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

Penticton bylaw officers tore down a “pretty significantly sized” homeless camp underneath the bridge near Riverside Drive Friday, April 16 morning. (Brennan Phillips - Western News)
Penticton bylaw tears down ‘significantly sized’ homeless camp under bridge

Many residents had made complaints about the camp before it was torn down

Through their Simple Generosity campaign, Valley First has pledged to donate $1 million of community support to British Columbia communities in 2021. (Contributed)
Valley First rewarding Penticton families with innovative way to thrive together

Participants with ‘inspiring ideas’ will receive a surprise for their family, valued at up to $2,500

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

Ryan Upson’s first BCHL hat-trick propelled the Vees to a 7-1 stomping of the Cranbrook Bucks Thursday April 16) night to improve their record to 7-1-0-0 in this abbreviated pod season. (Cherie Morgan/Cherie Morgan Photography)
Pentiton Vees bounce back with big win over Bucks

Vees score five in under five minutes, win 7-1 over Cranbrook

Black Crow Cannabis is just one of Vernon's many pot shops now open in town. (Jennifer Smith - Morning Star)
Kelowna has highest cannabis fees in Okanagan

Vernon’s 14 stores pay second highest business licence fees

Flow Academy is located at 1511 Sutherland Avenue in Kelowna. (Michael Rodriguez - Capital News)
Black Press Media Weekly Roundup: Top headlines this week

Here’s a quick roundup of the stories that made headlines across the Okanagan, from April 11 to 16

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after making comments to a harm reduction advocate Sunday, April 11. (Screen grab)
VIDEO: Vancouver officer convicted of uttering threats under watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to a harm reduction advocate

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

Ford F-350s have been targeted in the North Okanagan by auto thieves since February 2021, Vernon North Okanagan RCMP data shows. (Gene J. Puskar - The Canadian Press/AP file)
Auto thieves target older Ford F-350s in Vernon: RCMP

Vernon Mounties remind all motorists no vehicle is immune to auto crime

The Nautical Dog Cafe at Skaha marina is getting its patio ready in hopes Mother Nature will provide where provincial restrictions have taken away indoor dining. (Facebook)
‘A lot of instability’: B.C. restaurants in layoff limbo

As COVID-19 cases stay high, restaurants in British Columbia are closed to indoor dining

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question during a news conference on Parliament Hill in Ottawa, Tuesday, Aug. 18, 2020. THE CANADIAN PRESS/Adrian Wyld
Expectations high as Trudeau Liberals get ready to unveil first pandemic budget

The Liberals will look to thread an economic needle with Monday’s budget

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
RCMP intercept vehicle fleeing with infant taken from Kamloops hospital

The baby was at the hospital receiving life-saving care

Vernon North Okanagan RCMP were present at the McDonalds in Armstrong Thursday, April 15, 2021. (Tomer Joury - Facebook)
Police handle ‘high-risk’ situation at Armstrong residence

A woman was apprehended and taken to hospital under the Mental Health Act; no charges laid

Since April 4, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived. (Phil McLachlan/Capital News)
Vancouver the largest source of domestic flights with COVID-19 cases: data

This month alone, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived

Most Read