The deadlines for filing your tax returns may seem far away, but the sooner you get it done, the sooner you can relax. Many Canadians opt for doing their tax returns themselves. However, making a mistake on your tax return can cost you dearly. So what do you need to look out for? Here are 10 common tax mistakes Canadians make every year.
Not paying your taxes on time
If you’ve already paid a late-filing penalty in the past three years, you will be charged 10% of your balance owing plus 2% for every month you’re late. Whenever you feel like you’re having to pay too much in tax, remember that there are several countries with higher income tax rates than Canada.
Claiming moving expenses that aren’t eligible
Claiming interest on student loans when it’s not eligible
Claiming tuition fees that aren’t eligible
Claiming medical expenses that aren’t eligible
However, you can't claim for everything that might seem like a medical expense. Expenses that aren’t eligible include medical practitioners – such as alternative health practitioners – that aren’t recognized by the applicable provincial authority, vitamins and supplements, over-the-counter medicine, rubbing alcohol, bandages and non-hospital beds.
Not claiming for eligible transit passes
The CRA says your public transit pass will also be ineligible if your age disqualifies you, if you haven’t made enough trips during a month, if there were interruptions in use and if you only travelled a limited amount during the period.