It is no secret that tax preparation may be difficult. After all, arranging your important receipts, tax slips, and financial papers takes time, and filling out your return is difficult. Taxes need meticulous calculations and study into income brackets, perks, and deductions. This post will look at the most typical mistakes people make on their tax returns in Canada. Check out comptable impôt ACCOTAX for more information.
Every year, Canadians are pressured to file their taxes correctly because they know that a mistake on their tax return might cost them money. At best, a mistake may result in a reduced refund or a greater payout. In the worst-case scenario, your tax return will raise red lights with the Canada Revenue Agency, prompting them to initiate a tax audit.
If you are anxious about filing your taxes this year, consider what typical errors to avoid and how to avoid them.
Not taking into account all sources of income.
You must record all sources of income on your tax return, not just the wages from your full-time work. Side jobs should be counted as self-employment income.
COVID-19 financial aid is another source of income to explore right now. You must include any EI, CERB, CRB, or other sort of emergency assistance you got to help you recuperate from income loss during the COVID-19 pandemic in your yearly income.
Forgetting to bring your paperwork
One of the reasons you should avoid rushing your tax file or beginning too close to the deadline is that gathering and organizing all of your data may take some time. You must obtain your pay stubs, tuition stubs, evidence of tips/gratuities, personal receipts, and other documents.
With the epidemic still in force, the CRA is urging Canadians to file their taxes online, which means you should have digital copies of all necessary documents. T-slips and tuition slips, for example, should be available in digital form. You may produce digital copies of your receipts using a scanner.
After you have finished filing, do not delete the copies. Save them and save them in a folder. It is always a good idea to maintain this information in case the CRA decides to conduct an audit.
Ignoring your research
You should conduct some study before filing. Otherwise, you risk missing out on significant perks and higher returns.
So, check into what potential deductions, credits, and costs you can claim. For example, you may be among the Canadians forced to start working from home in 2020. If this is the case, you can deduct your at-home work-related costs.