Filing income taxes can be overwhelming due to some technical oversights which many tax payers fall prey to. Becoming aware of some avoidable mistakes will save you from possible chaos with the tax authorities in future.
The 3 common mistakes to avoid include;
NOT FILING AT ALL
Whether you are unemployed, a student, young adult or stay-at-home parent – as long as you live in Canada, you should always file your taxes. If you fail to do so, you may be restricted from claiming certain tax credits and benefits that taxpayers are entitled to. Some of these benefits are; Canada Child benefit, GST/HST credit, and even provincial credits like the British Colombia Climate Action tax credit.
NOT INCLUDING ALL OF YOUR INCOME
If you are making extra cash from renting out a room in your house, driving an Uber, or earning online, you have to declare your self-employment income for tax purposes. One sure way to avoid omitting any income is by having all of your financial records in order before filing.
GETTING RID OF SLIPS AND RECEIPTS
The importance of keeping all your slips and receipts handy cannot be overemphasized. Receipts for expenses like childcare expenses, medical expenses, charitable donations, tuition fees, or any other expenses related to a claim you’ve made are VITAL.
Wondering how long you should hold on to your receipts as an individual? The CRA requires you to keep seven years’ worth of records on hand.
What’s our solution?
The easiest and safest way to avoid defaulting is to get professional help. You can easily register and have our tax experts review your documents, prepare and file your tax properly and promptly. This way you can avoid any penalties by the CRA. By filing with EMCA, you can get as much refunds as you’re entitled to.
Get started with filing your tax returns today for as low as $49.9.