With two weeks left in April, you might be stressing about filing your taxes! Why not let Coastal Tax take the pain and suffering out of figuring out your own small business, rental property, farm, or personal taxes?
If you are thinking of not filing taxes this year, here are some good reasons to file:
- If you are a parent receiving child tax benefit cheques, both parents must file returns to continue to be eligible.
- If your income is relatively low, you will be automatically enrolled to receive the GST credit (quarterly refund cheque) when you file your return. Your tax summary from Coastal Tax will include an estimate of what you will receive in 2016!
- If you are earning employment income and file tax returns, you increase your RRSP contribution room every year. Then you can take advantage of the tax savings of contributing to an RRSP account.
- Payroll programs can only estimate the amount of tax to deduct from your paycheques so you may have overpaid tax during the year and be owed a refund! A refund is even more likely if you have credits to use such as: tuition, student loan interest, childcare expenses, medical expenses, charitable donations, RRSP contributions, moving expenses, or are a first-time home buyer!
- Even if you will owe tax and can’t afford to pay it before April 30th, you can avoid the late-filing penalty by filing before the deadline! Then you can arrange to pay the tax you owe in installments but at least you won’t also be paying a penalty.
SELF-EMPLOYED: If you or your spouse carried on a sole proprietor business in 2015, your deadline as a couple is extended to June 15, 2016. However, if you have a balance owing for 2015, you have to pay it on or before April 30, 2016. This is not a problem if you are getting a refund, but it means that if you owe tax, interest on the balance owing will be charged from May 1, 2016 onward.
I hope to hear from you!
-Alicia Loewen, Coastal Tax