Canadian tax season has arrived! Not feeling excited yet? Well maybe this post will start a little fire underneath you to get you ready to file your 2016 income tax return.
Before we get started, there have been cases of fraudulent phone calls and scam emails pretending to be from the Canadian Revenue Agency. They’re not. Be on guard. If you’re contacted by a source claiming to be the CRA, don’t reply before checking this information first.
2017 Income Taxes Deadline
The official due date for individuals to file is April 30th but because the 30th falls on a Sunday this year, you get an extra day. Your return and any amount owing are considered on time if postmarked by 11:59pm on May 1st, 2017. Not that we’re advising you to wait until the last minute. There are a lot of advantages to filing early!
April 30th, 2017 = May 1st, 2017
While the due date for the Canada Revenue Agency (CRA) isn’t until the first of May, you can file your tax return as soon as you have all of your tax slips and information available. It’s worth it to get a head start on the filing will avoid rushing at the last minute to submit your return.
Seriously, don’t delay filing! Late payment on taxes owing just means fees and penalties… And if you’re expecting money back this year, why not get your taxes in early and enjoy the extra cash back in your pocket? Exactly. Get started now.
Online filing is definitely the fastest and easiest ways to complete your return. You should check out our TAXplan App; it allows you to submit all of your information digitally and then a tax professional will optimize your information submit your taxes for you. Filing on time with TAXplan is an ideal way to minimize how much you have to pay, and maximize how much you’ll get back!
TAXplanning Tip: If you’re receiving cash back from your 2016 return, consider rolling that money right into an RRSP for 2017.
If you or your spouse/common-law partner are self-employed, your tax timeline will be a bit different: June 15th, 2017. But keep in mind that any amount owing on your personal return is still due by 11:59 am on May 1st, 2017.
Also, depending on your annual income, you may have to make tax installments throughout the year.
Penalty Warning: Repeated Failure to Report Income
No funny stuff. Be sure all of your income is accurately accounted for. If fail to report on income and it amounts to $500 or more, you can be charged a penalty and the specific penalties have now changed. Interest and penalties are calculated on a daily basis and they can add up quickly!
Don’t get caught paying more than you need to: report all of your income thoroughly and carefully. The TAXplan app will help you report your income easily and accurately, and your file is always checked and optimized by a TAXpro. Get started now.
Have you considered contributing to a Registered Retirement Savings Plan (RRSP)? It’s one of the of best ways to save money on your personal tax. The great thing about an RRSP is that you save on any taxes owing today while also putting money into a secure investment that will help you save money for your future.
- 18% of your earned income in 2015; or
- $25,370 – the 2016 tax year maximum contribution amount.
The timeline for RRSP contributions is 60 days after year end. That means that you still have time to make RRSP contributions to offset 2016 taxes, but time is running out! The RRSP deadline is March 1st, 2017.
So in summary, the important 2017 tax dates in Canada are:
- March 1st, 2017 – RRSP deadline
- May 1st, 2017 – Income Tax deadline
- June 15th, 2017- Self-Employed Tax deadline
Just remember that the best way to file your taxes this year is to work with a tax professional. It’s also the best way to ensure that you’re optimizing your financial situation for the most strategic and beneficial tax outcome. The most convenient and cost-effective way to submit your taxes to a professional is by using the TAXplan app. It’s the only app in Canada that connects you with professionals–TAXpros–who know the ins and outs of the Canadian tax laws and regulations. Our TAXpros will ensure that you get the most money back and pay the least amount of taxes possible every time. Click here to get started now.