Common Tax Mistakes Latinos Make in Canada (And How to Avoid Them)

In Canada, filing your taxes properly isn’t just about staying out of trouble — it can also impact your immigration status, access to benefits, and even your credit score. Unfortunately, many members of the Latino community make tax mistakes, often due to misinformation, language barriers, or simply not knowing their rights and responsibilities.

At Jaak Services Accounting and Tax Centre Inc., we want to help you understand how the Canadian tax system works and how to avoid the most common mistakes.

1. Believing You Don’t Need to File if You Had No Income

One of the most common misconceptions is thinking you don’t need to file taxes if you didn’t work or had no income. Wrong. Filing your taxes — even with zero income — may qualify you for benefits like the GST/HST credit, Canada Child Benefit (CCB), or provincial assistance.

2. Filing Taxes on Your Own Without Understanding the System

Online tax tools like TurboTax and Wealthsimple Tax are helpful, but they don’t replace professional knowledge. A single mistake with codes, deductions, or missed income can result in audits, penalties, or CRA debt.

3. Not Reporting Cash Income

Getting paid in cash does not mean that income is tax-free. Failure to report it is considered tax evasion. If the CRA finds out, you may face fines, interest charges, or worse.

4. Not Claiming Deductions as a Self-Employed Worker

Many self-employed workers (cleaning, construction, delivery, etc.) don’t realize they can deduct expenses like gas, tools, cellphone use, rent (home office), or internet. Not claiming these deductions means losing money you're entitled to keep.

5. Not Updating Marital or Family Status

Changes like marriage, divorce, or having children affect your taxes. Failing to report these updates can result in benefit overpayments or missed credits.

6. Waiting Until the Last Minute

Filing late adds unnecessary stress and may lead to interest charges or penalties. Plus, if you’re expecting a refund or benefit payments, they’ll be delayed.

7. Trusting Unlicensed or Unqualified Preparers

Sadly, some individuals offer “tax services” without proper training or licensing. If they submit inaccurate or fraudulent returns on your behalf, you are the one who will be held responsible by the CRA.

How to Avoid These Mistakes:

• Work with a licensed tax professional who understands the Canadian system and speaks your language.

• Keep your documents organized and current.

• Never sign a tax return you haven’t reviewed.

• Don’t be afraid to ask questions — your peace of mind is worth it.

At Jaak Services Accounting and Tax Centre Inc., we’ve spent over 18 years helping our community file correctly, avoid CRA problems, and take advantage of all the benefits they deserve.

Got questions about your taxes? Contact us — we’re here to help.