How much do you know about the income tax rules? Here's a quick quiz
Howard Alexander - News Editor
Image Credit: Shutterstock
April 08, 2016 - 9:30 AM
It's that time of year again. Time to do your income tax return and send it off to the Canada Revenue Agency.
Here's a quick quiz to test your tax return knowledge.
Question: How long do I need to keep receipts and records?
A) Three years
B) Four years
C) Five years
D) Six years
Answer: The Canada Revenue Agency says you should keep any receipts and documents for at least six years after you file your return. If the government decides to review your return, you will need them to back up your claims.
Question: Which of these is not a deductible medical expense?
A) Dentures and dental implants
B) Electrotherapy devices
C) Laser eye surgery
D) Blood pressure monitor
Answer: Blood pressure monitor is not an eligible medical expense.
Question: When do you have to pay your taxes by?
A) April 15
B) April 30
C) May 2
D) June 15
Answer: The deadline is April 30, but because it falls on a Saturday this year, the Canada Revenue Agency is giving you until May 2 to pay any tax you may owe this year.
Question: How many years do you have to repay money borrowed from your RRSP to help buy your house?
A) Five years
B) 10 years
C) 15 years
D) 20 years
Answer: You have up to 15 years to repay the amount taken out of your RRSP to help buy your house. If you repay less than the required annual amount for the year, you have to include the difference on your tax return as income.
Question: What is the immediate penalty if you owe the Canada Revenue Agency money and you file your tax return late?
A) Two per cent
B) Five per cent
C) Seven per cent
D) 10 per cent
Answer: The immediate penalty is five per cent owing on the due date. An additional one per cent is added for each full month that your return is late to a maximum of 12 months. However, if you were charged the late-filing penalty for 2012, 2013 or 2014, the late filing penalty may be 10 per cent, plus two per cent for each full month.
Question: What percentage of individuals filed their tax returns online last year?
A) 79 per cent
B) 82 per cent
C) 86 per cent
D) 92 per cent
Answer: The Canada Revenue Agency says 82 per cent of people filed their tax returns online.
News from © The Canadian Press, 2016