The tax filing deadline is fast approaching. Here's what you need to know to file your taxes on time.
For the vast majority of individuals, the deadline to file their 2022 tax return is April 30, 2023. However, since this date falls on a Sunday this year, the deadline has been extended to May 1, 2023. If you owe amounts to the Canada Revenue Agency or Revenu Québec, you must also pay these amounts by this same date.
For a self-employed person and his or her spouse, the deadline for filing a tax return for the year 2022 has been extended to June 15, 2023. However, if you owe amounts to the Canada Revenue Agency or Revenu Québec, you must still pay these amounts by May 1, 2023.
First, it is very important to tell your professional about any changes that have occurred for you during the year. Did you go back to school? Did you have a child? Does someone in your family have a disability? Do you have a child in school? Are you in higher education? All of the answers to these questions could be very relevant to your tax filing.
Here is also a non-exhaustive list of the documents you need to provide for filing your taxes:
If you do not pay your taxes and/or do not file your tax returns on time, the Canada Revenue Agency and Revenu Québec may charge you interest and penalties for late payment and/or late filing. Here are the possible interest and penalties:
Therefore, interest on taxes will begin to accrue, if you have an unpaid amount, as of May 2, 2023. Late filing penalties and interest on penalties will begin to accrue on May 2, 2023 for most individuals and on June 16, 2023 for self-employed individuals.
The main reason to file a tax return on time is to avoid all the interest and penalties that can mount up very quickly.
If you don't owe any tax, interest or penalties for late filing do not apply to you. However, it may still be to your advantage to file your tax returns.
In particular, you may be able to access tax credits or benefits (GST/HST credit, Canada Child Allowance, Canada Workers' Compensation, etc.) that are only available after you file your tax returns.
In addition, it may be advantageous to file your tax returns in order to start the limitation period. Once the return is filed, the Canada Revenue Agency and Revenu Québec generally have 3 years to reassess. After that time, the tax year is statute-barred and nothing more can be done.