Tick tock everyone! The CRA deadline is fast approaching. Unless you are self-employed, your tax returns are due by April 30th.* Thinking about taxes can often be overwhelming and stress-inducing so, understandably, it’s a topic many of us try to avoid. If you’re a little behind the game this year, here’s what you need to know!
What happens if I’m late filing my taxes?
The CRA charges compound daily interest starting May 1st on any taxes owing for 2018. Interest is charged on penalties starting the stay after the filing is a due date. The interest rate changes every 3 months. A full break down of interest rates can be seen here.
What if I can’t pay my balance owing?
If you can’t pay your balance owing by April 30th, it is still wise to file your personal or business tax return on time. By doing so, you can avoid the late-filing penalty which is 5% of your 2018 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
What should I do if I’m feeling behind and overwhelmed?
We’re glad you asked. Every year, many of our clients leave their taxes to the last minute, so, you’re not alone. First, we recommend compiling your key documents such as T4s, tuition slips business receipts, public transit receipts, etc …
Next, contact an accountant who can ensure that your taxes are filed quickly and correctly the first time. Now that we’re down to the wire it is best to leave this task to a certified professional accountant (CPA) or an enrolled agent.
If you’re scrambling, no need to stress! Contact Taxvisors today, with over 20 years of experience, we can help get your return filed on time. You’ll avoid any interest fees or penalties and can rest easy!
*The CRA tax deadline for self-employed persons is June 15th, however, any taxes owing must still be paid by April 30th.