Quick Tips: Avoid These Common MistakesWhen Filing at the Last Minute
It's common practice for people to wait until the last minute to file their taxes.Rushing through the process increases the risk of making errors that would delay your tax return, add interest to any unpaid taxes, or result in an audit.
Here are some tips to help you get your tax return in on time and error-free.
Mathematical errors
Mathematical errors such as making an incorrect additions on a list of expenses, transposition of digits, or adding an extra zero can prove detrimental when filling out a tax form.
2. Forgetting to include revenue
Forgetting to include revenue such as the home buyers plan, tips, small amounts of dividend or interest received, could lead to big trouble with the CRA. If the CRA has to adjust the tax form three times in five years, then you will be levied with a substantial penalty for failure to report income.
3. Not claiming deductions
Expenses paid to maintain a professional designation or trade license are deductible. Not claiming these deductions means you are overpaying tax. It’s best to keep all tax-related receipts in a tax file for each year to give to your accountant or tax preparer so that you don’t forget to claim all the expenses you are eligible for at tax time.
4. Not filing electronically
If you’ve never filed your taxes electronically, you’re missing out on many benefits. For one, it’s a lot faster and easier than paper filing. But more importantly, it’s more accurate. The CRA processes electronic filings much more quickly and efficiently than paper ones, so you’re less likely to make mistakes that could delay your refund.
We hope this helped you understand some of the most common mistakes people make when filing their taxes and how to avoid them.
If you have any questions about this, don’t hesitate to contact us. We’re always happy to help!
If you need further help or assistance. Always feel free to contact Fix My Books as we are here to help!