WEYBURN - The end of April is usually quite busy, as many non-profit organizations and cooperatives host their annual general meetings. There is good reason for these AGMs to all come around the same time, as the deadline to file a 2023 tax return is April 30.
If you are a business owner or self-employed, the Canada Revenue Agency gives you a bit longer to submit your income tax return — you do not have to submit it until June 17, 2024. However it is still recommended for businesses owners and self-employed individuals to submit their tax return by April 15.
This is because April 30 is also the deadline for payment, if you owe money to the CRA. You’ll avoid late-filing penalties and interest by filing and paying on time. Even if you can’t pay your entire tax debt right away, filing by the deadline is important to prevent any disruptions to your benefits and credits and to avoid penalties.
If you make installment payments throughout the year so that you can avoid a large bill at tax time, you have four due dates throughout the year. Whether you are self-employed or employed by someone else, you must submit your installment payments by March 15, June 15, September 15, and December 15 of each year.
It is also important to file all your information correctly, especially reporting all of your income, including tips and gratuities for those who receive them. It is very important to be honest in your tax return reporting. There is a saying that anything hidden in the shadows eventually comes to light - and the Canada Revenue Agency will get any money owed to them back, if there is an attempt to lie or hide information from them.
When it comes to filing taxes, I am one of those people who prefers to get it completed as soon as I have everything I need. I can understand why some people put it off though, as filing taxes is something that can feel like a chore to complete.
There are a few ways to increase your chances of receiving a refund from the CRA, or at least lower the amount of tax that you owe. It is always important to keep receipts for things such as home office expenses, moving expenses, tuition fees, and other things that could be applied to your tax return. Look out for new tax programs, such as the First-Time Home Buyers Tax Credit, and the Canada caregiver credit, that might also lower your tax payments.
Also remember, that contributions to a Registered Retirement Savings Plan can allow you to reduce the amount of your taxable income. Make sure that you are not exceeding your contribution limit, and meet the annual contribution deadline, and it is a win-win benefit as you are able to save up for retirement at the same time at lowering your taxable income.
Donating to a charity also helps to lower a tax bill, and it is another win-win situation as you can help one of the local non-profit organizations in the community.
Being prepared for your taxes with the right documents and information can make the actual return feel a lot easier. It is a good idea to get into the habit of saving all documents from the same tax year in one place - either in a file box, a digital folder, or in a paper envelope.
There is an idiom that states one thing remains constant in this world: “death and taxes”. Do your best to stay prepared, and file correctly and on time, and consult local professionals if you need assistance.
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