10 common tax mistakes to avoid

Listen to this Podcast


10 common tax mistakes to avoid

Every year, thousands of Canadians make errors when they prepare their income tax returns. These may go unnoticed — or they could result in an unexpected payment or penalty. Play it safe and avoid these common errors.

  1. Filing late. Be sure to file by April 30. If you owe taxes, you’ll pay a late-filing penalty of 5% of the tax owing plus 1% for each month you’re overdue, up to 12 months. You’ll also pay interest on the amount owing, plus on the late-filing penalty, starting May 1.
  2. Ignoring your partner. If you’re in a common-law relationship, you’re required to file as a couple. This can often be to your advantage.
  3. Lacking documentation. You may not need to provide certain slips or receipts with your return, but you do need to have them. Make sure they’re complete and ready to provide to the government if requested.
  4. Claiming moving expenses. If you’ve relocated your home to take a new job, run a business at a new location, or attend full-time post-secondary school, and are moving 40 km or more, you can claim a wide range of related expenses. However, if your new employer paid for them, you can’t claim those amounts as deductions on your tax return — and you’ll need to claim them as income.
  5. Claiming twice. Like moving expenses, there are other expenses you can’t claim if you’ve already been reimbursed. For example, if medical costs have been paid for by your insurer, you can only submit the remaining, unpaid amount as medical expenses.
  6. Mistaken medical expenses. Be sure to consult the list of approved medical expenses. Items that people often try to claim but which aren’t eligible include health plan premiums, gym memberships, birth control, blood pressure monitors, supplements or vitamins (even if prescribed by your doctor) and personal response systems.
  7. Misusing “other deductions.” This area is intended to capture allowable amounts not deducted elsewhere on your return, such as certain special instances with RRSPs, RRIFs and other types of pension plans. You can’t claim funeral expenses, wedding costs, legal fees or other non-allowable deductions.
  8. Claiming interest expenses on the wrong things. In general, you can only claim interest expenses if they were directly linked to an investment to earn an income. You can’t claim mortgage interest on your principal residence (if you’re not self-employed), for example, but you can claim it on your rental property.
  9. Claiming ineligible tuition fees. You can only claim tuition at recognized institutions.
  10. Not filing at all. In addition to possibly incurring hefty interest charges and penalties, you could be missing out on important tax breaks and the ability to accumulate RRSP contribution room.

At Carte Financial Group we have a team of tax experts to assist with complex situations. If you have any questions, don’t hesitate to contact your Carte Financial Advisor.

190 thoughts on “10 common tax mistakes to avoid

  1. Yuko Bernotas says:

    obviously like your web-site but you need to check the spelling on quite a few of your posts. Several of them are rife with spelling issues and I in finding it very bothersome to inform the reality then again I will certainly come again again.

  2. Gewerbeimmobilien says:

    whoah this weblog is great i like reading your posts. Keep up the great work! You know, a lot of individuals are hunting round for this info, you could aid them greatly.

  3. markham homes for sale says:

    Este site é realmente fabuloso. Sempre que acesso eu encontro coisas boas Você também vai querer acessar o nosso site e descobrir mais detalhes! informaçõesexclusivas. Venha descobrir mais agora! 🙂

  4. SMS says:

    I love looking through a post that can make people think. Also, many thanks for permitting me to comment!

  5. pacote vs sertanejo says:

    Hi there, just was aware of your blog through Google, and found that it’s truly informative. I’m going to watch out for brussels. I will appreciate if you continue this in future. A lot of other people shall be benefited from your writing. Cheers!

  6. cbd tincture says:

    I’m the owner of JustCBD Store label (justcbdstore.com) and I am currently seeking to broaden my wholesale side of company. It would be great if someone at targetdomain share some guidance . I considered that the most suitable way to accomplish this would be to reach out to vape companies and cbd retail stores. I was hoping if anyone could recommend a trusted web site where I can get Vape Shop International Sales Leads I am presently considering creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. On the fence which one would be the most ideal selection and would appreciate any guidance on this. Or would it be simpler for me to scrape my own leads? Suggestions?

  7. maeng da Kratom says:

    After looking over a handful of the articles on your web site, I truly like your way of writing a blog. I book-marked it to my bookmark site list and will be checking back soon. Please visit my web site too and let me know what you think.

  8. Clyde Timothy says:

    Good day! I could have sworn I’ve visited this website before but after going through a few of the articles I realized it’s new to me. Regardless, I’m definitely pleased I stumbled upon it and I’ll be book-marking it and checking back frequently!

  9. Tribe Of Dads says:

    Your style is so unique in comparison to other people I have read stuff from. Many thanks for posting when you have the opportunity, Guess I will just bookmark this blog.

  10. Linteloo herstofferen says:

    Hi, Neat post. There is a problem with your web site in internet explorer, might test this… IE still is the market chief and a huge element of other people will omit your fantastic writing due to this problem.

  11. Yago Mattress says:

    Can I simply just say what a comfort to find an individual who really knows what they are discussing on the web. You actually realize how to bring a problem to light and make it important. More and more people have to look at this and understand this side of the story. I can’t believe you’re not more popular given that you surely have the gift.

  12. E Backers says:

    You have made some really good points there. I checked on the web to find out more about the issue and found most people will go along with your views on this site.

  13. Coeur d'Alene family photographer says:

    Nice post. I was checking continuously this blog and I am impressed! Extremely useful information particularly the last part 🙂 I care for such info much. I was seeking this particular information for a long time. Thank you and best of luck.

  14. realtor Clemmons says:

    I like what you guys are up too. Such intelligent work and reporting! Keep up the superb works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my website 🙂

  15. Charleston wedding photographer says:

    obviously like your website however you need to check the spelling on quite a few of your posts. Many of them are rife with spelling issues and I to find it very troublesome to tell the truth on the other hand I¦ll surely come back again.

  16. Webs Noogie says:

    Right here is the right webpage for anyone who wants to understand this topic. You understand a whole lot its almost hard to argue with you (not that I actually would want to…HaHa). You certainly put a fresh spin on a subject that’s been discussed for a long time. Wonderful stuff, just great!

  17. Tic Tac says:

    I’d like to thank you for the efforts you’ve put in writing this website. I’m hoping to check out the same high-grade content from you later on as well. In fact, your creative writing abilities has encouraged me to get my own, personal blog now 😉

  18. Appliance Repair says:

    I was extremely pleased to find this great site. I wanted to thank you for your time for this particularly wonderful read!! I definitely appreciated every little bit of it and i also have you saved as a favorite to look at new things on your web site.

  19. Lawn Care says:

    I absolutely love your site.. Pleasant colors & theme. Did you develop this amazing site yourself? Please reply back as I’m wanting to create my own website and would love to know where you got this from or what the theme is named. Cheers!

  20. appareils says:

    I’m very happy to find this website. I wanted to thank you for your time just for this wonderful read!! I definitely enjoyed every little bit of it and I have you book-marked to look at new stuff in your web site.

  21. top techno music says:

    An outstanding share! I’ve just forwarded this onto a colleague who had been conducting a little homework on this. And he in fact bought me breakfast due to the fact that I stumbled upon it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanx for spending the time to discuss this topic here on your web site.

  22. GLR Fasteners says:

    You’ve made some good points there. I checked on the net for more info about the issue and found most people will go along with your views on this website.

Comments are closed.