TORONTO —
When most people think about making a mistake on their tax return, their fears often revolve around checking the wrong box or missing key facts that might lead the Canada Revenue Agency (CRA) to audit them.
But, according to experts, the costliest tax mistakes made by Canadians are usually related to missed deductions and a lack of understanding about whether they need to file.
Here are five costly mistakes to avoid when putting together your return this year:
NOT FILING AT ALL
If you didn’t make a single dime during the tax year, failing to file a tax return will only leadto more money being left on the table.
“One of the most common mistakes is not filing because you don’t think you have enough income, or you didn’t have an income at all,” Lisa Gittens, senior tax professional at H&R Block, told CTVNews.ca by phone earlier this month.
“As long as you are living in Canada you should be filing.”
According to Gittens, students, young adults, stay-at-home parents and the unemployed are the most prone to this mistake, which prevents them from claiming certain tax credits and benefits that all Canadians are entitled to, regardless of their income bracket.
You can also claim things like medical expenses, educational expenses, and child care expenses if you didn’t make any income. And, as Gittens notes, the more expenses you can write off, the greater chance you’ll get a refund.
Gittens notes that it’s especially important for students to file their returns in order to build credit with the CRA.
“Many students don’t file because they have no income, but once they graduate and start earning income, they have no credit with the CRA,” she explained.
NOT CLAIMING MEDICAL EXPENSES
Medical expenses not covered by provincial health services or benefits plans are another commonly neglected area, especially for low- and middle-income Canadians.
“When your medical expenses are high in comparison to your income you get a medical expense supplement that refunds a portion of the medical expenses you claimed,” said Gittens.
This type of expense can include eye exams, dental expenses not covered by insurance, medical supplies and travel expenses. This year, certain cannabis products are now considered eligible for the medical expense tax credit, if you have a prescription.
From your total medical expenses, the eligible amount is 3 per cent of your income or the set maximum for the tax year ($2,352), which ever is less.
For future tax years, Gittens recommends completing all of your miscellaneous medical exams and yearly check-ups towards the end of the year to capitalize on the return and make it easier to organize your receipts.
“When you get all of those eye exams and dental exams taken care of at the end of the year the receipts are all there for you to claim on your taxes,” she said.
MISREPORTING INCOME FROM YOUR SIDE JOB
Whether you are making extra money by driving an Uber, hosting people at your Airbnb, or earning a little side cash online, you want to make sure you are recording those earnings as self-employed income.
“You’ll want to be sure that you’re also contributing to the Canada Pension Plan based on those earnings,” notes Gittens.
If you plan on claiming any expenses related to that income (i.e. expenses related to your vehicle, house, or travel expenses), make sure that you have the receipts to back it up.
MISSING INVESTMENT INCOME
Before filing, make note of your investment streams and make sure you have received a statement for each of them. These annual statements should show the total income you earned during the tax year and the total expenses incurred, such as investment advisor feeds (which are deductible).
“Income sometimes gets missed because people don’t understand how much they’ve earned on their investments each year,” Armando Minicucci, tax specialist at Grant Thornton, told CTVNews.ca by phone.
“This is generally the most common area where individual tax payers are reassessed.”
FILING TOO EARLY
The early bird doesn’t always get the worm, especially when it comes to taxes.
“Those early filers who are hoping to get their refunds right away tend to miss certain documents, whether it be T4’s from their employers or investment slips from the bank,” Michael Davis, senior tax specialist at H&R Block, told CTVNews.ca by phone.
Not only could this cause you to make an amendment to your return, it could put you at risk of incurring penalties for misreporting your income if you make a habit of it.
“If you fail to report the same kind of income in back-to-back years it could result in penalties,” said Davis.
April 30 is the last day to file your 2019 income tax return. If you owe the CRA money, it must be paid by this date. Otherwise, you’ll face a late-filing penalty and daily interest chargeson your balance.
If you are self-employed, you have until June 15 to file your return. But keep in mind that if you owe taxes, you’ll still be required to pay your balance by the April 30 deadline.
