It's that time of the year again and here we are another year staring at our T4 slips and asking that question….Where did all the money go? It's important to have your taxes filed on time and every year because there are some tax breaks that you can qualify for and receive rebates. These rebates won't make it to your mailbox if you don’t do your annual tax filing.
The perfect website to use to file your personal simple income tax returns is www.SimpleTax.ca. It's a friendly, fast and efficient way of having your personal taxes filed this year. Paying someone to do a simple tax return can be money used to invest in your RRSP or TFSA account. #SaveTheChange
In case you owe money to the CRA outstanding tax owing amounts can rack up penalties and interest. In case your curious the penalty is 5% of your 2016 owing amount plus 1% for every month that it's late for a maximum of 12 months. So a pro tax tip is to file your tax return even if you can't pay the total amount so you can avoid the late filing penalty.
If you choose to skip out on your taxes for multiple years you get yourself into deep waters where the penalties get really expensive. The penalty will be lesser of the 10% of the amount you did not file and or 50% of the difference between the understated tax and or related to the amount you failed to report.
False statements on your tax returns is serious and if it carries it's own set of tax troubles. However, the Canada revenue agency understands that mistakes happen and if you catch this mistake before the CRA than you can get away with just a simple slap on the hand! The program is called the voluntary disclosures program.
Key things to remember when filing your personal tax return this year.
- Did you report all your T4, T4E, T5 and other tax slips received in the mail?
- Remember that Presto and TTC passes are tax deductible not your regular trips. (i.e. the actual cards).
- Did you pay any rent for the year? That's tax deductible
- Did you take care of your parents and or child? That's also tax deductible.
- If you had any tuition or professional fees paid you should claim those expenses.
- One of the expenses rarely claimed is medical bills (i.e. prescriptions).
- Did you sell your primary residence in 2016? This is a new requirement and needs to be declared
- Do you own any foreign property? Please ensure to claim this on the form T1135.
Please use the following resources:
Interest & Penalties
Tax Software to use: