Yahoo Finance Posthaste: Many taxpayers owed money by the CRA aren't collecting it all
A large number of people could be losing out on money owed to them by the Canada Revenue Agency because they don’t understand how to maximize their tax refunds.
Close to half of Canadian taxpayers say they don’t feel confident in how to claim tax credits and benefits to get the biggest refund possible, according to a new survey from tax preparer H&R Block Canada Inc. Half are also clueless about whether they’ll be getting money back in the first place, with only a third putting funds aside in case they owe.
At the same time, many have come to rely on their tax refunds to help make ends meet, especially as a higher cost of living has come home to roost this year. Almost half are counting on a refund to give them some much-needed extra cash and the top ways people plan to deploy the funds include paying down debt, tackling bills and buying day-to-day necessities.
Canadians have good reason to be confused about their tax refunds, given the sheer number of credits and benefits available to them, H&R Block said.
“With more than 400 available tax credits and benefits — and new and evolving credits and benefits every year — it’s not surprising that the majority of Canadians don’t feel confident they’re able to maximize their tax refunds,” Tannick Lemay, tax expert at H&R Block Canada, said in a news release.
That lack of confidence also stretches into a failure to understand the basics of how tax season works. Some admit to not even knowing the start date for when the CRA accepts income tax forms or the deadline to file.
Many also admit to being clueless about how tax deductions work on their paycheques. One in three Canadians don’t know how much tax should be taken off their pay and 35 per cent wouldn’t know if their employer made a mistake. Overall, less than a third review their pay stubs regularly to ensure there are no errors.
T4 slips also get little love from taxpayers, H&R Block said. Just 48 per cent say they look the form over to catch potential mistakes on tax deductions, insurance and pension contributions.
Canadians’ lack of tax knowledge is leading to a sense of “tax anxiety” among many, H&R Block said, with 16 per cent worrying throughout the year that they’re destined for a surprise bill from the CRA because not enough tax has been taken off their paycheques.
The antidote to such anxiety is knowledge and H&R Block is calling on taxpayers to take steps to learn about paycheque deductions and how their taxes are calculated.
“It’s empowering to have the right conversations with the right people to better understand your pay and tax situation,” Lemay said.
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Tesla Inc. delivered just 386,810 vehicles in the first three months of the year, it said on Tuesday, missing Bloomberg’s average estimate by the biggest margin ever in data going back seven years.
A myriad of red flags went up throughout the quarter. First, Tesla warned its rate of growth will be “notably lower” this year, blaming interest-rate hikes that have kept its cars out of reach for many consumers even as it slashed prices. The company dealt with multiple disruptions at its plant outside Berlin. Musk engaged in inflammatory posting on X, turning off prospective buyers, and China’s EV market grew even more cutthroat.
Despite all those evident headwinds, most still expected Tesla to sell more vehicles than a year ago. Instead, deliveries ended up dropping 8.5 per cent.
“Anyway you put it, it was ugly,” said Gene Munster, managing partner of Deepwater Asset Management. “Demand is soft. Interest rates are still high. Is Elon’s brand damaging Tesla sales in the U.S.? It’s directionally a negative.”
The Ontario Provincial Police, the Canadian Border Services Agency, and policing partners in Ontario and Quebec will announce the results of an interprovincial auto theft investigation in Montreal.
Prime Minister Justin Trudeau is set to make a housing announcement in Toronto ahead of the 2024 federal budget.
Canadian Club Toronto hosts the event: “An Engine for Growth: How Canadian Tire Corporation’s World-Class Capabilities Fuel its Future Success.” Canadian Tire CEO Greg Hicks will discuss the company’s Triangle Rewards loyalty program, emerging technology and accessing new revenue streams.
Federal NDP Leader Jagmeet Singh will speak about the NDP’s push to make big grocer CEOs “pay their fair share.”
Manitoba Finance Minister Adrien Sala speaks to the Manitoba Chambers of Commerce.
Northvolt AB will provide details about work building its Quebec battery plant over the last six months.
The Economic Club of Canada will host an event titled, “Sustainably Financing Canada’s Energy.” The event will explore the role the financial services can play in lowering carbon emissions to help Canada meet its net-zero targets by 2050. Desjardins CEO Guy Cormier gives a keynote speech.
Toronto home sales for March.
Today’s data: Canadian and U.S. S&P global services PMI, U.S. ADP national employment report, U.S. ISM services PMI
Earnings: BlackBerry Ltd.
Ottawa to launch $6-billion infrastructure fund to help build homes — with strings attached
Surge in luxury home sales signals stronger spring market, Re/Max says
Your resumé is probably too long — and recruiters aren’t impressed
5 tax changes to watch out for in the upcoming federal budget
5 tips to help keep the CRA off your back this tax-filing season
Investors always have questions, so much so that Financial Post columnist Peter Hodson’s research company has answered more than 168,000 of them during its 12-year existence. Here, he looks at five of the most popular question topics in recent months.
Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you wondering how to make ends meet? Drop us a line at aholloway@postmedia.com with your contact info and the general gist of your problem and we’ll try to find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course). If you have a simpler question, the crack team at FP Answers led by Julie Cazzin or one of our columnists can give it a shot.
McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Read them here.
Today’s Posthaste was written by Victoria Wells, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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