The top 10 things the taxman may review on your tax return
After you’ve submitted your tax return, here are the items that Canada Revenue Agency (CRA) is likely to question. This list is based on conversations with several tax professionals, and from a list by the CRA of the most common mistakes found on Canadian tax returns. The top ten items deal with: employment expenses, carrying chargers, moving expenses, medical expenses, charitable donations, capital gains & losses, allowable business investment losses, tuition credits, student-loan interest, and providence of residence.
Overall, receipts are key, and also knowing what you can and can’t claim. For instance, a lot of people try to claim non-deductible things like safety deposit box fees and brokerage fees, and there’s still a lot that can’t be claimed on medical expenses like vitamins or over-the-counter medications cannot be claimed.
- Employees are not allowed many deductions on employment expenses. Improper employment expenses should not be deducted because auditors scrutinize this area closely.
- People sometimes fail to keep valid receipts. Make sure you have documentation, such as receipts, for all your deductions.
- Changing your province of residence can result in increased scrutiny.
“The following is a list of the top 10 items that the taxman is likely to question.”
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