Common Mistakes to Avoid Filing Your Tax Return in 2021

 Filing a tax return in 2021 may be more confusing than the previous years as it is not simple enough to determine the taxable income one needs to pay in 2021. Covid-19 is one factor that is responsible for the complications involved in the computation of taxes this year. Different mistakes can be made with tax filing this season due to complicated calculations for taxpayers. However, three possible mistakes can be committed by you as a taxpayer in 2021, and you need to avoid them to maintain your goodwill as a taxpayer and avoid any penalties from the CRA (Canada Revenue Agency). Here are some common mistakes you need to avoid as a taxpayer in 2021:


  1. Missing the Tax Deadline: The CRA was clement in 2020 as the health crisis interrupted tax preparations; hence, it became mandatory to give taxpayers relief by granting them tax filing and tax payment deadline extension. You have to pay your taxes by April 30 this year to avoid any penalties. As a self-employed individual or a common-law partner, your tax-paying deadline is June 15, 2021. It is advised that you do not file your returns late and delay the payments of refund, benefits, and credits.


  1. Including the Covid-19 Benefits: Recipients of Covid-19 emergency or recovery benefits in the last year might include specific taxable benefits, and one of those is CERB (Canada Emergency Response Benefit). It was the benefits offered in the past; hence, you cannot claim for it anymore


  1. No Claiming for Available Deductions: Countless Canadians worked from home or did remote work in 2020. If you are one of those Canadians and bear expenses while converting home spaces to workstations, you should claim a home office expense deduction. Not claiming for it will be against your favour. By claiming one of these available deductions, you can reduce your taxable income.


If you want to maximize your money while filing your tax return, you should avoid committing the preceding three blunders. However, these are not the only mistakes you might commit with your tax filing; you can make more mistakes. Therefore, it is suggested to you hire a reliable tax consultant who can help you with filing your tax return without errors to make sure you do not get penalized and sustain your goodwill also.


Conclusion:-


Filing a tax return on time is vital for maintaining your reputation as a timely taxpayer to the CRA. Tax filing is complex this year, in contrast to 2021. You might make the following three common mistakes with tax filing this year:


  1. You may miss the tax deadline and become deprived of refunds, benefits, and credits.

  2. You may wrongly claim for Covid-19 benefits this year.

  3. You may ignore making the most of the available deductions.


These are some common mistakes that you can commit as a taxpayer in 2021, but you can avoid making them if you approach a reliable tax advisor to help you make your tax payments while saving your money on taxes also.


GTA Accounting (https://www.gtaaccounting.ca/) is an accounting firm that offers top-notch accounting & bookkeeping services for small business owners in Mississauga, Toronto, and Oakville at a fair price.

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