The tax filing season might seem like the distant future, but that does not mean you cannot start preparing. A lot of people choose to go over their taxes by themselves, which can lead to minor mistakes with significant consequences. Here are some of the most common mistakes people make when filing their taxes.
Not Asking for Help
Filling your tax report is no walk through the park. The task is time-consuming and can be exhausting. If you cannot manage to complete the report on time, don’t be ashamed about asking for help. It is a much better option than paying the penalty for missing the deadline. Click here to check out Faris and his team of experts.
Not Meeting the Deadline
The deadline for tax returns is on April 15th. You should not wait until the 14th. If you don’t submit on time, the Canadian Revenue Agency (CRA) has the right to claim 5% of your balance and an additional 1% for every month you’re late. They have the right to take 10% and 2% for every month if you procrastinate multiple times in 3 years.
Not Claiming Transit Passes
If you want to save some money, start commuting with public transportation. If you travel enough times in a month and your age does not disqualify you from eligibility, you have the right to claim transit passes.
Not Sending the Proper Receipts
One of the most common mistakes when filing taxes is to misplace a receipt. When asked for a receipt Canadians often send the wrong one: the dates are mismatched, or people send invoices instead of official receipts.
Not Fixing Mistakes
Realizing that you made a mistake only after sending the report happens more often than we’re willing to admit. You can request to make changes in your tax return. However, prepare all the supporting documentation which supports your claim. You’ll need to submit them as well.
Don’t Hide from the CRA
Don’t forget to add your whereabouts and other contact information to your tax report. The CRA might try to contact you for some additional information, and there is no need to hide from them. If you give them the silent treatment, they might do the same if you submit any changes which could benefit your bank balance.
Claiming Expenses You’re Not Eligible For
We all would claim all the expenses if we could. We cannot, but that does not prevent some of us from trying. Claiming everything is a pointless move, and time-consuming as well. However, if you are not sure if you’re eligible, give it a try. You won’t believe some of the claims the CRA received and approved.
The Final Word
Tax filing season can be a stressful period of the year. The CAR reported how many Canadians make the same mistakes each year. Not meeting the deadline, hiding from the CAR, not sending the receipt and not claiming on some breaks are pretty common mistakes. If you think this is too much for you or cannot manage it because of other responsibilities, turn to professionals for help.