While the pandemic is still changing many aspects of our lives, the income tax filing date is back on schedule. The last date to file is Friday, April 30, and everyone should meet it to avoid late filing fees. Self-employed people and their spouses or common-law partners have until June 15 to file their tax returns, but we recommend they file by April 30, too!
File By The April 30 Deadline To Avoid Penalties
For most people, you should file your income tax by April 30 because it’s the deadline! Having it filed by this date will mean avoiding penalties on any money you owe in taxes. It also makes sure that you don’t miss out on any payments should you be receiving the Canada child benefit, the GST/HST credit, or federal, provincial or territorial government benefits.
As of right now, there’s no reason to think that a last-minute delay or deadline pushback is going to happen. The Canada Revenue Agency (CRA) is back to following a strict filing deadline, and in 2021, they expect to receive income tax returns and payments on time. If you do not submit your tax filings, the CRA will charge interest fees and possibly penalties. The CRA charges a late filing penalty of five percent of your balance owed plus an additional 1 percent for each month the return is late.
Putting it simply: if you want to avoid late fees, you have to file before or on Friday, April 30. While self-employed people aren’t tied to this date, it’s wise to get the submissions out of the way around this time, too.
Self-Employed People Should File By April 30, Too!
Self-employed people have a bit more time filing their taxes, with a deadline of June 15. However, we recommend they also try and meet the April 30 submission. If you owe taxes, the CRA applies interest to the balance owing as of April 30 – meaning getting them in early can help you avoid penalties, which could be especially beneficial if you’re a small business.
If you pay your taxes in installment payments to avoid a large tax bill, you have four due dates throughout the year; you must submit your installment payments by March 15, June 15, September 15, and December 15.
Even If You Don’t Have Enough, File Anyway
Meeting the filing date is important, as is promptly paying any taxes owed. However, if you don’t have enough money set aside to pay your tax bill, you shouldn’t delay the initial filing – submitting on time will help you avoid a late filing penalty. The CRA will charge you interest as you work on paying your taxes rather than on a lump sum.
If you’re concerned about your taxes or are confused by the new complexities brought by CERB, CESB, CRB, and the rest of the pandemic benefits, talk to the team at Trillium Bookkeeping and Accounting. We can help you navigate the information and make sure you file when you need to!