Kim Parlee explains how comparing your tax returns yearly may help to detect mistakes, like missing income or deductions.
Compare this year's tax return, to last year's. Look at it line by line.
Because it could show a mistake.
If you forgot something this year, then you'll see it and compared to last year.
And even if you made an error last year, you can get an adjustment and maybe even get that money back.
Some common errors may include things like missed deductions or credits, forgetting slips such as T5's that declare investment income.
Even if you use an accountant to file your tax returns, it's still a good idea to compare to see if anything's accidentally recorded incorrectly.
Doing this can also insure your no offside with the Canada Revenue Agency, and risk paying penalties later.
I'm Kim Parlee, and that is your MoneyTalk Minute.