Audit Season! Are your tax receipts in order?

April 30 was the deadline to submit personal tax returns. In the months of June, July and August, Nannies on Call’s accountants tend to get calls about clients being audited for their personal tax returns – particularly with Child care expenses.

When the Canada Revenue Agency does a personal tax audit, they concentrate on Child Care expenses because child care expenses are a direct deduction from income as opposed to a tax credit (a tax credit is normally 15% of the amount). If you employed a nanny and claimed Child Care expenses, have your receipt prepared in case Canada Revenue Agency knocks on your door.