Let’s be honest, we’re a bunch of procrastinators. And I know that you’re leaving it until the last few weeks to file your Canadian tax return. So when exactly is the deadline I hear you ask? And how much wiggle room do you have to work with?
The boring answer…
is that you should file your Canadian tax return before April 30th each year. This year, because April 30th is a weekend, the last official day is May 1st 2017. So if you’re filing on paper and your tax return is stamped May 1st, it will be considered on time.
The answer that nobody talks about that’s a little bit more exciting….
is that you can file your tax return any time of year, even after the deadline! Actually you can file back as far as ten years – did you know that? But an important factor to remember is that this is not a smart idea to do this if you are owing money to the CRA. Why? Because you’re gonna pay a 5% penalty for late filing plus 1% interest per month on the amount owing. Not ideal. The CRA can also take away your provincial medical plan or your GST cheques/ other benefits if you don’t pay this on time.
But if you’re due a tax refund in Canada, technically you have up to 10 years to file your tax returns. I mean, it’s not something that I would personally want to do, but it’s possible.
How do you know if you’re due a tax refund?
Well, there’s a billion ways to do this, and most of them are online. You can calculate it yourself (but then you might as well file the tax return there and then, right?!), or you can use online software programs or service providers. Some companies even offer free online and free full estimations (we’re looking at you Taxback.com!). You can get your full estimation with taxback.com here, and they’ll even give you a discount if you file before the deadline (May 1st!)! Win win, right?
Psssssst… Make sure to mention us to get your discount! 😉
Any specific tax questions? Comment below! 🙂
We also have some more tax blogs:Starting a Job in Canada from a Tax Perspective Declaring Foreign Income in Canada What does a T4 mean? Important Dates in the Tax Year Determining your Residency Status Tax Tips and Myths 6 Tax Tips Spending your Tax Refund!