By Jasmin Brown

BDO Debt Solutions

It’s Tax Time!

Apr 1, 2024 | 1:41 PM

It is that time of year again. Time to file your income taxes. Anyone that has worked in Canada and must pay tax for the year or wants to claim a refund must file a tax return. By now, you should have all of the paperwork to file. The 2024 filing deadlines (for 2023 tax returns) are approaching:

· April 30, 2024 – for most Canadians

· June 15, 2024 – for self-employed Canadians

If you are getting a refund or your tax balance is zero, there are no penalties for sending in your return after the deadline. However, if you owe Canada Revenue Agency, you do not want to miss the deadline, as there are penalties for late filing and payments. Failing to file can also impact benefits and credits like GST or the Canada Child Benefit.

Common Mistakes When Filing Taxes

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The biggest mistake we see when it comes to taxes is a failure to file by the deadline – or a failure to file at all. This can prove very costly if you owe money to the Canada Revenue Agency. Some other common mistakes are:

· Claiming expenses that are not eligible

· Not claiming expenses that are eligible

· Missing investment income

· Failure to claim additional income (ie. tips, income from a side gig)

· Not maintaining the receipts to support your deductions

· Not keeping adequate self-employment records

Common Deductions & Credits

A tax deduction reduces the amount of income on which your calculate your taxes payable. Some common examples are:

· RRSP contributions

· Investment management fees

· Union or professional dues

· Eligible childcare expenses

· Eligible moving expenses

· Home office expenses

· Support payments made

A credit reduces the tax you owe or increases your tax refund. Some common examples are:

· Charitable donations

· Political contributions

· Medical expenses

· Tuition, education, and textbooks

· Interest on student loans

· Canada Workers Benefit

You may receive a refund once you file your taxes. It is important to note that this is not just “free money.” It is money that you earned and that the government is giving back to you. You will want to think carefully about how you spend it. If you owe the government for income tax, ignoring the debt is not an option. If you are unsure how to pay, contact Canada Revenue Agency and work with them on a payment plan. If your tax debt is leaving you feeling stressed, reach out to a Licensed Insolvency Trustee to discuss your options.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.