Errors You Don’t Want To Make When Filing Your Tax Return
Each year individuals that are doing their own tax filing desperately hope that the process will get easier. Yet each year it seems to get more difficult. This year when individuals were looking for their notice of assessments some may have not got it and when requiring this from the CRA they ended up getting a tax summary which can be quite complex to follow.
Aside from that there are common errors that many individuals make when filing their tax returns and these are going to create a red flag or end up with the CRA asking for further information for clarification. Some individuals are still under the old concept that if they didn’t have any income there is no need for them to file a report. What they’re forgetting is that they may be eligible for some of the credits and benefits that need to be filed for on their tax return. So the best suggestion here is whether you have income and not make sure you file your return.
If you’re not aware of it yet it is important that you do know that the CRA is going to become as fully automated as possible. This makes it really difficult for seniors or the handicapped or for individuals that are not computer savvy but it is going to become a fact of life. According to the CRA there will be lots of help that these individuals can go to help them with their tax filing, nevertheless is still an inconvenience from the old paper type simple tax return.
One of the mistakes that the CRA often finds with returns is that individuals do not report all of their income. There is a variety of reasons that this can happen. Some individuals don’t get all of the T4 slips in the mail on time and they may have forgotten about one and t they go ahead and file the return.
What they may not be aware of is the CRA also receives a copy of every T4 slip and they will line these up against what is being submitted by you. If after sending your return you realize that you forgot to include a T4 then you can do a change by going to your electronic account of the CRA. While the CRA may be forgiving for this type of mistake once or twice if you make the same mistake two times within four years then they could penalize you. If you have been messing around with your taxes over the last few years and you now want to come clean then you need to look into the voluntary disclosure program.
What used to be a common mistake is filing late whereas most people now try to file early because they want to make sure that they get all their tax incentives and credits. However, the same penalties still apply if you are late filing your return and this compounds interest and this is not a mistake that you want to make.
Make sure that you get into the habit of keeping all of your receipts and records. With the CRA going as automatic as what they are a lot of times you will not have to submit these documents but the CRA could ask for them at any point in time, and it’s absolutely imperative that you have them and are able to back up everything that you are reporting on your tax return.
If you really want to avoid all of the hassles that come with filing a tax return then hire a good quality a tax accountant who can look after this responsibility for you.