Last Minute Tax Tips
Hello All,
According to Revenue Canada, approximately 18 million tax returns have been filed as of April 25th. This is great, but it also means that approximately 12 million Canadians have not yet filed their tax returns, when compared with total returns received for 2021. It is perhaps not a huge surprise that many of us leave the tedious task of tax filing to the very last minute (including myself :)). Of course, if you haven’t filed, now is the time to get it done! Below are my annual tips for tardy tax filers:
I encourage everyone, who is doing it themselves, to use tax software. This significantly contributes to accuracy and can help you save taxes by optimizing certain deductions and credits.
If you don’t think you will be able to get your taxes in on time, and you owe tax, you should at least make an estimated payment. This will help you reduce penalties and interest (which are based on how much you owe in taxes).
Even if your taxes are simple and you expect a refund, you should file your taxes as soon as possible a) to get that refund! and b) ensure that you get any additional credits (GST, Solidarity tax, child tax benefits etc.) that you are entitled to, on time.
The deadline for filing your taxes is May 2nd this year so you still have some time. Weekends are always a good time to hunker down and get it done.
If you are reporting small business/self employed income, then both you and your spouse have until June 15th to file your return. Note that both CRA and Revenue Quebec start charging interest after May 2nd on any taxes payable. However, penalties, which tend to be much steeper will only be charged after June 15th.
If you are missing tax slips, you can often get them by going to CRA my account and downloading them there. You can also use the “auto fill” feature offered by most software to automatically download your tax data.
Don’t forget to file your GST/HST and QST return. Penalties for late filing and payment are significant.
Taxes can be paid by using bill payments that are available in most online banking portals. Your reference number is your SIN.
And of course, for all of us that leave it to the last minute, resolve to do it on a more timely basis next year!
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