Sprucing Up On Your Tax Knowledge
It is surprising just how many people figure that they have a good handle on the requirements for their tax filing. Yet there are thousands of taxpayers that end up doing their taxes wrong or end up losing some potential savings because of their wrong assumptions. There are some very common tax issues that you should be aware of and ones that can cause you problems if you don’t.
Do you need to keep your receipts and records and if so for how long with the way that we do taxes now on line a lot of our documents receipts don’t have to be sent into the CRA that doesn’t mean that they’re not going to ask for them and that you must be able to produce them to back up your tax filing. You have to keep these documents and receipts for at least six years from the year of filing taxes that pertain to them
More people are starting to take advantage of their medical expenses compared to what they used to. However a lot of times they are will claim medical expenses that the CRA will deny. When it comes to medical expenses such as the dentures and implants or those related to laser eye surgery then most likely they are going to be covered, however if you’re trying to claim the purchase of your blood pressure monitor because your doctor wants you to monitor this at home don’t be surprised to find out that it’s not classed as an eligible medical expense.
When it comes to the deadline for filing most people are certainly aware that April 30 is the deadline filing date.
There are many people that have taken money out of their RRSP to buy a house and they are forgetting that they only have a certain time period to pay this back. Often they get misled as to when this is and they miss the deadline. You actually have up to 15 years to repay the money and a certain amount has to be repaid annually each year. If you don’t make the required annual payment then you have to calculate what the difference is between what you paid and what you should’ve paid and include this difference on your income tax return.
These are just a few of the common stumbling blocks the misconceptions of that you can easily fall into that can really mess up your tax return. Rather than have to deal with all of that the easier solution would be to seek out a good quality accountant to do your taxes for you.