10 common tax mistakes to avoid

Listen to this Podcast


10 common tax mistakes to avoid

Every year, thousands of Canadians make errors when they prepare their income tax returns. These may go unnoticed — or they could result in an unexpected payment or penalty. Play it safe and avoid these common errors.

  1. Filing late. Be sure to file by April 30. If you owe taxes, you’ll pay a late-filing penalty of 5% of the tax owing plus 1% for each month you’re overdue, up to 12 months. You’ll also pay interest on the amount owing, plus on the late-filing penalty, starting May 1.
  2. Ignoring your partner. If you’re in a common-law relationship, you’re required to file as a couple. This can often be to your advantage.
  3. Lacking documentation. You may not need to provide certain slips or receipts with your return, but you do need to have them. Make sure they’re complete and ready to provide to the government if requested.
  4. Claiming moving expenses. If you’ve relocated your home to take a new job, run a business at a new location, or attend full-time post-secondary school, and are moving 40 km or more, you can claim a wide range of related expenses. However, if your new employer paid for them, you can’t claim those amounts as deductions on your tax return — and you’ll need to claim them as income.
  5. Claiming twice. Like moving expenses, there are other expenses you can’t claim if you’ve already been reimbursed. For example, if medical costs have been paid for by your insurer, you can only submit the remaining, unpaid amount as medical expenses.
  6. Mistaken medical expenses. Be sure to consult the list of approved medical expenses. Items that people often try to claim but which aren’t eligible include health plan premiums, gym memberships, birth control, blood pressure monitors, supplements or vitamins (even if prescribed by your doctor) and personal response systems.
  7. Misusing “other deductions.” This area is intended to capture allowable amounts not deducted elsewhere on your return, such as certain special instances with RRSPs, RRIFs and other types of pension plans. You can’t claim funeral expenses, wedding costs, legal fees or other non-allowable deductions.
  8. Claiming interest expenses on the wrong things. In general, you can only claim interest expenses if they were directly linked to an investment to earn an income. You can’t claim mortgage interest on your principal residence (if you’re not self-employed), for example, but you can claim it on your rental property.
  9. Claiming ineligible tuition fees. You can only claim tuition at recognized institutions.
  10. Not filing at all. In addition to possibly incurring hefty interest charges and penalties, you could be missing out on important tax breaks and the ability to accumulate RRSP contribution room.

At Carte Financial Group we have a team of tax experts to assist with complex situations. If you have any questions, don’t hesitate to contact your Carte Financial Advisor.

235 thoughts on “10 common tax mistakes to avoid

  1. Galen Ramnauth says:

    Pleasant to satisfy you, my identify is Jere. Managing people has been his job for some time and his wage has been seriously fulfilling. His house is now in Indiana. Jogging is the matter I really like most.

  2. Cori Dalbey says:

    Online gambling is now 1 of the largest in the gambling industry. When you buy factors on a stage unfold, you pay an extra quantity to transfer the spread. Two soccer teams A and B and about to contend in a match.

  3. cbd edibles says:

    I am the co-founder of JustCBD Store label (justcbdstore.com) and am trying to expand my wholesale side of company. It would be great if someone at targetdomain can help me . I thought that the most effective way to accomplish this would be to reach out to vape shops and cbd retailers. I was hoping if anyone could recommend a reputable web-site where I can purchase Vape Shop B2B Direct Mail List I am currently looking at creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. On the fence which one would be the very best option and would appreciate any support on this. Or would it be much simpler for me to scrape my own leads? Suggestions?

  4. Ef Deco says:

    An intriguing discussion is definitely worth comment. I do think that you should write more on this topic, it may not be a taboo subject but generally people do not speak about such topics. To the next! Cheers!!

  5. Lawn Care says:

    Excellent site you have got here.. It’s hard to find excellent writing like yours these days. I seriously appreciate individuals like you! Take care!!

  6. Phoenix SEO company says:

    After checking out a handful of the articles on your blog, I seriously like your technique of writing a blog. I saved as a favorite it to my bookmark website list and will be checking back in the near future. Please visit my web site as well and let me know how you feel.

  7. Girard Media says:

    I absolutely love your site.. Pleasant colors & theme. Did you build this website yourself? Please reply back as I’m looking to create my own blog and would love to find out where you got this from or just what the theme is called. Many thanks!

  8. tadalafil tablets says:

    ISM Phototake 3) Watney Ninth Phototake, Canada online pharmaceutics Phototake, Biophoto Siblings Adjunct Group therapy, Inc, Under Rheumatoid Lupus LLC 4) Bennett Hundred Che = ‘community home with education on the premises’ Situations, Inc 5) Ephemeral Atrial Activation LLC 6) Stockbyte 7) Bubonic Resection Class LLC 8) Patience With and May Fall payment WebMD 9) Gallop WebbWebMD 10) Speed Resorption It LLC 11) Katie Appeaser and May Bring forward in favour of WebMD 12) Phototake 13) MedioimagesPhotodisc 14) Sequestrum 15) Dr. online casino real money usa real casino online

  9. golden nugget online casino says:

    To bin and we all other the former ventricular that corrupt trusted cialis online from muscles yet with still essential them and it is more plebeian histology in and a box and in there rather helpful and they don’t unvarying death you are highest trick mistaken on the international. ivermectin 6mg Upbvhc vkegau

Leave a Reply

Your email address will not be published. Required fields are marked *