Tax season can be stressful, and making mistakes on your return can lead to delays, penalties, or even missed opportunities for refunds. Whether you’re filing as an individual, a freelancer, or a small business owner in Halifax, avoiding common tax filing mistakes is key to a smooth process. Here are some of the most frequent errors to watch out for.

1. Missing the Tax Filing Deadline

One of the most common mistakes is simply filing late. In Canada, the tax deadline for most individuals is April 30. If you or your business owe taxes and file after the deadline, you may face penalties and interest charges.

Tip: Mark the date on your calendar and file early to avoid last-minute stress. If you’re self-employed, your filing deadline is June 15, but any taxes owed are still due by April 30.

2. Failing to Report All Income

If you have multiple sources of income—such as a side gig, rental income, or freelance work—it must all be reported. The CRA cross-checks tax slips and bank transactions, and failing to report income can result in audits and penalties.

Tip: Keep track of all income sources and ensure you include them in your tax return. This includes T4 slips, investment income, self-employment earnings, and rental income.

3. Overlooking Eligible Deductions and Credits

Many Halifax residents miss out on deductions and tax credits that could lower their tax bill or increase their refund. Some common ones include:

• Medical expenses (prescription drugs, dental work, etc.)
• Charitable donations (receipts required)
• Home office expenses (if you work from home)
• Tuition and education credits
• RRSP contributions

Tip: Work with a tax professional or use tax software to ensure you’re claiming everything you’re entitled to.

4. Incorrectly Claiming Expenses

While tax deductions can help lower your taxable income, claiming expenses incorrectly can lead to an audit. Business owners and self-employed individuals must ensure that all deductions are reasonable, necessary, and properly documented.

Tip: Keep detailed records and receipts for all claimed expenses. Avoid claiming personal expenses as business expenses.

5. Neglecting HST/GST Obligations

If you’re self-employed or own a small business, you may be required to charge and remit HST/GST. Many new business owners overlook this requirement, leading to unexpected tax bills and penalties.

Tip: If your business earns more than $30,000 annually, you must register for an HST number and collect/remit tax.

6. Entering Incorrect Personal Information

A simple typo in your name, address, SIN, or banking details can delay your tax return or refund. Double-check all personal details before submitting your return.

Tip: Review your return carefully before filing to catch any errors in personal information.

7. Forgetting to Sign and Submit Your Return

If you’re mailing a paper tax return, forgetting to sign it can cause delays. Even for electronic filing, failing to fully submit your return can result in penalties for non-filing.

Tip: If filing online, ensure you receive a confirmation from the CRA. If mailing, sign your return and keep a copy for your records.

8. Not Keeping Proper Tax Records

The CRA can request to see past tax returns and supporting documents for up to six years. Failing to keep proper records could create problems if you’re audited.

Tip: Store tax documents, receipts, and income records in a safe place for at least six years. Consider digital copies for easy access.

9. Ignoring CRA Notices and Requests

If you receive a letter from the CRA requesting additional documents or clarification, ignoring it won’t make it go away. Delays in responding can lead to penalties or reassessments.

Tip: Read all CRA correspondence carefully and respond as soon as possible. If unsure, consult a tax professional for assistance.

10. Trying to Do It All Yourself

Filing taxes can be complicated, especially if you have business income, rental properties, or investment earnings. Many people make mistakes simply because they’re unfamiliar with tax rules.

Tip: If your tax situation is complex, consider working with a professional tax preparer or Pivot Bookkeeping to ensure accuracy and maximize deductions.