Preparing your tax return can be a scary experience. For most, it's a headache and a time sink. But what if you didn't have to fall victim to the most common mistakes that most make when preparing their taxes? This not only saves you effort and time, but it can also assist you in getting your tax return done right and in an efficient manner.
If you reside in Edmonton and are in search of professional tax services, Duggal Professional Corporation is here to assist you.
In this blog, we will explore the most common errors to steer clear of when submitting your tax return in Edmonton. By learning from these mistakes and adopting a better-informed strategy, you can submit your taxes with ease and confidenc
1. Not Filing Your Tax Return on Time
This is also one of the most prevalent errors when making your Edmonton tax return. Most people are likely to forget to file taxes or feel that they don't have to file since they didn't make much money throughout the year. Nevertheless, the common date for filing taxes for most people in Canada is April 30th, except if you are self-employed, in which case it is June 15th. Your last date of payment in both the cases will be 30th April.
If you are late with this deadline, you may be penalized or charged interest by the Canada Revenue Agency (CRA). It is worth keeping these dates in mind and ensuring you submit your tax return on time. If you are not sure, think about using tax services in Edmonton to keep you on the right track.
2. Not Keeping Proper Records
Another common errors that individuals make while filing their tax returns is failing to maintain proper documentation. Receipts, invoices, and evidence of income are all important for filing your taxes accurately. Without them, it will be hard to substantiate your claims for deductions and credits, and this could lead to inaccuracies or even an audit.
Ensure you retain receipts for all your expenses that you will be claiming. Also, ensure that you possess your T4 slips (by your employer), T5 slips (for investment income), and other supporting papers. If in doubt about records to retain, tax filing Edmonton experts can guide you on what it will take based on your personal situation.
3. Overlooking Tax Deductions and Credits
Tax credits and deductions are among the most effective ways to lower your tax bill. Yet, numerous individuals neglect to claim them and leave money behind. A few of the more popular deductions are childcare costs, medical costs, and contributions to your Registered Retirement Savings Plan (RRSP). Tax credits on tuition or charitable donations are also worth considering.
You should also determine if you qualify for credits from the province of Edmonton. Alberta, and every other province, has designated credits that are intended to bring your total bill down. Without claiming them, you're only paying more than necessary.
With an Edmonton tax professional, such as Duggal Professional Corporation, on your side, you will be able to identify all your allowable deductions and credits, so you do not overlook your potential savings.
4. Misreporting Your Income
Another frequent error with great repercussions is incorrectly reporting your income. The CRA may alert you and audit you if you fail to report all of your income or have errors in the numbers. This will take time to receive your refund and may charge you a penalty.
Be sure to list all sources of income, whether it's a part-time job, freelance labour, or side hustles. Also, be sure to report any income made from investments, rental income, or business activities. If you are self-employed, keep in mind that you will need to report your income and any business expenses that accompany it.
Making sure your income is reported correctly could be difficult, but hiring tax services in Edmonton will keep you ahead of the game.
5. Filing With the Wrong Tax Status
It is simple to make the error of filing your tax return in the improper status. For instance, if you are married or common-law, you must file jointly, but if you are single, you must file singly. Being under improper status can determine whether you are eligible for certain tax credits and sometimes even land you owing more taxes.
It's always worth checking if you qualify for tax credits that relate to your own circumstances, for example, spousal credits or the Canada Child Benefit (CCB) if you have children. If you're not sure what tax status you're in, professional Edmonton tax filing services can assist you in filing correctly.
6. Not Filing for a Refund
If you've paid more taxes than you should have, you may be eligible for a refund. But a lot of people don't file their taxes because they believe they won't get anything back, or they don't claim a refund they are eligible for.
If you've had too much tax withheld from your pay checks, by filing a tax return, you can claim that refund. Even if you earn very little money, there are deductions and credits that could entitle you to a refund.
Don't leave money on the table! Simply file your taxes each year, even if you believe you owe money or are entitled to a refund.
7. Filing Without Fully Understanding Your Situation
At other times, people file their taxes without completely understanding their situation. For instance, you may not know that you are eligible for some tax credits, or you may fail to take advantage of tax-saving opportunities because you have not kept your receipts.
Before you file your tax return, take some time to gather all the necessary documents and understand your financial situation. If you’re uncertain about how to approach your taxes, it’s always best to consult with a tax professional in Edmonton. They can provide you with expert advice and make sure your taxes are filed correctly.
8. Failing to File When You Should
There are certain cases in which you need to file a tax return, even if you don't have to pay taxes. Furthermore, if you need to claim certain tax credits, like the GST/HST credit or the Canada Child Benefit (CCB), you must file a tax return.
Not filing when you are supposed to can impact your ability to get these benefits . So, even if you don't believe you need to file, double-check to see if you should be filing based on your income and individual circumstances.
9. Not Asking for Help When You Need It
Last but not least, one of the most valuable things you can do is seek assistance when you need it. Most people attempt to get through their taxes on their own, only to make unnecessary errors. Whether you don't know much about tax laws or just find yourself flustered, seeking the assistance of a professional can save you time, headache, and money.
Duggal Professional Corporation is a reputable name in Edmonton tax services, providing professional advice to help your taxes be filed accurately. Our professional staff can take care of the paperwork, give you tax-saving tips, and respond to any queries you have in the process.
Final Thought
Paying your tax return in Edmonton does not need to be stressful or confusing. Steer clear of these typical blunders and file confidently, knowing you're not missing out on any cash.
Keep in mind that organization, knowledge of your deductions and credits, and the proper assistance are all that it takes to make tax filing a breeze. If you need professional aid in tax filing in Edmonton, Duggal Professional Corporation is ready to assist you through the process and steer you clear of missteps that cost you.
Don't let tax season stress you out—get the proper assistance, file on time, and claim your maximum refund.
