Filing you taxes on time is always a good idea even if you expect to receive a refund. But if you are scrambling this weekend to get them done, here are a few tips:
1. This year the tax deadline is May 2nd. Normally the deadline to file you tax return is April 30th but because that falls on a Saturday this year we have until midnight Monday May 2nd. Self employed individuals have until June 15th to file, however they must remit any balance owing to CRA by May 2nd.
2. What should you do if you don’t have all your slips? CRA will rarely grant you an extension unless you can prove extraordinary circumstances such as a recent death in the family or a medical issue. Tax professional Gennaro De Luca founder of Taxplan Canada suggests you file anyway, using your best guess for the information you’re missing. Once you have all your slips you can file an amended return, if you own money you will still have to pay interest on the difference; but you will be spared the late-filing penalty of 1% per month you are late.
3. Even if you are getting a refund, file on time. Even though CRA will not penalize you for filing late when you are owed money; it counts as a strike against you. If for example, you file late this year and receive a refund, next year if you file late and owe money; you may be charged a higher late filing penalty because you have missed the deadline in the past.
4. Government Credits and Benefits. The government uses your tax return to calculate whether you qualify to receive any provincial or federal tax credits and certain benefits. If you don’t file because you didn’t have an income, you may be missing out on things like the Canada child benefit. In addition, late filing may delay you receiving government benefits such as the GST/HST credit says Lisa Gittens of H&R Block.
5. It’s not too late to hire a professional. If you are scrambling around Monday morning trying to find a professional tax preparer; go big like H&R Block or go small like Taxplan to get the job done. Many mid-sized firms are already starting to turn people away.
As always, I recommend you use a qualified professional to help with financial matters; including the preparation of your tax return. I read a great quote on Linked-In “If you think it is expensive to hire a professional, wait until you see what an amateur costs you”. I don’t prepare tax returns myself, but if you need a name of a good accountant don’t hesitate to give me a call.
Have a great week,
Tracey
Sources: post on Globalnews.ca 04-25-17 by Erica Alini, professionals referenced in article include Gennaro De Luca of Taxplan Canada, Lisa Gittens of H&R Block MT 2020-04-25,2022-04-29
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