Common tax filing mistakes and how to avoid them.

You’ve done your homework, gathered your slips, and organized your receipts. Now you’re ready to file but you can’t shake the feeling that you missed something. Double-checking your work is one way to put your mind at ease. Here are the most common errors to watch out for.

Missing or mistaken information.

Some of the most common tax mistakes include double-reporting your income or not accounting for cash you earned from a side gig. That’s right, tips are taxable! Unclaimed income can result in significant penalties, and information missing from your return can be costly.

Government services such as the Canada Revenue Agency (CRA)’s Auto-fill my return (AFR) and Revenu Québec’s Téléchargement des données fiscales (TDF), can help you save time and avoid data entry errors. 

These services allow you to securely download your information slips (such as your T4 or RL-1) from the CRA or Revenu Québec website into your tax return. To learn more about these services, visit the H&R Block Online Help Centre.

It’s also common to miss key information from your tax slips, which can impact your refund.

For example, if you have investments, make sure you keep track of your adjusted cost base (ACB). The ACB is the cost of an investment plus any expenses you paid to buy it, such as commissions and legal fees. 

If the brokerage you used to manage your investment doesn’t know its original cost, they might leave box 20 (the cost or book value) empty on your T5008 slip. If you don’t include this information on your return, you might overstate your capital gains. This could raise your tax bill or lower your refund.

The best way to avoid accidentally missing information on your return is to consult a Tax Expert. If you’re using H&R Block’s online Tax Software, you can have a Tax Expert double-check your return before you file by getting Expert Help. 

Missed opportunities.

Another common tax filing mistake is not claiming the benefits and deductions that you’re entitled to. This means you could be missing out on the opportunity to get the highest refund.

For example, if you moved this year, you might be eligible to claim your moving expenses, which is often missed. If you sold your home to move, your profit is usually eligible for the principal residence exemption, meaning you won’t owe taxes on the capital gains from the sale. 

However, you’ll still need to report the details of the sale on Schedule 3 and form T2091(IND) Designation of a Principal Residence by an Individual. If you’re a Québec resident, you’ll also have to complete form TP-274-V: Designation of Property as a Principal Residence. 

If you don’t fill out these forms and the CRA or Revenu Québec finds out that you sold your home, the principal residence exemption could be denied, and you’ll miss out on this deduction.

Speaking of your home, the first-time home buyers’ tax credit will save Canadians $1,500 in taxes ($1,250 in Quebec) when they purchase their first home. If a home needs to be renovated for seniors or disabled individuals for accessibility purposes, there is a 15% credit available (12.5% in Quebec) on expenses up to $20,000 including GST/HST.

Childcare expenses and disability tax credits are a few more common credits and deductions that are missed every year. Additionally, many medical treatments, devices, and even items prescribed by medical providers but not completely covered under personal insurance can be claimed as medical expenses. This can include prescription contact lenses, glasses, and hearing aids.

The Canada Workers Benefit is a refundable tax credit for low-income workers.

For students, there are tuition and education tax credits, as well as interest on student loans that can be claimed. Students can transfer up to $5,000 of unused tuition credits to a parent, spouse or grandparent. Interest on student loans can be claimed now and for the past 5 years.

By filing with an H&R Block Tax Expert, you can be sure you’ll get the most out of your return, with our Maximum Refund Guarantee^**. We’ll make sure you get all the credits and deductions you’re entitled to. 

Did you miss something?

If you realized that you’ve missed a few things from previous years, there’s good news! You can request to change specific lines on your past federal and/or Québec returns, up to 10 years prior. We suggest waiting until you receive your notice of assessment before asking for changes to your return.

H&R Block’s ReFILE service, part of our online Tax Software, allows you to adjust and re-file a return to the CRA or Revenu Québec without submitting any paper forms. This service is available for the past 4 years’ returns. 

You can also find an H&R Block office near you and have one of our Tax Experts take a Free Second Look at your past returns^{^}. Our experts will check for errors and overlooked deductions. When we reviewed client returns filed elsewhere, we helped more than half of those clients get an additional $2,900 in refunds on average^*.

Ready to file? Be certain this tax season with personalized expertise from the largest network of Tax Experts.