5 Tax Myths That Could Cost You Money – Busted by a CPA — CPA Firm Near You, Montreal

1. “If I don’t receive a tax slip, I don’t need to report the income.”

False.
All income is taxable, whether or not you receive a T4, T4A, RL-1, or any other slip.
CRA matches your banking activity, PayPal/Stripe payouts, side income, and platform earnings. Unreported income is a major audit trigger.

2. “All expenses related to my business or job are deductible.”

Incorrect.
Only expenses that are reasonable, necessary, and supported by receipts are deductible. Many taxpayers incorrectly claim:
• Clothing
• Home renovations
• Personal meals
• Unapproved employment expenses

CRA frequently denies unsupported or personal expenses.

3. “Cash income is tax-free if it’s not deposited.”

Dangerous myth.
Cash income is fully taxable and must be reported. CRA uses lifestyle audits, bank deposit analysis, and third-party data to find undeclared cash earnings.

4. “I can claim a home office because I worked from home sometimes.”

Not true.
Home office eligibility requires:
• Regular and exclusive use, or
• Being the principal place of business
Occasional work at the kitchen table does not qualify. CRA requires calculations, floor plans, and proportional expenses.

5. “Filing late is fine if I can’t pay.”

False — and costly.
You should always file on time. Filing late triggers immediate penalties and freezes credits. You can negotiate payment arrangements with CRA, but late filing penalties cannot be reversed easily.

Mackisen Strategy

At Mackisen CPA Montreal, we help taxpayers avoid costly mistakes by:
• Identifying and correcting myth-based errors
• Preparing accurate, compliant tax returns
• Maximizing refunds through legitimate deductions and credits
• Reviewing prior years for missed claims
• Responding to CRA and Revenu Québec inquiries
• Providing clear, reliable tax education for long-term confidence

We replace guesswork with professional certainty.

Real Client Experience

A Montreal freelancer believed that non-slip side income was “informal” and didn’t need to be declared. CRA audited and added two years of unreported revenue. We reconstructed all records, filed adjustments, and reduced penalties.
Another client claimed a home office based on occasional remote work; CRA denied the claim. We recalculated eligibility properly and recovered legitimate deductions from previous years.

Common Questions

Can CRA really check my bank deposits?

Yes. CRA analyzes deposits and electronic payments to detect unreported income.

Is social media tax advice reliable?

Usually not. Only CRA publications or CPA guidance should be trusted.

Should I file even if I can’t afford to pay?

Yes. Filing late leads to higher penalties than owing money.

Can I fix past mistakes?

Yes. Adjustments can be filed for up to 10 years in many cases.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps individuals and businesses file accurately, avoid penalties, and eliminate tax myths that create financial risk. Our guidance is precise, compliant, and audit-ready.