MONTREAL – One expert says entry-level pay under the tentative deal between Air Canada and its pilots could be a stumbling block ahead of a union vote on the agreement.
Under their current contract, pilots earn far less in their first four years at the company before enjoying a big wage increase starting in year five.
The Air Line Pilots Association had been pushing to scrap the so-called “fixed rate” provision entirely.
But according to a copy of the contract summary obtained by The Canadian Press, the proposed deal announced Sunday would merely cut the four-year period of lower pay to two years.
John Gradek, who teaches aviation management at McGill University, says as many as 2,000 of Air Canada’s roughly 5,200 active pilots may earn entry-level wages following a recent hiring surge.
After the airline averted a strike this week, Gradek says the failure to ditch the pay grade restrictions could prompt pushback from rank-and-file flight crew and jeopardize the deal, which is up for a vote next month.
This report by The Canadian Press was first published Sept. 18, 2024.
ROME (AP) — Salvatore “Totò” Schillaci, the Italy striker who was top scorer at its home World Cup in 1990, has died. He was 59.
Schillaci had been hospitalized in Palermo following treatment for colon cancer.
The Palermo Civico hospital said in a statement that Schillacci died on Wednesday morning after being admitted 11 days ago.
Schillaci scored six goals for Italy during the 1990 World Cup. He came on as a substitute during Italy’s opener against Austria, scored in a 1-0 victory, and went on to earn the Golden Boot awarded to the tournament’s top scorer. He only scored one other goal for Italy in his career.
Italian soccer federation president Gabriele Gravina announced that a minute of silence would be held in memory of Schillaci before all games in the country for the rest of the week.
“The uncontrollable celebrations, in which his face was the symbol of shared joy, will remain forever part of Italian soccer (history),” Gravina said. “Totò was a great player, a symbol of tenacious desire and redemption. … His soccer was full of passion. And that fearless spirit made everyone appreciate him and will make him immortal.”
Schillaci also won the Golden Ball award at the 1990 World Cup as the tournament’s top player ahead of Lothar Matthaus and Diego Maradona.
Schillaci played for Messina, Juventus, Inter Milan and Japanese team Jubilo Iwata during his club career.
“You made an entire nation dream during the Magical Nights of Italia ’90,” Inter said on its social media channels.
West Germany won the 1990 World Cup, beating Argentina in the final, while Italy beat England for third place with a winning penalty kick from Schillaci.
Roberto Baggio, who scored Italy’s opening goal in the third-place match, wrote on Instagram, “Ciao my dear friend.”
Having been born and raised in Palermo, the Palermo soccer team announced that it would hold a public viewing of Schillaci at its Renzo Barbera stadium ahead of the funeral, the Gazzetta dello Sport reported.
French soccer player Wissam Ben Yedder will stay free ahead of his trial on charges of sexual assault while intoxicated, one of his lawyers told The Associated Press on Wednesday.
Marie Roumiantseva said Ben Yedder will remain under strict judicial supervision after a woman filed a lawsuit for sexual assault earlier this month.
The 34-year-old Ben Yedder, a prolific striker in the French league, was briefly detained then released after the alleged incident in his car on the French Riviera. Ben Yedder had been stopped by police after he first refused to do so. He was then put in a jail cell.
After he was summoned to appear in court on Oct. 15 and placed under judicial supervision, the Nice prosecutor’s office appealed the decision not to remand the player in custody. The investigative chamber of the Court of Appeal of Aix-en-Provence did not grant this request and kept Ben Yedder under judicial supervision.
Ben Yedder attended a hearing Tuesday during which he offered to go to rehab. He has admitted he drove while under the influence of alcohol but has denied any sexual assault.
In a separate legal case last year, Ben Yedder was charged with “rape, attempted rape and sexual assault” over another alleged incident in the south of France.
Ben Yedder has been without a club since his contract with Monaco expired at the end of last season.
