Taxes 2025: 3 Costly Mistakes to Avoid to Save Money (Canada & Quebec)

Every spring, tax season arrives and for many Canadians, it brings stress and potential penalties. Even well-organized taxpayers can make costly mistakes that lead to interest, late fees, and audits. In 2025, the key to a smooth tax season is respecting deadlines, checking your slips carefully, and declaring all your income. At TaxLogist, we help individuals and self-employed workers avoid common mistakes and optimize their returns. Here are 3 tax mistakes you should avoid this year.

1 Missing the Filing Deadline

Penalties:

• 5% of your unpaid balance immediately after the deadline
• +1% per month late, up to 12 months
• Interest charged daily on any balance owing

Key 2025 Deadlines:

• April 30, 2025 – Individuals (Canada & Quebec)
• June 16, 2025 – Self-employed / spouse carrying on a business (June 15 is a Sunday)

Note: Even self-employed individuals must pay any balance owing by April 30 to avoid interest.

TaxLogist Tip:

• Prepare your documents in March
• Set a reminder and schedule your payment to avoid penalties

2 Not Reviewing Pre-Filled Information

The CRA and Revenu Québec often pre-fill your T-slips and RL-slips, but errors are common if:

• You had multiple employers or clients
• You received bonuses, special benefits, or dividends
• You have multiple income sources (employment, self-employed, investments)

Consequence:
A small error can trigger reassessments, interest, or penalties.

TaxLogist Tip:

• Cross-check your T4s, T5s, and RL-slips with your pay stubs and bank statements
• Keep a full record in case the CRA or Revenu Québec requests it

3 Forgetting to Declare Certain Income

Frequently overlooked income includes:

• Short-term rental income (Airbnb, Vrbo…)
• Investment income (dividends, interest, crypto gains)
• Spousal support received
• Sickness, maternity, or disability benefits

Consequence:
Missing these can lead to:

• Reassessments and interest
• Penalties
• Possible audit for repeated oversights

TaxLogist Tip:

• Track all your income sources starting in January
• Keep Airbnb, banking, and investment statements ready

Avoiding penalties and maximizing your tax return starts with proper preparation.

TaxLogist helps you:

• Verify your slips and income
• Maximize deductions
• Submit your return accurately and stress-free

Contact us today for a free consultation!

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