Maximize Tax Savings with KWB Accountants & Advisors
Here’s a list of some things to avoid when filing your tax return.
Follow these tips; they could save you time and money!
Filing an income tax and benefit return even if you have no income
If you have no income to report, you should still file a return. You may be eligible for a refund and credits and benefits such as the goods and services tax/harmonized sales tax credit and the Canada child tax benefit.
Reporting all your income
When filing, it is important to make sure you report all your income from all your slips, such as T4s. Slips are prepared by your employer, payer, or administrator. You should have received most of your slips and receipts by the end of February. If you have not received, or have lost or misplaced a slip for the current year, you can ask your employer, or the issuer of the slip, for a copy. There is a good chance that your KWB tax preparer will have access to electronic copies of your slips via the CRA website. However, if you are missing information, use any documents you have and enter estimated amounts.
Filing late
If you have a balance owing and do not file your return on time, the CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing on the due date of your return, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. Even if you cannot pay your balance owing by the filing deadline, you can avoid the late-filing penalty by filing on time.
Missing out on new tax credits, benefits, and deductions
New credits, benefits, and deductions could be introduced each year, some of which may apply to your tax situation
Keeping receipts and records
Keep any receipts and documents for at least six years after you file for a particular year. If the CRA chooses to review your return, you will need to submit your receipts to support your claims.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.