Helpful information for filing taxes as the deadline approaches
Credit to Author: Canadian Immigrant| Date: Tue, 05 Apr 2022 13:24:41 +0000
Every year, the Canada Revenue Agency (CRA) requires taxes to be filed by all residents by April 30. Not paying taxes is actually against the law and can result in penalties. This year, since the deadline falls on a Saturday, returns will be accepted till May 2. For individuals or families where one of the filers is self-employed, the deadline is June 15.
Many of you may have filed your taxes already, but for those who still find themselves lost, remember that the process of filing taxes need not be so daunting. Whether you are a newcomer, student or a new entrant into the workforce, here is some information you can use.
Do you have your tax slips?
If you have not received your financial records from your employer, financial institution or schools or have misplaced them, you can find them online on the CRA website under ‘tax slips’. You can also ask your employer or the issuer of the slip for a copy.
Understand what tax slips you need for your situation. These could include your record of wages and salaries (T4), statement of investment income (T5), T2202 (tuition enrolment certificate if you are paying for school) or a general statement for pension, retirement, annuity and other income (T4A).
You can find out more about required tax slips for your personal income tax on the CRA website.
Where can you find help to do your returns?
Many community organizations across Canada host free virtual tax clinics. Volunteers can help you complete and file your taxes for free by videoconference, by phone, or by walk-in and drop-off clinics.
You can find these clinics listed on the CRA Website. In addition to your Social Insurance Number, clinicsrequire documents including receipts and identification along with your tax information slips. Make sure you have all the documents before you go for your appointment.
If you’re a student, look out for various drop-in centers on university campuses that offer basic tax services for free.
If your income is low and your tax situation is simple, specially trained volunteers at CRA can help you to fill out your tax return (call 1-800-959-8281 for more information). If it’s more complicated — for example, you’re self-employed — you should seek the assistance of a tax preparer or accountant.
What software is available if you are filing digitally?
There are a number of free certified software programs that you can use to do your taxes online. Free offerings based on individual tax situations or income levels are available through tax preparation companies such as H&R Block and TurboTax, which also provide online assistance for a small cost.
Other online tax filing platforms include NETFILE, Wealthsimple Tax, and many more. You can find a list of platforms on CRA (under Certified Tax Software). Only use CRA-certified platforms to avoid scams and fraudulent schemes.
What benefits can you claim?
Find deductions, credits and expenses you can claim on your tax return to help reduce the amount of tax you have to pay. You may be eligible for more benefits than you think. According to the CRA website, the most requested credits are disability tax credit, medical expenses, moving expenses, digital news subscription expenses, Home office expenses for employees and Canada training credit.
Check your provincial website to find out what tax credits you’re eligible for.
What if you miss the filing deadline?
If you do not owe any taxes, there will not be any late penalties charged.
If you file your tax return after the due date and have balance owing, you will be charged a late-filing penalty, which is five per cent of your 2021 balance owing, plus an additional one per cent for each full month you file after the due date, to a maximum of twelve months.
There also might be additional compound daily interest on the balance. Read all late-filing charges carefully on the website and avoid missing the deadline.
When can you expect your refund?
It takes two weeks to get a refund when you file your taxes online, and eight weeks if you file a paper return. Return may take up to 16 weeks if you live outside Canada. If you use direct deposit, you could get your refund faster.
Educate yourself
Tax planning can really help you take advantage of some tax credits and deductions you are eligible for. Start learning about the tax system and how it works. Before the next filing deadline comes up, read articles on filing taxes and the tax system (federal and provincial).
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