Tax Season In Canada may seem like it’s many months away, but soon enough, that filing deadline will be on our doorstep. That period of the year when you have to report your income and eligible expenses to the government is never a memorable or fun one, but waiting until the last minute, or failing to gather the appropriate receipts in advance will make the process difficult and more Strenuous.
This guide to 2019 Tax Season In Canada will provide you information on what you need to file your taxes this year and get a refund if in luck.
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Deadlines for Filing Taxes in Canada 2019
The first step is to prepare early by organizing your documentation well in advance of the tax deadlines. As an individual, if you owe taxes, the deadline to file is April 30th, 2019. It’s also the last day to pay your taxes if you owe the government money.
If you plan to owe taxes in future, several weeks should be filed in advance of deadlines so the Canada Revenue Agency (CRA) can assess your return before payment is due. If you file late and end up owing taxes, you’ll be required to pay interest and there will be penalties on your outstanding tax balance until you submit your payment to the CRA.
According to Brendan McCann of Kudlow McCann, a chartered accounting firm in Toronto, “self-employed individuals have an extended filing deadlines of June 15”. However, they should still ensure their taxes for 2018 are paid by April 30 to avoid paying interest.
Earliest Date You Can File Taxes in Canada 2019
The first day to file taxes is much earlier while the last day to file is April 30th. The CRA started accepting returns on February 26th of last year, and you can expect the first day to file around the same time this year.
Whether you think you owe taxes or not, filing your taxes early has benefits. By filing early, you will have enough time to have your return assessed well before the April 30th deadline. If you don’t owe money, early filing will result in your refund reaching your bank account sooner.
How to File Taxes in Canada
If you you don’t have knowledge of the internet there is always the option to send in forms by snail mail. But the easiest route is to file your tax return with the CRA by Internet
There are two options: NETFILE or EFILE. NETFILE is designed for individuals who prepare their own tax return with the use of computer software like TurboTax. Once complete, just click a button and the software sends the completed return electronically to the CRA. As simple as that.
Meanwhile, the EFILE option is geared for those who have had their tax return prepared by a professional tax preparer. The company then sends the completed tax return via electronic medium to the CRA on your behalf.
Do You Need to File Taxes in Canada 2019?
Technically, you only file taxes if you owe money to the government. That said, there are two main reason why you should file your taxes every year.
First, if you don’t owe money, hopefully you’ll receive a refund from the government. This money can be put to good use bettering your finances.
Secondly, the government uses your tax return to determine whether you are eligible for certain benefit programs.
Another major benefit that uses your income tax return is the Canada Child Benefit (CCB). This is a monthly payment made to families with children under the age of 18. Information from your income tax return is used by the CRA to calculate how much your payments will be, which is why it is important for you and your spouse to file a tax return every year, even if you had no income.
Deductions to Remember for Taxes in Canada 2019
Since there aren’t many tax changes slated for millennials in 2019, there are a variety of deductions that you might have missed in previous years.
For renters living in Ontario, it’s very important to request a receipt from your landlord for rent paid in 2018. This information is useful to assess whether you qualify for the Ontario Trillium Benefit, a refundable tax credit for families with low-income.
If you’re a new homeowner, you’re probably feeling the financial crunch that comes with new home ownership. The good news is that you’ll qualify for the $5,000 first-time home buyer’s tax credit. The only requirements to claim this tax credit are that you or your partner have purchased the home in 2018, and you did not live in another home owned by you or your partner in the four years before the purchase.
For recent graduates or students, you might be lamenting the elimination of the textbook tax credit, but you can still claim some deductions for being a student. Student loan interest is deductible, and if you paid tuition at a recognized post-secondary institution, you might be eligible to carry your tuition forward to higher earning years or better still claim it. Your school’s student accounts office will have copies of your tuition payments.
Getting the Most from your Tax Return
Early preparation is the key to ensuring you file your tax early and claim every possible deduction. Ensure to keep your previous year’s notice of assessment, which contains vital information about your RRSP contribution amounts, tuition tax credits, Home Buyer’s Plan repayment amounts, etc. If you are not in possession of your notice of assessment, you can log into your CRA account and find the information you will need.
To be sure that you’ve claimed every possible deduction, use online tax software, like TurboTax. It will help you to assess your information and suggest additional deductions that you haven’t considered. You also have the option of having a tax professional review your return online, to be sure you’ve claimed all available deductions.
You can also see information on personal income tax deduction in Canada.