Filing taxes can feel overwhelming — especially for newcomers, freelancers, and small business owners. But even simple mistakes can lead to audits, penalties, or lost refunds.
Here are the top tax mistakes you should avoid to stay on the CRA’s good side and maximize your refund:
1. Missing the Tax Deadline
Filing late can trigger interest charges and penalties — even if you don’t owe taxes. The standard personal tax deadline is April 30, and for self-employed individuals, it’s June 15, but any taxes owed are still due by April 30.
✅ Tip: Set calendar reminders and file early.
2. Forgetting to Report All Income
Many people forget to report:
- Freelance or gig work (e.g., Uber, Airbnb, Etsy)
- Foreign income
- Investment gains
The CRA receives matching information from employers, banks, and other sources — so leaving something out may lead to an audit.
3. Incorrect or Missing Deductions
Failing to claim legitimate deductions — like home office expenses, moving costs, or childcare fees — means you’re paying more tax than you should. On the flip side, claiming ineligible expenses can flag your return.
✅ Keep receipts and work with a tax professional if unsure.
4. Not Contributing to RRSP or TFSA Wisely
An RRSP helps reduce your taxable income, while a TFSA allows your savings to grow tax-free. Many people either don’t contribute, overcontribute, or don’t use these tools strategically.
✅ Track your contribution limits carefully and plan ahead.
5. Mixing Personal and Business Expenses
If you’re self-employed, it’s crucial to keep your business and personal finances separate. Misclassifying personal expenses as business costs is a red flag for CRA audits.
✅ Open a separate business account and maintain detailed records.
6. Not Updating Personal Information
Moved? Changed marital status? Had a child?
Forgetting to update the CRA can result in missed benefits like the Canada Child Benefit or GST/HST credits.
7. Going It Alone Without Expert Advice
DIY tax software can work for basic situations — but if you have multiple income sources, a business, or rental property, one small error can cost you big.
At [Your Company Name], we help clients avoid costly mistakes and optimize their returns with confidence.
Final Word
Most tax mistakes are preventable with a little planning, organization, and expert guidance. Don’t leave money on the table — or risk penalties — by going it alone.
👉 Need help getting it right this year? Book a free consultation with our team today.
