What you need to know before you file?
Let’s face it, having a trusted accountant and tax preparer can help to make tax-filing less and less painful even for the do-it-yourselfers.
Still, whether you’re outsourcing the work to an algorithm or an accountant, it’s always a good idea to know when deadlines fall and what’s new every year.
Here’s our guide to the 2020 tax season:
1. When is the deadline to contribute to my RRSP?
Since March 1 falls on a Sunday this year, the cutoff this year is March 2.
Remember, you can put money into your registered retirement savings plan (RRSP) any time. But if you want to get a tax refund for your RRSP contribution with your 2019 return, you must add the funds by the March deadline.
2. When’s the tax-filing deadline?
As usual, April 30 is the date most Canadians need to keep in mind. For most tax filers, this is the deadline to both pay any tax due and file returns.
If you’re self-employed, this year you have until June 15 to file. Remember, though, that if you owe taxes, you still need to pay up by April 30.
If you’re late to either settle your balance or send in your paperwork, you’ll face late-filing penalty and daily interest charges on any taxes owed.
3. When’s the earliest I can file?
If you just can’t wait to get that big refund, know that the Canada Revenue Agency (CRA) will start accepting electronic returns on Feb. 24.
Most people want to skip the tax-processing queue because they anticipate getting money back. But having a big tax bill is also a good reason to file early. That allows you to set up a plan to pay your tax in installments. The more you manage to pay by April 30, the fewer extra charges you’ll face.
Still, there are potential drawbacks with filing too early. Many of the tax slips you need to file your return are due March 2, so it’s not a good idea to file before then unless you’re sure you’ve received all of them.
Also, it usually takes until mid-March for tax slips and other information the CRA has on file to become available through its autofill my return feature, which allows you to automatically fill-in part of your return.
Newsletters
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Events & Sponsorship
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Articles & Publications
Budget 2021: What’s missing?
Budget 2021: What’s missing? The Liberal government has laid out billions in fresh spending after over two years without a federal budget — and while many of the government’s recent pledges graced its pages, others were notably absent. It’s possible some policies were...
2021 Canadian Federal Budget – Tax Initiatives
On April 19, 2021, Deputy Prime Minister and Finance Minister Chrystia Freeland tabled in the House of Commons the Liberal Government’s first federal budget in more than two years, A Recovery Plan for Jobs, Growth, and Resilience (Budget 2021). Budget 2021 contains...
What Do I Need to Open a Business Bank Account?
What Do I Need to Open a Business Bank Account? Business bank accounts help your business appear more professional to the CRA and your customers. Here's a closer look at why you may want a business bank account and how to choose the best one. Each stage of building a...
The importance of Financial Reporting
The Importance of Financial Reporting Beyond the record creation process, accountants use the information gathered for analysis and interpretation. Accountants are usually concerned with understanding the meaning of the amounts they obtain, and they look for the...
CRA Emergency Payments: 2 Massive Changes Coming
The Canada Revenue Agency (CRA) launched the Canada Emergency Response Benefit (CERB) as the flagship COVID-19 program by the Canadian government in 2020. CERB became a lifeline for Canadians who lost income due to the pandemic. The program ended on September 27,...