Josee Cabral is seen in her office in Chateauguay, Que. on Thursday, March 25, 2021. THE CANADIAN PRESS/Paul Chiasson

Josee Cabral is seen in her office in Chateauguay, Que. on Thursday, March 25, 2021. THE CANADIAN PRESS/Paul Chiasson

Watch the details to help avoid financial headaches when filing your tax return

Small, easily avoidable mistakes could end up costing you if you’re not careful

The devil is in the details and your income tax return is no exception.

As the filing deadline at the end of the month approaches, experts say paying attention to the details when it comes to your taxes can help avoid headaches down the road.

Small, easily avoidable mistakes could end up costing you if you’re not careful.

Josee Cabral, a senior tax specialist at H&R Block, says the government extended tax deadlines last year because of the pandemic, but people need to know the filing deadline is back to normal.

“A lot of people this year, they think there will also be an extension, so they’re running late on filing their taxes, but there will not be an extension,” Cabral says.

“Unless there’s a major shut down again like we had last year in the month of March, the due date this year is April 30 like every other year.”

Cabral says even if you don’t have the cash ready to pay your outstanding tax bill, you should file your return on time otherwise you will have to pay an added late filing penalty.

The 2020 tax year for many Canadians will be different than previous years, with many suffering a drop in income due to the pandemic and millions having received emergency benefits on which they may now owe taxes.

For those lucky enough to have continued to work from home, Cabral says it will be key for them to understand how best to claim their work-from-home deductions, whether it is the special flat rate or itemized method.

Cabral says other common mistakes are missing out on credits and deductions on things such as moving expenses, interest on student loans, donations and medical expenses that can help reduce your tax bill.

“People forget to enter their medical expenses,” she says. “A lot of people say, ‘I don’t have enough’, but if you don’t enter them you’ll never know if you’re capable of getting a credit out of it.”

Cabral says your pharmacy will have a record of your prescription drug spending for the year and that you can ask for it before you start your taxes.

“They print out everything you bought in one year and they put it on one piece of paper. You don’t have to keep all those little slips every single time you go to the pharmacy and the dentist does the same thing too,” she says.

It isn’t just things related to your income and the deductions that you need to pay attention to.

In an age when many Canadians file their tax return electronically, accidentally using an old mailing address might not seem like a big deal, but it can lead to real problems if Canada Revenue Agency needs to follow up.

CRA spokesperson Paul Murphy says if the agency asks for supporting documentation for things like medical expenses or charitable donation receipts and your address is not up to date you might not receive the letter and you may end up having your tax return reassessed.

“We give you a time limit to respond and if you don’t respond on time, we may just assess your return based on the information on file,” he says.

Murphy says you also don’t want your notice of assessment — which includes your RRSP contribution limit and income information you might need if you’re applying for a mortgage — being sent to the wrong address.

Outdated banking information for direct deposit can also create problems if you’re expecting money back.

Murphy says if you’ve signed up for direct deposit, CRA will keep that information on file and continue to use it until you tell them not to or change it. So if you’ve changed banks, it is important to make sure CRA knows to use your new account.

“Sometimes people they go without filing sometimes for a period of time and they forget that they signed up for this service and they file their tax return and (a refund) gets deposited into a bank account that’s been closed,” he says.

“You can get your money eventually, but it takes some time and you probably don’t want that to happen.”

Cabral says the key to avoiding many of the common mistakes and maximizing your tax return is to be organized.

“Not being organized is one of the biggest common mistakes that people do,” she says.

“Have a file, have a folder that you keep for your year’s taxes and throughout the year whenever you receive something put it in that folder.”

Craig Wong, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronavirustaxes

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Welcome to your park sign marks the spot where 84th Avenue will continue east from King George Boulevard 
to 140th Street as part of a $13 million road project. (Photo: Tom Zytaruk)
Road Rage: Opposition mounts anew to Surrey’s plan for 84 Ave. south of Bear Creek Park

Same place, same project, same fight as Surrey prepares once again to connect 84th Avenue between King George and 140th Street in Newton

The Surrey Board of Trade has launched a new ‘Say Yes to the Vaccine’ campaign. (File photo)
Surrey Board of Trade launches campaign to promote COVID-19 vaccination

Vaccinations are the only solution to re-opening the econony, says board

The volume of visitors to White Rock’s Marine Drive over the weekend has led council to consider special measures this week. (Aaron Hinks photo)
White Rock council rejects resident-only parking for waterfront

Other health and safety measures to be considered in a special meeting Wednesday

The recently-formed Heron Hospice Society of Delta will offer compassionate end-of life programs for individuals and families experiencing grief and loss, and aims to support the recently reopened Irene Thomas Hospice, according to a release issued Tuesday, April 20. (Heron Hospice Society of Delta/Facebook photo)
New society to support hospice care in Delta

Heron Hospice Society of Delta “will embrace all end-of-life choices,” says president Chris Pettypiece

South Surrey’s Paul Cottrell, who works with the DFO, tows a grey whale out of Semiahmoo Bay Sunday. (Contributed photo)
Dead whale floating near White Rock towed to shore for necropsy

Animal has been dead since at least April 15

FILE – NDP Leader John Horgan, right, and local candidate Mike Farnworth greet one another with an elbow bump during a campaign stop in Coquitlam, B.C., on Friday, September 25, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. won’t be using random individual road stops to enforce travel rules: Safety Minister

Minister Mike Farnworth says travel checks only being considered at major highway junctions, ferry ports

Cash seized in a 2018 RCMP drug bust in the Lower Mainland. (Contributed)
Kelowna RCMP-led drug investigation nets charges for 4 in Lower Mainland

Cops seized 12 kilograms of MDMA and $380K executing several search warrants in the Lower Mainland in 2018

..
Abbotsford nurse at ‘breaking point’ pleads with public to take COVID-19 seriously

Instagram post urges general population to stay home, wear a mask and get vaccinated

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A native-to-B.C. wild queen bee (bombus melanopygus for those in the know) feeds on a periwinkle flower. (Submitted/Sarah Johnson, Native Bee Society of BC)
B.C.’s wild bees need messy gardens to survive

The year-long nesting period makes habitat a primary concern for wild bees

Westbound Highway 1 traffic near Herrling Island is backed up a long way following a vehicle incident. (Photo/Trish Dunbar)
Pedestrian killed in crash near Agassiz

Woman in her 50s struck by moving van

FILE – Health-care workers wave to people clapping and yelling thank you to the frontline workers during the 7 p.m.-tribute outside the Lions Gate Hospital in North Vancouver, B.C. Wednesday, April 8, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. nurses issue plea for all to follow health orders as hospitalizations spike

Nurses worried about strain COVID-19 is having on hospital capacity, care

University of Victoria rowing coach Barney Williams is photographed in the stands during the Greater Victoria Invitational at CARSA Performance Gym at the University of Victoria in Victoria, B.C., on Friday, November 29, 2019. The University of Victoria says Williams has resigned effective immediately. (THE CANADIAN PRESS/Chad Hipolito)
University of Victoria women’s rowing coach resigns by mutual agreement

Lawsuit filed last summer accused Barney Williams of verbal abuse

Most Read