Due to the COVID crisis, tax season has been extended.
Here are your KEY DATES:
Self Employed + Spouse/Common-Law Partner
Need more info? Check out the CRA's website
Now let's explore some common questions when it comes to tax season!
The answer is yes! Anyone living in Canada, an immigrant or not, will need to submit a tax return. If you are moving abroad, a seasonal worker or spend a considerable amount of time out of the country, you should check with the Canadian government you should check with the Canadian government here to find out which tax return you need to fill in.
Even if your income is tax-exempt, or you had no income for the past year, you still need to fill in a tax return.
It’s super simple and just like Remitbee’s online remittance services, you can file your Canada tax return online too. Here’s how.
First, you need to gather all your documents together.
• Payslips, pay stubs and statements from your employer
• Contracts from your clients if you’re self-employed.
• Receipts for business expenses (e.g. lunch you purchased for a client during a meeting).
• Other deductions and credits from your business/work.
Whether you’re submitting online or sending a paper tax return, you should always keep a paper copy of all your slips, receipts and documents at home.
You can submit your tax return in a few different ways:
• Online (our preferred method) via NETFILE, the government approved free software.
• On paper, in a document, you can download online or request a package from the government.
• By phone, if you’re on a limited income or fixed income from one year to the next. If you’re eligible, you’ll receive a letter invitation mid-February.
Whether you’re doing it online or on paper, go through the tax return page by page. Start with your personal information, including address, marital status etc.
Fill this correctly so you can find out what benefits you’re entitled to.
Then, fill in details about your income. It’s as simple as typing in the figures from your payslips and giving a total income and expense figure.
Double-check all your figures and personal details, then click submit online or send them through the post.
If you use NETFILE, you can make changes later.
If you’re due a tax refund, you’ll receive it in as little as 8 business days if you submitted online. If you have tax to pay, you’ll be notified and must pay by April 30th or June 15th if you’re a business owner.
According to a survey taken by Ipsos, “the number of Canadians who are $200 or less away from financial insolvency at month-end has jumped to 46 percent… as interest rates rise”.
If you’re feeling the pinch this year, consider submitting your tax return a good starting point to make some changes. Get on top of your finances, find corners to cut, and get 2020 off to a good start.
Check out our article on spending money wisely without cutting back on luxuries. It’s written with Christmas in mind, but you can easily apply it to birthdays and other costly celebrations!