The 1.5 million Canadians who found themselves out of work this year might be up against a whole new set of stressors when filing their taxes, according to The Globe Investor.
Most of the country’s unemployed workers are turning to either self-employment or employment insurance as a means of getting by, and both options present tricky tax challenges.
For instance, the self-employed are now required to track their car mileage, as the CRA reviews all automobile expenses to ensure that people are writing off only the applicable amount. Those Canadians collecting employment insurance are also in for a surprise, as the amount they receive must be claimed as income on their tax returns.
By remembering to take advantage of student credits, borrowing from your RRSP to fund your re-enrollment in post-secondary education, and remembering that job-hunting expenses are not deductible in Canada, you can make filing your taxes a little less painful.