Instaccountant

Instaccountant Canada

Benefits of Refiling Your Uber Tax Return in Canada: A Guide for Drivers

Why Uber Drivers in Canada Should Consider Refiling Their Taxes 5 Key Reasons

Many Uber drivers in Canada don’t know how to file their taxes correctly. They might lose money or get in trouble with the CRA because of errors or missing information. We had a case where we helped a client fix their tax returns for the last three years and saved them about $6,500. That made me want to write this blog to share why Uber drivers should think about refiling their tax returns or making changes to their already filed ones.

The Ultimate Guide to REFILING Your Uber Taxes

Refiling your taxes can seem daunting, but it’s not as hard as you think. As a professional accountant who specializes in Uber drivers, I’ve written this guide to help you understand the benefits of refiling your taxes and how to do it in a few simple steps.

Why Refile Your Uber Tax Return

1. Lack of Expertise

Many Uber drivers choose to file their own tax returns using software like TurboTax, thinking it’s an easy process. However, they often end up making errors or omitting important information. When they come to me to file their current year’s tax return, they are surprised by the tax amount they have to pay or the refund they receive. It’s important to understand that filing a self-employed tax return is more complex than a regular tax return for employed individuals. I always advise my clients to seek the help of an accountant to ensure accuracy and avoid unnecessary taxes.

2. Missed Deductions

Another reason to consider refiling is if you realize that you missed claiming certain deductions in your previous tax returns. For example, many Uber drivers are unaware that they can deduct expenses such as booking fees, service fees, legal costs, or car-related expenses. If you have doubts about the expenses you claimed or omitted in your previous tax return, it is recommended to have it reviewed by an accountant. Even if the expenses seem small, they can add up and make a significant difference in your overall tax liability.

3. HST Considerations

If you believe you paid a substantial amount of HST (Harmonized Sales Tax) in the previous year, it’s worth reviewing your tax return. Changes made to your income tax return can have an impact on your HST return, as they are interconnected. By getting your tax return reviewed by an accountant, you can ensure that both your income tax return and HST return are accurate and optimized. This can potentially save you even more money.

How to Refile Your Uber Taxes

Seek Professional Assistance

Refiling your Uber taxes can be tricky, when you’re self-employed. That’s why it’s a good idea to hire a professional accountant who can review your tax return and help you make the necessary corrections. They will look at your T1 tax return, T2125 form, and Uber tax summaries, and see if there are any errors or opportunities to save money.

Comparing Tax Returns

After gathering all the relevant information, the accountant will prepare a new tax return with the amendments. They will then compare it with the old one and see if there is a benefit to refiling. Sometimes, changing your income tax return can also affect your HST return, so they will check that too.

Submitting Amendments

Once the revised tax return is ready, it can be electronically filed with the Canada Revenue Agency (CRA). The CRA will process the information and issue a notice of reassessment if necessary. In some cases, the CRA may request further explanation or supporting documents for the adjustments made.

Documenting Expenses

When refiling, it is crucial to have proper documentation for all the expenses claimed. This includes receipts and supporting documents for any adjustments made. Keep in mind that the CRA may ask for these documents to verify the validity of the adjustments.

Conclusion

If you are unhappy with the amount of taxes you paid as an Uber driver and suspect that there may have been errors or missed deductions, it is worth considering refiling your Uber tax return. Seeking the assistance of a qualified accountant can help you determine if there is room for improvement and potentially save you a significant amount of money. Remember to gather proper supporting documents for all claimed expenses and work with an expert who understands the obligations of filing tax returns for Uber drivers.

If you have any questions or comments, feel free to share them in the comment section. Take care and happy driving!

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Categories:

Most Popular:

Free Consultation

Recent Updates

× Connect on Whatsapp now!