Can I Still File My Taxes?
If you are anxious about having missed the tax filing deadline, you are not alone. It's a common concern, but it’s important to remember that you can still file your return. This guide will provide you with the necessary steps to file late with confidence.
Key Points:
Late tax returns can still be filed.
Penalties may apply for late filing, but interest relief can be requested.
No fees or penalties are charged if you don't owe taxes or are due a refund.
Filing After the Deadline
Even if you've missed the deadline, a certified CPA can still assist you in preparing and filing your tax return. They will gather all relevant information from you and submit your return electronically to the CRA using the EFILE system.
Important Note: If you expect a refund, filing late will not incur penalties or interest. However, if you owe money, file as soon as possible to avoid late-filing penalties and interest charges.
Did you know?
Blackspark offers a no-obligation, free call with one of our licensed CPAs - they’ll advise you on your personal taxes and provide an upfront price to prepare your tax return.
Specifics for Self-Employed Individuals
For self-employed individuals, the tax return is due on June 17, 2024, but any outstanding balance must be paid by April 30, 2024.
Required Documents for Filing
A professional accountant can access most of your tax slips (T4, T5, T3, etc.) directly from the CRA after you authorize them, typically using an electronic signature. They may also need additional information for deductions and credits, such as rent payments, property taxes, dependents' information, and other relevant expenses.
No Taxes Owed?
If you do not owe taxes, there will be no penalties or interest for late filing. However, refunds and certain benefits like the Canada Child Benefit (CCB) or the GST/HST credit will be delayed until you file your return.
Taxes Owed?
If you owe taxes, they are due by April 30, 2024. Filing late will result in penalties and interest. You can set up a payment plan with the CRA if you cannot pay the full amount immediately.
Penalties for Late Filing
The CRA charges a 5% penalty on your balance due plus 1% interest for each month your return is late, up to 12 months.
Example: If you file six months late and owe $2,000:
Penalty: 5% of $2,000 = $100
Interest: 6% of $2,000 = $120
Total due: $2,220
Tip: Paying as quickly as possible reduces the amount of interest charged. Payments apply to the oldest debt first.
Instalment Payments
You can make instalment payments by contacting the CRA to arrange a suitable plan. Payment options include:
Online banking: Add CRA as a payee and use your Social Insurance Number (SIN) as the account number.
CRA My Account: Make direct payments from your bank account or set up instalment payments.
In-person: Pay at major banks with a remittance voucher or original remittance slip.
Requesting Penalty and Interest Relief
Under certain circumstances, the CRA may waive penalties and interest. It's advisable to notify the CRA of late or incorrect returns as soon as possible. Options include:
Requesting a waiver of penalties or interest.
Utilizing the CRA’s Voluntary Disclosures Program (VDP) to report any unreported income or mistakes from previous years.
Remember, the CRA aims to assist taxpayers. You have support available to navigate these challenges successfully. If it still seems daunting, a certified CPA may be the best solution for you; they will guide you through the process and make sure your tax filings are brought up to date.
This blog post is intended to provide general information only and should not be construed as tax advice or opinions. Always consult a qualified accountant before making any decisions regarding your tax situation.
