TAX FAQs AND REASONS WHY YOU SHOULD HAVE A PROFESSIONAL DO YOUR TAX RETURNS

A recent report by Canada’s auditor general found almost 30 percent of the answers provided by CRA officials to questions from people were wrong. Some questions were more likely to get incorrect answers than others. For example, when asked when interest will begin to be charged on initial assessments, CRA officials gave the wrong data 84 percent of the time.

The income tax act increased from 6 pages in 1917 to 1,412 pages a century later. When you think how big the Income Tax Act has grown over the years, it’s perhaps no wonder CRA officials regularily get the details wrong. The actual tax code itself is over 70,000 pages.

This also means that Canadian workers may be overlooking a number of key deductions that could lower their tax burden.

More than 1/5 of paper tax returns contain errors. If you do your own, why not try a professional tax preparer one time and see what they can come up with, and find out if you are missing anything? You might get a pleasant surprise or become more confident in what you are currently doing.

Reports say the error rate for electronically filed returns is less than 1%, and that paper filers are 21 times more likey to make a mistake. Errors can cause tax returns to get audited or rejected, so filing electronically lowers the number of mistakes and your risk.

Only 30% of households use deductions available to them.

No question is too inconsequential to ask, especially if it pertains to a tax question. Remember, this is YOUR money that is involved.

We will include, with your return, any possible suggestions that will help you save money in the future.