The Canada Revenue Agency (CRA) is reminding Canadians as they approach the tax deadline this season to file their taxes efficiently and identify all sources of income and potential deductions. This tax season is set to resemble last year’s process, but there are notable changes and continuous reminders to stay updated and vigilant against tax-related scams.
CRA Spokesperson Sababa Hossain elaborated on some new developments, particularly focusing on the Homebuyers Plan. "Saving up for your first home is now easier than ever with the Homebuyers Plan. The change for this year is the withdrawal limit has increased from $35,000 to $60,000. The withdrawal is tax-free, so you can have more money toward your down payment," she explained. This increase is expected to help many Canadians as they look to navigate the current housing market.
Another area where individuals can save is with short-term rentals. Hossain mentioned, "Airbnbs are really big, so if you have a short-term rental registered in a municipality where it’s legal, you can also claim expenses associated with it.” The growing popularity of platforms like Airbnb means more people are engaging with the rental market, sometimes leading to unexpected tax obligations.
When it come to filing, the CRA indicates forgotten income or deductible expenses are among the most common mistakes taxpayers face. Major life changes often lead individuals to overlook significant deductions. Hossain pointed out, “If you’re moving for work or for school, you can claim moving expenses. If you’re paying for childcare to earn income or to go to school, you can also deduct those expenses on your return.” This highlights the importance of keeping proper documentation and being aware of the potential financial advantages within reach.
Another significant reminder from the CRA is to maintain accurate and current information on your CRA account. Hossain advised taxpayers to regularly update their records, including their address, marital status, phone number, and banking information, to avoid potential delays or issues during the filing process.
For those who may be considering how to submit their tax returns, Hossain mentioned there are various methods available. “There are several ways to file your taxes, including via mail, but the easiest and most popular way to go is the online route.” The convenience of online filing is praised for its efficiency, making it easier for taxpayers to complete and submit their returns before the April 30th deadline.
While some may find the tax-filing process burdensome, the CRA warns against the threats posed by fraudsters, particularly during this busy season. “Now, we actually see scams where individuals are getting text messages, and it asks them to click a link, but the twist is, it contains their real name and social insurance number,” Hossain stated. This form of cyber fraud can be especially deceitful and puts individuals at risk.
To effectively handle suspicious messages, Hossain suggests using the BIRD method: block, ignore, report, and delete. If individuals receive messages they deem suspicious, they are encouraged to contact the CRA directly to check if those messages are legitimate.
With the tax filing deadline of April 30th looming closer, Canadians are urged to stay informed, utilize available resources, and remain aware of both the opportunities and risks associated with the tax season. By doing so, tax filers can maximize their potential deductions and protections against fraud.