03/05/2024
Hello Ladies & Gentlemen;
Here is some important tax return news some may not know about....come & see me if you want your taxes done!
1 Not including income
Forgetting to include a T slip and income that you had during the year or making a deduction against your income that maybe weren't eligible to make is a common tax mistake, according to CRA.
That could lead the Canada Revenue Agency to reassess your tax return because there's a mismatch between the amount of T slips you reported and what the federal agency received on your behalf.
Then, you could end up with a smaller tax refund and have to pay money back or have a tax owing balance.
2 Not understanding tax brackets
If you don't make a lot of money or don't have any income at all, you might think you don't need to file your 2023 tax return.
But that's a mistake that you shouldn't make this year.
"Because of inflation, the government has chosen to increase the tax bracket so that we can just stay in the lower tax bracket,"
3 Not getting federal benefits
"Delaying the filing of your tax return can impact and delay benefit payments from the government," Ricchio said.
That includes the GST/HST credit, Canada Carbon Rebate (formerly the climate action incentive payment), and Canada Child Benefit.
"Those are all tied to your tax return," the tax expert shared. "You delay your tax return, you can delay your payments. You can stop your payments."
The CRA recently revealed that if you want to receive the Canada Carbon Rebate payment on time in April, you have to file your taxes more than a month before the deadline!
4 Not claiming tax credits
Canada has two types of tax credits: non-refundable and refundable tax credits.
Non-refundable tax credits can reduce your payable tax to zero but can't get you a refund if the total credits are more than what you owe.
Refundable tax credits can get you money back when it's more than the amount of tax due or if there's no tax due because the deductions have reduced it to zero.
"A non-refundable credit you go into the system when you're preparing your tax return and you make the selection to claim it,"
5 Not knowing claims and deductions
To avoid making mistakes on your tax return, I recommend having all your receipts in order — like for donations or contributions to RSPs, TFSAs, and FHSAs — and knowing about your eligible deductions.
"That is where a lot of the mistakes and the errors for most people happen," she said. "Sometimes they're kind of flying blind."
This also includes knowing what the CRA has changed for the 2023 tax year like the process for claiming home office expenses.
6 Not filing before the tax deadline
The deadline for filing taxes in 2024 is Tuesday, April 30 for most Canadians.
However, if you're self-employed, the last day to file taxes in 2024 is Monday, June 17. That's because the usual deadline of June 15 is on a Saturday this year.
Will add more educational information for those who wish to know more about the tax laws of our country.
