Last-Minute Tax Filing Tips

Tax deadline is looming, and if you’re still panicked about getting your tax return in before the April 30th deadline, you’re not alone. CRA says it’s only received about 10.4 million tax returns of the estimated 29 million they are expecting for the year.

And by the way, since April 30th is on a Sunday this year, your return will be considered on time if it is postmarked on or before May 1, 2017.

Either way, it’s definitely time to buckle down on that return if you’ve still not done it. If you’re one of those last-minute tax filers, here’s some tips:

• File on time, regardless: always file on time even if you don’t owe any money. Late penalties are only applicable if you’re late and owe money, but without filing on time, you can’t make accounts for unexpected things to come up. CRA has strict rules on the filing deadline! Late-comers can miss out on government benefits and credits such as the Canada child benefit and GST/HST credits. Also, the earlier you file, the sooner you get that refund (if you’re getting one).
• Claim! Many Canadians end up missing out on money or deductions because they aren’t sure what they can claim. Maximize your return and always hold onto your receipts. Keep in mind things like donations to charity, child care expenses, disability credits, medical expenses and moving expenses.
• Don’t forget your income: a reminder that you must claim investment income or foreign income.
•  Seek the help of a professional: the best way to maximize your return and ensure you are filing your taxes correctly, is to seek the help of a professional. To date, the average tax refund is over $1,600!

Reminder of what’s new for this year:

For the 2016 tax year, there are several new rules. You now need to report the sale of a principal residence; the income-splitting family tax cut has been eliminated; and there are lower federal tax rates on income between $45,282 and $90,563 (from 22 per cent to 20.5 per cent). For a full list of changes, visit the CRA website. [Toronto Star]

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