Although some people might agree to disagree, the Canada Revenue Agency says doing your taxes shouldn’t have to be difficult.
This tax season, CRA Spokesperson Sababa Hossain says the tax filing process will look a lot like last years’, however there are a few notable changes.
“Saving up for your first home is now easier than ever with the Homebuyers Plan. The change for this year is that the withdrawal limit has increased from $35,000 to $60,000. The withdrawal is tax-free, so you can have more money towards a down payment.”
She adds that “Airbnb’s are really big, so if you have a short-term rental that is registered in a municipality where it’s legal, you can also claim expenses associated with it.”
Forgotten income or deductible expenses are the most common mistakes that the CRA sees, but with a few online clicks, Hossain says tax returns can be easily altered to include new information.
“The most common things that we see that people forget are major life changes. If you’re moving for work or for school, you can claim moving expenses. If you’re paying for childcare to earn income or to go to school, you can also deduct those expenses on your return.”
On that theme, she reminds the public to keep your CRA account information up to date. Important details include your address, marital status, phone number, and banking information.
She adds that there are several ways to file your taxes, including via mail, but the easiest and most popular way to go is the online route. All taxes must be filed by April 30th.
If doing your taxes isn’t enough of a hassle, she adds that you also have to be on high alert for fraudsters.
“Now, we actually see scams where individuals are getting text messages, and it asks them to click a link, but the twist is, it contains their real name and social insurance number.”
If you receive a suspicious message, she advises you to use the BIRD method: meaning block, ignore, report and delete. Then, you should contact the CRA directly to determine if the message was legitimate.