Avoid These Tax Filing Mistakes and Save Yourself from Worry

We can all agree that tax is truly complicated. In fact, even for tax professionals, they, too, sometimes have a hard time dealing with taxes such as Dext and QBO. If you are new to Canada, there is a possibility that you will commit errors when filing your taxes. Most of these errors are not only hassle but costly too. You can avoid these errors by having knowledge and thorough understanding as to how Canadian taxation works.

In this article, we are going to discuss some of the mistakes committed by people when filing taxes. By knowing these things, there are a high chance of avoiding them and save yourself from hassle.

• Incorrect and/or missing information – Errors in reporting your income, double reporting, or failing to account for money received from a side gig are some of the most frequent tax errors. Yes, tips are subject to taxation. Significant penalties may be imposed for unclaimed income, and it may be expensive to omit certain information from your return.

• Missed opportunities – don’t you know that you are entitled for tax returns and deductions? You have to know that aspects allow you to deduct an amount from your total taxes or else you could be missing a lot of things. Many people take advantage of items or incidents that enable them to reduce their taxes. However, there are tax return mistakes you have to avoid too such as the following:

• Under-reporting income – This is a big NO. It is important to report all your income sources such as salaried income and the money you make from doing freelancing work or side hustles.

• Claiming expenses when it was already paid for – This is a common scenario in moving expenses. In most cases, the employer reimburse moving expenses, which usually happens to newcomers in Canada. If your employer happen to reimburse moving cost, you have to include this in your income tax return.

• Error in calculation – The chances of error in calculating taxes are high if you do it manually. It is best to take advantage of taxation software and most of them are readily available online.