Tax Tip Thursday

There are a lot of old wives’ tales, myths, and “ideas” circulating about how things can go with taxes. I can’t count the number of times I’ve had someone come up to me and tell some story about what their friend told them or what they read online or what they heard somewhere, only to have it be a myth or very outdated! So today I’m going to share some of these, and we’re going to see how many of them you might have heard.

This could save you a lot of money!

Claim #1

“I don’t need to file a tax return because I don’t earn enough money to pay income tax.”

Is this true or false? This is a common one with people who don’t work a lot of hours.

Claim #2

“If you don’t have the money to pay your tax bill, there’s no point in filing before the April 30 deadline.”

Is this true or false? Keep in mind that the CRA will charge interest on any money you owe them…

Claim #3

“It’s too late to change your tax return once the CRA has processed it and sent you your Notice of Assessment.”

Is this true or false? If you made a mistake, can you fix it?

Claim #4

“I needn’t bother to claim any tuition-related tax credits because I didn’t make enough money to owe any taxes.”

Is this true or false? There are a lot of tax credits out there for students, and many of these students work very little or not at all. Should they still file?

Claim #5

“I can’t file my tax return until a missing T-4 turns up.”

Is this true or false? Was your employer late getting you a T-4? Can you still file without it?

Claim #6

“As a business, I can prepare my books/taxes from my bank and credit card statements.”

Is this true or false? Is that all you need to do your books and taxes?

Claim #7

“You can often make a deal with the CRA to pay less tax than you owe.”

Is this true or false? Is the CRA forgiving with taxes owing? Will they cut you any slack?

Looking for the answers?

Call us today and we’ll be happy to let you know how you did! You might be surprised at some of the answers…

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.