As the April 30 deadline looms, Canadians are feeling the pressure to file their 2023 income tax returns. But fear not, because there’s still time to get everything in order. Yahoo Finance Canada caught up with Stefanie Ricchio, a chartered professional accountant and tax expert at TurboTax Canada, and Gerry Vittoratos, national tax specialist at UFile, to provide some last-minute guidance for those scrambling to meet the deadline.
Know the Deadlines and Penalties Understanding the consequences of filing late is crucial, according to Ricchio. Employees must file by April 30, while self-employed individuals have until June 17. However, regardless of your filing deadline, any outstanding balance must be paid by April 30. Failure to do so results in daily compounded interest at a rate of 10%, plus late-filing penalties from the Canada Revenue Agency (CRA), which can be quite hefty, especially for repeat offenders.
Claim Your Deductions with Confidence Vittoratos emphasizes the importance of not overlooking potential deductions, which is a common mistake, particularly when rushing through the process. He recommends using your previous year’s tax return as a reference and employing a checklist to ensure you’ve accounted for all necessary documents.
Start Now, Don’t Wait Procrastination is not your friend when it comes to taxes. Vittoratos advises getting started as soon as possible to avoid any last-minute surprises. Allotting sufficient time for gathering documents, data entry, and review is essential. Waiting until the eleventh hour increases the risk of overlooking crucial details.
Additional Tips for Last-Minute Filers
- File electronically using certified tax software or the CRA My Account portal for a smoother process.
- Familiarize yourself with any changes for the current tax year, such as home office expense filings.
- If you’re unable to pay your tax bill, consider negotiating a payment plan with the CRA but still submit your return on time.
- Start preparing for next year’s return by organizing relevant receipts and documents throughout the year to streamline the process.
With these tips in mind, you can navigate the final stretch of tax season with confidence and ease.
