Canadians have the fortune of enjoying changing seasons. This month, winter will give way to spring. Similarly, RRSP season has ended, heralding the beginning of tax season.
And while a recent survey found that 41% of Canadians find pleasure in filing their tax returns, many do not appreciate the experience, or the confusion and frustration that might accompany it.
To help clear the murkiness, H&R Block has offered their top 10 tax myths:
Maternity leave income is not taxable. “You are required to report your EI benefits as income. In most cases, Service Canada withholds less than the lowest tax rate so you may have tax obligations at the end of the year.
RRSP contributions do not have to be reported if I do not use the deduction. “Even if you are not claiming a deduction for the contributions you made in the year, you are still required to record the fact that you made them. So all your contributions from March 2, 2012 until March 1, 2013 should be recorded on your 2012 tax return.”
Tips are not considered income. “Servers and others working in the hospitality industry are required to record and report their tips on their tax return. For servers, tips may be as much as 200-400 per cent of their income.”
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