Filed Your Taxes Wrong? Here's How to Fix It and Avoid Penalties

At TikiTax, we specialize in helping Canadians correct tax filings — while minimizing penalties and maximizing your refund where possible. In this guide, we’ll walk you through:

1. How Do You Know If You Need to File a Tax Adjustment?

There are several reasons why you may need to revise a previously submitted return:

• You forgot to report income (T4A, T5, self-employment, rental, crypto, etc.)

• You missed claiming tax credits or deductions (RRSP, tuition, home office, etc.)

• You used the wrong SIN or marital status

• The CRA contacted you to make changes

👉 If your tax return doesn’t reflect your actual income and expenses, it’s your responsibility to fix it — before CRA does.

2. How to Correct a Mistake on Your Tax Return (3 CRA-Approved Ways)

The CRA allows taxpayers to correct previously filed returns — but only after they’ve been assessed (i.e., after you received a Notice of Assessment).

Here are the 3 options:

a. Use CRA My Account (Fastest)

If you have a CRA My Account, this is the easiest method:

• Log in and click “Change my return”

• Select the tax year and section to modify

• Submit and track progress online

b. File a Paper Adjustment (Form T1-ADJ)

If you prefer offline:

• Download Form T1 Adjustment Request

• Fill in the sections you want to amend

• Attach supporting documents (e.g., receipts, T-slips)

• Mail to the tax centre listed for your province

c. Let a Professional File on Your Behalf (Recommended)

For more complex issues (e.g., self-employment, investments, multiple years), working with a tax expert like TikiTax ensures the corrections are accurate and well-documented.

3. Will I Be Penalized for Filing an Adjustment?

It depends.
If you correct your return before CRA contacts you, you will likely avoid penalties, especially if:

• You made an honest mistake

• You filed within a reasonable time (under 3 years)

• You provide supporting documentation

However, if CRA discovers the error first and finds evidence of gross negligence or deliberate misreporting, you could face:

• A penalty of up to 50% of the understated tax

• Daily interest on the unpaid balance

• Loss of credits/refunds you might have been entitled to

💡 Pro Tip: If you're unsure whether your situation qualifies, ask about the Voluntary Disclosure Program (VDP) — which may waive penalties if you come forward before CRA initiates contact.

4. How to Avoid Mistakes in the Future

Some common tax errors can be avoided with proper preparation:

• Keep all relevant documents: T4s, RRSP slips, receipts, logbooks, invoices, etc.

• Never "estimate" income or expenses

• Use certified tax software or work with a professional

• Track your RRSP/TFSA/FHSA deadlines

• Review previous returns to ensure consistency

5. How TikiTax Can Help You

At TikiTax, we’ve helped hundreds of Canadians revise previous tax filings and avoid costly mistakes. We specialize in:

• Preparing tax adjustments for individuals and businesses

• Navigating the Voluntary Disclosure Program (VDP)

• Communicating with CRA on your behalf

• Maximizing your refunds even on revised filings

• Ensuring full compliance to avoid audits or late penalties

📞 Book a free 15-minute consultation today. All we need to start is the year(s) you want to adjust and the nature of the correction.

✅ Conclusion: Made a Mistake? Don’t Panic — Just Fix It the Right Way

Filing an incorrect return is not the end of the world — but ignoring it might be.
Taking prompt, responsible action shows good faith and helps preserve your standing with the CRA.

👉 Schedule a free call with TikiTax today to:

• Review your past returns

• Correct any errors

• Recover missed refunds

• Avoid unnecessary penalties