Mess Up On Your Taxes? Here’s How to Fix Them
It’s so easy to happen – You spent hours doing your income taxes – filing, preparing, double checking, and then finally sending it in to the CRA. You feel relieved. As you start putting everything away, a slip flies out of your file and lands on your floor. You look at it and it’s one that you didn’t include with your filings.
Frustrated, you wonder what’s next and if it’s even worth your time.
This is actually a pretty common occurrence – tax slips that may have been misfiled, lost in the mail, never issued at all and much more!
As you can probably guess – we’re going to cover how to fix your filed income tax return and how the process works.
This is a pretty stressful situation for many Canadians and many don’t know what the next step is. The good news is that it’s probably a lot easier to fix mistakes than you may think.
The First Step To Fix Your Taxes
The first step is to take a step back and wait until the CRA has finished reviewing your tax return and issued you a Notice of Assessment. This usually takes a couple of weeks and you can check to see if this is complete by logging onto CRA My Account, waiting to receive a paper or online copy, or by calling the CRA.
You know how you may have been told that problems just don’t go away on their own? Well, that’s not always true here – in many cases the CRA may have already changed your tax return – especially if it’s a tax slip that they have in their records.
This is the best case situation as you really don’t need to do anything except to verify that you’re happy with the results.
Three Ways to Fix Your Taxes
So, what do you do if the CRA didn’t clean up your mess? There are three different ways to file a correction – online at CRA MyAccount, mailing a correction form, or sending a signed letter.
The easiest and quickest of the options is through CRA MyAccount – you simply find the “change return” option and make the changes for the tax year in question.
Once you’re in there you then choose the tax line that needs to be updated and enter in the new amounts. Once that’s done, you review it and then send it out.
The CRA says that this is the quickest option and only takes about 2 weeks. Further, you don’t even need to send in any documents unless the CRA asks for them.
The next option is to send in a T1 Adjustment Form – this is a simple one-page form where you have to write in your personal information, the tax line number, the previous line amounts and finally, the amended amount.
You’ll have to fill out a form for each tax year separately.
Once you’re done, you mail it to your local tax office with supporting documents. You can also write a basic letter to clarify the details of what you’re doing if needed. This method takes about 8 weeks.
The final way is to send a detailed letter stating the changes that you’re doing and to have it signed. You’ll also need to provide usual details like name, address, birthdate, SIN number and more.
You’ll also need to provide supporting documents for this option, and this will also take approx. 8 weeks.
Out of the three options this is probably the least preferred option to use.
Once everything is done, you’ll then either receive a Notice of Reassessment – if successful or a rejection notice if unsuccessful.
If your request is denied, you can appeal the results by updating the errors or contacting the CRA.
If you’re change request is successful then all you really need to do is verify that the results are what you submitted.
So that’s the process if you fudge up on your taxes – it’s a very simple process and it’s best to do it asap as this can easily turn into a financial project that is put aside and forgotten about.
Link to CRA regarding how to fix your taxes – How to change your return – Canada.ca