February is here, and the tax season officially kicks off on February 24 in Canada. For Brazilians living in the country, the deadline to file your income tax return is April 30.
That’s plenty of time to organize your documents and complete the process, right? However, as with any tax procedure, things don’t always go as smoothly as planned.
To help you navigate this period successfully, we’ve outlined three common mistakes that could impact your tax filing, cause issues with the CRA (Canada Revenue Agency), and reduce your refund, among other negative outcomes. Let’s dive in!
1st Mistake: Missing the Deadline
This is primarily an organizational issue, as the tax return filing period is fairly long, running from February 24 to April 30.
To avoid the risk of missing the deadline, start gathering your tax documents early, clarify any questions you may have, and aim to file your return within the first few days of the filing period.
By doing so, you’ll ensure compliance with Canadian tax laws, avoid penalties, and steer clear of issues with the CRA.
2nd Mistake: Failing to Report All Income
This mistake often stems from a misunderstanding of what needs to be declared. That’s why it’s crucial to familiarize yourself with the rules and criteria for tax filing before the season begins.
Your income, which must be reported on your tax return, includes all earnings, deductions, credits, and taxes paid.
Keep in mind that this applies not only to income earned in Canada but also to income from Brazil.
For example, if you own property, have shares in a company, or earn income fromremote work in Brazil, these amounts must be converted into Canadian dollars (based on the date of receipt) and included in your return.
3rd Mistake: Not Keeping Supporting Documents
This is another preparation issue. Your tax documents are essential for substantiating deductions and maximizing your refund.
For instance, how can you prove you spent “X” amount on a course without the payment receipts from the institution?
Make it a habit to save all receipts and invoices for services that could support your tax return.
This way, you’ll not only simplify the filing process and verify your expenses but also ensure you’re optimizing your refund.
Now that you know the most common mistakes in tax filing, you can count on Real Tax Canada’s specialized consulting services to streamline and simplify the entire process.
Our service is fully online. Simply fill out a quick form, send us your tax documents, and we’ll handle the rest!
Contact us and enjoy this convenience!
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About Real Tax
Real Tax specializes in accounting for small businesses, startups, and individuals. We assist Brazilian clients and individuals of other nationalities in Canada with income tax filing, business registration, payroll management, and more. Our bilingual team is ready to provide tailored solutions in both Portuguese and English.
Services not available in Quebec.
Would you like to hire our consultancy to file the Canadian income tax return in 2024?
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Real Tax Canada – Accounting Solutions for Businesses in Canada
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