Taxpayers under the age of 35 have the lowest awareness of common tax credits and deductions, according to a recent Angus Reid Public Opinion survey. This lack of understanding can translate into a loss of money.
Fortunately, there are easy ways to find answers to your queries. The simplest way is to seek the advice of a reliable source or professional. They are aware of all the writeoffs available and know the questions to ask you to get a complete picture. Cleo Hamel, senior tax analyst with H&R Block, says she recently surprised clients by informing them that travel insurance, contact lenses and batteries for a hearing device are all deductible expenses.
If you're tackling taxes on your own, you can log on to a site such as H&R Block (hrbtaxtalk.ca) and have your questions answered free online. Or visit the website of Canada Revenue Agency.
The other major problem at tax time, Ms. Hamel says, is not having the proper documentation to support claims. If you're in doubt, hang on to your receipts. Bonus: Reviewing them at tax time is another way to prompt you to recall what you can write off.
Maybe socking all of those slips of paper in a shoebox isn't such a bad idea after all.
Angela Self is one of the founders of the Smart Cookies money group. Read her weekly column on managing debt and saving money at globeinvestor.com .