Stress-Free Tax Filing Tips for Canadians

Tax seasons in Canada bring a lot of anxiety and confusion. These seasons should be well understood and known in order to avoid delays in filing your income tax and submitting it on time. Avoiding stress and anxiety during tax season can improve efficiency and offer several benefits, including greater accuracy and timely filing of returns. To avoid stress caused by issues like incompetence and inaccuracy, you can follow these steps to simplify your tax filing process.

• Update your Personal Information

Your personal information while filing your taxes is a key requirement for successful submission and should be very accurate. Keeping your personal information up to date can help you avoid issues at tax time and ensure you continue to get the benefits and credit payments you are eligible for. If there is any information that is different from the previous tax file, such as a change of location, getting married, changing phone number, or even changing work occupation, you should let the officials know before you file your tax return.

The good thing about this is that you do not need to call or reach out to the officials to make the changes. They have provided an online portal known as “My Account”  where you can make these changes on your own. When registering for this portal, you can use the document verification service to verify your identity so as to have immediate access without having to wait for a CRA security code.

• Be Aware of Where to Get Your Tax Slips

A tax slip is a document that contains information about income received by a tax filer in a specific tax year and is issued by an employer. Most tax slips and receipts should be received by the end of February, including any T4 and T4A slips. If your tax slip is late or lost, you can access or view your tax slip online in “My Account”, so there should be no need to worry.  

• Understand How to Use Digital Services and Online Filing

Familiarize yourself with all these digital services so that whenever you need any help during the tax season, you can easily find answers without much struggle. These digital services have other services that help you file a return, change a return, make payments, and many more. There is a new service that helps chat with a live agent and ask them questions about personal taxes, benefits, and registered plans. This service is known as “Online Chat in My Account”.  

For a smoother experience, you can also consider using one of the best tax software for Canadians in 2024 to streamline the filing process and reduce the chance of errors.

• Be Aware of Important Dates

 If you miss tax deadlines, you may be charged penalties and interest, so you should know the important dates. The deadline for most people to submit their tax return and pay any taxes is April 30. Self-employed individuals (and their spouses or common-law partners) have until June 15 to file their tax returns, but any amount owed must be paid by April 30. You usually have until March 1 of the current year (or the next business day if it’s a weekend) to make RRSP contributions for the previous tax year. You can use calendar reminders or a financial planner to make sure you don’t miss any payments.

Check out this guide on the top tax filing deadlines Canadians must know to ensure you’re never caught off guard. You can also use calendar reminders or a financial planner to make sure you don’t miss any payments.

•  Ask for Support When You Need It

 If your tax situation includes a business, rental property, or capital gains income, it’s a good idea to speak with an accountant or tax professional. They may help you understand your investments and improve your financial returns. If your tax situation is simple and your income is low, you can use the Community Volunteer Income Tax Program for free tax help. They are frequently managed by people who have been trained by community groups.

• Submit Your Taxes on Time, Even If You Haven’t Paid

You should still file your taxes by the deadline, even if you can’t pay the entire balance right away. If you file your tax return late, you’ll have to pay a 5% penalty on the balance and an additional 1% for every month the return is late (up to 12 months). You will accrue interest on any balance remaining. If you’re unable to pay the full amount upfront, the CRA allows you to set up a payment plan. It’s essential to maintain contact with them from the beginning.

Learn how to avoid penalties for filing your taxes late by understanding your options and acting early. You can also review the CRA’s full list of penalties for filing your taxes late in Canada to know exactly what’s at stake.

• Examine Your Forms Carefully Before Submitting

Double-check your return before you press the submit button. Make sure your Social Insurance Number is correct, your banking information is right for direct deposit, and all your income and deductions are listed. This step should not be left behind because if you leave any detail behind, you will start experiencing other problems that would have been avoided. When you’re done, keep your tax return and the supporting documents to present if the CRA needs proof. Most companies keep their returns for six years, so it’s a good idea to do the same.

Conclusion

Tax filing is now made easier by following these steps. There’s no need for stress when it’s tax season. Before filing, ensure your documents are in order, prepare in advance, and try using CRA’s My Account or approved tax software for help. If you’re salaried, in school, retired, or self-employed, preparing for your future can make a big difference. Start early, stay organized, and file with confidence.  Be sure to refer to the top tax filing deadlines each year to stay on track.