a longer, healthier life)

Foods that make you hungrier

Put down that light yogurt, it may be making you fat. As it turns out, a number of foods that are commonly thought to be great for weight loss can actually stimulate the appetite. We spoke withMarjorie Nolan, R.D., National Spokesperson for the American Dietetic Association, to get the skinny on foods that can trigger hunger and sabotage your diet.

1. Light yogurt

The blast of sweet (often artificial) flavor causes the stomach to start producing gastric juices. With only four to six ounces of yogurt and no fat in a typical container, the body doesn’t have enough food to digest leaving the tummy rumbling for more.

Better choice: Nolan likes the creaminess and high protein content of plain, low-fat Greek yogurt. Add fruit and a sprinkle of cinnamon for flavor. If you choose the non-fat variety, add a tablespoon of sunflower seeds for crunch and satisfaction—the fat in nuts and seeds is slow to digest so a small serving keeps you feeling full.

[Related: The new Nordic diet: The next big weight loss trend?]

2. Puffed cereal with skim milk

The combo of skim milk and puffed cereal has too few calories to keep you energized for long. Many dieters reach for puffed cereal because it looks filling in a big bowl. However, the low fiber content leaves you wanting more soon after breakfast. Puffed cereal also has a high glycemic index, which causes blood sugar to drop after an initial boost of energy.

Better choice: Rolled or steel cut oats. Oatmeal is high in fiber, which makes it a satisfying breakfast. Add a spoonful of maple brown sugar if you need something sweet. Cooking your own plain oatmeal and adding a small amount of sweetener is much more nutritious than using pre-sweetened packets. Nolan likes to cook oats with low fat milk or stir in a tablespoon of peanut butter for even more stick-to-your-ribs goodness.

3. Big green salad with low fat or fat free dressing

The typical dieters’ lunch of a salad with low fat dressing can have a boomerang effect on the appetite. It’s full of fiber and visually filling but the low protein and fat content won’t satisfy for long. Stay away from fat-free dressings, which are loaded with sugar.

Better choice. Add three to six ounces of lean protein such as lean beef, chicken, or beans (the leaner the choice, the more you should eat) to your salad bowl.

4. Rice cakes

One rice cake=good, four rice cakes=overindulgence. And that’s about how many it will take to feel truly satisfied. Low in fiber with a high glycemic index, these classic diet snacks won’t leave your tank full for long.

Better choice: Spread a tablespoon of peanut butter or cream cheese onto a rice cake for a more balanced nosh. Or choose whole grain crackers with a spread or small portion of cheese for fiber and carbs plus protein.

5. Chewing gum

A little stick of gum is a stealth saboteur. While some chewing gum advocates say that it can stave off snacking, Nolan disagrees. She explains that the burst of flavor gets the gastric juices flowing. The act of chewing revs the digestive system even more, preparing it for a meal. If you want an express ticket to the all-you-can-eat buffet, chomp on some gum.

Better choice: We all have our munchy days, so if you are just looking for something to keep your mouth busy, air-popped corn or raw veggies are a safer bet.

6. Diet soda

Like gum, the sweet flavor wakes up the digestive process with no nutritional pay off which stimulates the appetite. Caffeine and carbonation may dampen your hunger pangs for a short time only to have them come roaring back along with an energy slump. If that’s not enough to make you rethink your daily fix, a study carried out by the University of Texas Health Center in San Antonio showed that people who consumed diet soda had a 70-500% increase of abdominal fat over ten years compared to those who didn’t drink diet soda.

Better choice: Drinking a hot beverage can slow down the appetite and allow you to think through your craving. Also, sometimes thirst signals are confused with hunger, so you may just need hydration. Non-caffeinated herbal teas won’t cause an energy crash.

7. Apple

Yes, apples are great for you—they contain lots of vitamins and fiber, but a single apple is not a balanced snack. If you don’t eat anything else with your afternoon apple, you may overeat at dinner.

Better choice: Apple with 5-10 almonds or a cheese stick. Spend a few more calories on your snack so you won’t be ravenous later

8. Low-calorie frozen entrees

Light frozen entrees contain little fiber and only about half the calories you will need to feel satiated. They are also loaded with salt. If you don’t have another option, look for a frozen dinner that contains 400-500 calories, 20-30 grams of protein, around 5 grams of fat, and 5-10 grams of fiber.

Better choice: If you are too busy to cook, Nolan suggests an “assembly based meal.” Roast chicken from the deli, a slice of whole grain bread, some salad bar vegetables, and a piece of fruit add up to a quick, healthy dinner.

9. Fat-free graham crackers or other baked goods

Nolan says people who are watching their weight tend to automatically reach for food labeled “fat free” on the package assuming it is more diet-friendly than the regular version. However, when manufacturers make fat-free foods, they often up the sugar content. Check the nutritional information on the back--the light versions sometimes contain more calories.

Better choice: Regular graham cracker. A small indulgence such as a graham cracker or square of quality chocolate keeps things interesting and won’t break the bank calorie-wise. Nolan points out that boredom is the enemy of dieters and causes people to fall of the wagon. “You are better off eating real food and more calories and feeling physically and emotionally satisfied than eating ‘diet food’ and being hungry in an hour.”

http://ca.shine.yahoo.com/9--diet--foods-that-make-you-hungrier.html