Handy Tax Return Tips

Canadians had to pay over $1 billion in additional taxes in 2012; primarily because what they reported on their tax returns didn’t match the dollar amounts provided by employers, financial institutions and other sources according to Canada Revenue Agency (CRA). 

In addition to collecting more tax dollars, the CRA will charge you interest, which is currently 5% on any overdue amounts; as well as penalties if you file your return late or under-report income repeatedly.

It goes to show paying attention to tax rules up front can go a long way to save you time, money and undue complications down the road.

Tax Tips to Avoid Costly Errors

Double-check you have included all income from all sources;

Compare information on tax slips to investment statements or other supporting documents to ensure accuracy;

If you are missing information, do your best to get it; estimate amounts when information doesn’t arrive in time to file;

Report all RRSP contributions, even If you are going to claim the deduction in a later year;

Determine if you are eligible for a deduction or credit before you claim it, (in 2012 CRA rejected one in five tax credits and/or deductions claimed);

Make sure your current address is on file with employers, financial institutions and the CRA so that you receive all tax slips and correspondence;

Be punctual – file your return by the deadline, which is April 30, 2014 for most taxpayers, and respond to any direct CRA correspondence within the required timeframe.

Hope these tips help when completing your tax return this year.  If you have any questions, talk to your accountant or give me a call.

Have a great weekend,

Tracey

 

 

 

 

 

 

 

 

Source:  Advisor.ca original article posted 03-20-14 by staff.  Jamie Golombek, CIBC Managing director, tax and estate planning