Here at Roberts & Company Professional Corporation, we understand that filing your personal or corporate taxes can often be a little daunting. However, it does not have to be. In this blog post, we are going to look at some of the most common tax mistakes to avoid when preparing for your tax returns for yourself or your business.
Mismanagement of Supporting Documents
There are several documents that you may need to refer to or present when filing your taxes or preparing for an audit. These include income slips, receipts, quarterly tax payments, invoices paid by your customers, investment booklets, among others. It is therefore important that you make sure to carefully collect and file these documents throughout the year in preparation for tax season. An easy and effective way of doing this is by creating a filing system for yourself, using binders for physical documents and online storage for e-documents.
Forgetting to Update Your Personal Information
Important life events such as marriage or the birth of a child need to be reported. If you’ve recently relocated to the GTA following a union or a divorce, you should update your information as soon as possible; as these important events have a direct impact on your life in general, they also have a direct impact on your income and tax returns. Divorce for instance involves a reallocation of credits. You can log into your CRA account to access a portal where you can view or edit your personal information from the comfort of your own home and ensure that your information is accurate at all times.
Incomplete Income Declaration
When filing your tax returns, you must make sure to declare all your income sources, from high-powered full-time positions and casual part-time work while you go to school, to self-employment, property rentals, investments, and any other supplemental avenues that you use to help keep up with the rising costs of life in the Greater Toronto Area. To keep track of all your income streams, you can either keep a journal or use one of the many personal finance apps available for download. Still unsure as to what counts as an income source for your tax returns? Check out our personal income checklists.
Omitting Tax Deductions
You may be eligible for several tax credits that you are unaware of. For individuals, these include contributions to charities, medical expenses, and childcare expenses, among others. Businesses can also benefit from many deductions related to their cost of operations. Things like supplies, advertising costs, bad debt, utilities, and more can be claimed on your taxes provided that they are accompanied with an original receipt.To keep track of these credits, always make sure to document them and hold on to relevant receipts. Here at Roberts & Company Professional Corporation, our tax services also include personal tax planning to help you keep track of all tax deductions that you are eligible for.
Late Tax Returns
Filing your taxes late may result in a penalty. To avoid missing your deadline, set reminders for yourself weeks in advance. You may for instance either write down the due date in your planner or set a reminder on your phone. Not sure when to file? The CRA website has the answer for both personal taxes and corporate taxes.
Calculation Errors
In case of a calculation error in your document, the Canada Revenue Agency will place your return under review, which can cause delays in your tax refund payment. An easy way to avoid this is by using a good tax filing software.
Professional Corporate Tax Services in the Greater Toronto Area
Roberts & Company Professional Corporation, formerly Van Nostrand & Partner, has proudly been your one-stop shop for all your accounting and tax planning needs in the Newmarket, York Region and The Greater Toronto Area. Our goal is to help you minimize your taxation and help you receive your maximum return amounts thanks to our many years of experience and expertise.
Contact us today to learn more about our corporate tax services or to schedule a free consultation with us.