Tax Filing 101
Tax filing season is upon us once again! Here is some basic information that you have to keep in mind as we get into the thick of things this tax season.
Who must file:
If you have to pay tax for 2015, you must file an income tax and benefit return. Even if you have no income to report, it is still recommended that you file your income tax return as you may be eligible for certain benefits.
When to file:
Most Canadian taxpayers must file their income tax and benefit returns for 2015 on April 30, 2016. But since this day is a Saturday, the CRA will consider your return as filed on time and your payment to be made on time if your tax return is received or postmarked by midnight on May 2, 2016.
If you are a self-employed individual, you and your spouse must make your payment for any balance owing for 2015 on or before midnight of May 2, 2016, since April 30th is a Saturday. June 15, 2016 is the due date for the income tax returns of all self-employed individuals and their spouse or common-law partner.
Remember, if you don’t file your income tax return on time, your benefit and credit payments such as the Canada child tax benefit and GST tax credit may be interrupted. Also, if you fail to pay any tax owing before the due date, the CRA will charge you a late-filing penalty. The penalty is 5% of your 2015 balance owing on the due date of the return, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
In addition to this, if you have already been charged a late-filing penalty on your return for 2012, 2013, or 2014, you may be charged 10% of your 2015 balance owing, plus 2% of your 2015 balance owing for each full month that your return is late, to a maximum of 20 months.
Remember, if you have any tax filing questions and need help with filing your taxes, you can always contact KD!