Tax season is far from being any citizen’s favorite time of the year, but staying on top of your tax situation (and when your forms are due) will help you prepare to pay your potential tax burden well in advance. If you happen to be one of the lucky few able to claim a refund, you might even feel encouraged to file early.
The personal income tax deadline for Canada is April 30. This means your complete tax forms need to be at their destination by this day. If you are self-employed, your tax return must be filed by June 15, which gives you and your spouse a bit more time to prepare.
Before you begin counting down the days to the deadline, take into account that there are advantages for filing early: First and foremost, you won’t risk being late!
Why You Should File Sooner Rather Than Later
[if !supportLists]● [endif]If it turns out you owe more than you can afford, you can already begin planning a payment schedule and setting up a solution so that you don’t fall behind on any of your other expenses. Filing early means knowing your tax burden sooner.
[if !supportLists]● [endif]Filing before last-minute also means your tax preparation company won’t be quite as busy, and they also won’t be rushed to get your last-minute filings out the door. This gives you added confidence to the process, especially if you happen to be your own tax preparer.
[if !supportLists]● [endif]If you happen to be one of the lucky Canadians who will be receiving a refund this year, you can go ahead and start planning how you’re going to spend (or save) it!
In general, waiting to file last minute will only cause you more of a headache. You’ll be rushed through the process, potentially leading to errors that can cost you in the form of added taxes (or even an audit, fines, and penalties). It can also mean you might not get your taxes finished on time, which can lead to additional penalties.
There are a few situations in which the Canadian Government will grant you an extension on the filing deadline, but they won’t do so simply because you procrastinated
. If you need an extension for a valid reason, you increase your odds of being granted one by requesting it early.
Finally, if you go ahead and set aside the time to file now, you won’t have to keep worrying about last year’s taxes all through Spring. This, in itself, can prove to be well-worth setting a few moment of your time aside and getting them done early. Plus, finding a tax preparation company to help will be a lot easier if you reserve your spot sooner.
Can You Do It Own Your Own?
Unsure that you can handle filing your taxes without professional guidance? You’re probably right. The tax system in Canada is extremely complex, and doing it on your own can lead to errors and end up costing you more money if you don’t know which deductions to take. Filing on your own also increases your chances of being audited.
Taxes are one thing you might want to leave to the professionals.