Today is April 20, and the tax deadline is ten short days away.
It’s important to file your taxes by April 30th, even if you owe money, but know you can’t pay the balance right away.
The primary reason is to avoid any interruption to benefits you are receiving, including COVID-19 relief payments. Eligibility for programs such as the Canada Child Benefit, GST Credit, and any other provincial specific programs are based on your 2019 and 2020 tax returns. Filing on time helps to avoid having these payments stop while CRA validates your eligibility.
If you are not filing on time because you have a large amount owing, CRA will work with you to come up with a payment arrangement, and they are more accommodating if you file on time.
If your total income in 2020 was $75,000 or less and you received at least one COVID-19 relief payment, you will automatically receive interest relief on your 2020 taxes owing until April 30, 2022, if you file by April 30th, 2021. This relief will not protect you from penalties for filing your taxes after the deadline.
The Mobile Accountant will be accepting tax returns until April 25th to guarantee they are filed by April 30th deadline, and I have a few spots left.
Make the most of your tax return and reach out today to get started!