While it’s comforting to think that the tax season is many days away, the filing deadline is just around the corner. The time of the year when you have to report to the government your eligible expenses and income can be stressful. Waiting until the last minute is not a good strategy. Therefore, collect all the relevant receipts in advance and plan your taxes to avoid unfavorable situations. Do your research to know everything you need to file your taxes this year. Planning ahead is the only way to develop tax-saving strategies that may help you reduce your tax bill.
Deadlines for filing taxes
If you’re not ready to tell the government about your income last year, or how much you’ve already paid in taxes, consult a tax planning expert at your earliest convenience because the last day to file for most individuals is the 30th of April. The best approach is to have your documents ready and organized in advance of the tax deadline; don’t wait for the last day. Failing to file your return on time can lead to penalties and an increased tax bill.
In case you owe taxes, you must file several weeks in advance of the deadline. If you owe taxes and file late, you should be ready to pay interest. Self-employed individuals generally have until June 15 to file. However, they need to pay the outstanding taxes by April 30. If you’re expecting a big refund, remember that Canada Revenue Agency (CRA) starts accepting electronic returns from the 18th of February.
Whether you’re expecting to get a refund or have a big tax bill, file early in both cases. It will allow you to plan on your tax installments. The earlier you file, the fewer extra charges you’ll pay.
Deadlines for contributing an RRSP
You can contribute to your registered retirement savings plan (RRSP) account anytime. However, if you’re looking to get a tax refund for your RRSP contribution, the deadline is the 1st of March. Moreover, the last day you can contribute to your own RRSP, when you turn 71, is December 31st.
How to file taxes
You can adopt both traditional and advanced options to file taxes; you can either send in forms using a mail service or you can use the internet to file your tax return with the CRA. It’s recommended to have your tax return professionally prepared by a certified tax planning company. The tax planner may send the completed tax return to the CRA on your behalf.
Don’t forget to claim every possible deduction. An experienced financial planner will help you identify additional deductions that you haven’t considered. To avoid stress and reduce your tax bill in 2019 and beyond, talk to one of our tax planning experts in Edmonton. Kewcorp Financial helps individuals and businesses streamline their financial matters ranging from taxes and investments to retirement and estate planning. Contact us for more information!