It’s almost the end of the year and you’ll want to gather up all your info so that come tax-time you’re ready. I have a file that I throw everything tax-ish into through the year, but lots of people don’t have a single thing organized.  While April is typically Tax Month, if you’ve been receiving a tax refund when you file, there’s something you need to do NOW!

I know it’s exciting when you fill out your tax return and find that the tax man is going to send you back a whopper of a tax refund. You want to get up and do a little dance, right? Well, you’re a dope. And here’s why. Since you’re getting a refund it means you PAID TOO MUCH TAX. That means you gave the government an interest free loan.

I’ve actually had people tell me that they like getting a refund because it’s “forced savings.” Are you kidding me? Savings on which you earn nothing for the year, while you struggle to come up with the money to achieve the goals you’ve set with yourself? You probably really like the Bank The Rest idea too, right?

Ya know what? If you want to be mindless about managing your money, there are lots of people who are willing to help you be mindless and make a profit off you at the same time. But if you’re tired of not being in control of your money, today’s the day to make some changes.

Here’s a form that very few people use, but is remarkably useful for keeping money out of the government’s hands: Form T1213. This form let’s you request permission from the Tax Man to have your employer reduce the amount of income tax taken off of your paycheque every month.

If you can demonstrate that you’re eligible for certain recurring deductions that will reduce your tax bill at the end of the year – you can trade in your tax refund for more take-home pay. Do you make monthly RRSP contributions by way of pre-authorized withdrawal? You’re eligible. How about child-care expenses? If you’re tithing monthly you can do it for your charitable donations. If you have rental losses, interest expenses on investment loans or carrying charges, those are eligible too.

Fill out Form T1213 and get the Tax Man’s approval and instead of paying extra tax and getting refunded, you’ll pay less tax on an ongoing basis so you’ll have more cash to use to pay down debt, build an emergency fund, save for your kids’ education, contribute to an RRSP, save for a downpayment on a home, whatever it is you want to achieve.

You’ll have to fill out the form and send it to the Tax Man each year. You can do it at any time, but the best time is in October or November for the following year. Once you’re approved, the Tax Man will provide instructions by letter to you, which you then give to your employer, who will adjust your pay for the remainder of the year.

Getting a tax refund may feel good, but when you think that the government has been using your money without paying a red cent in interest, you’ll realize that taking control is way more satisfying. Get the form, fill it out, and Keep Your Money!