Getting through tax season can be quite the journey. There are a variety of things to consider and a number of important deadlines to be aware of. We’ve created a list of the key dates you need to know!
February is an important month for employers. They must provide their employees with their T4 slips by the last day of the month (February 28th).
It’s also a great time to start thinking about getting your taxes done early. The Canada Revenue Agency or the CRA, opens their electronic filing system, NETFILE, on February 18th. If you owe taxes it’s great to get a jump on your return so that it can be properly assessed before the payment deadline. If you don’t owe taxes, it’s still a good idea to file your taxes early. The sooner you file, the sooner that tax refund hits your bank account! That’s reason enough for us!
The deadline for Registered Retirement Savings Plan or RRSP contributions for the 2018 tax season is March 1st, 2019. Whether you were contributing regularly to your RRSP throughout the year or not, now is a good time to check in and see where things stand. You can contribute 18% of your earned income to your RRSP so be sure to check in before March 1st to see if you have more room to contribute. From there, you can decide if additional contributions before the deadline are an option and if it’s the right decision for you! A registered accountant can help advise you on this if you’re uncertain.
The deadline to file your taxes with the CRA is April 30th unless you are self-employed or you are the spouse of someone who is self-employed. In this case, your deadline is June 15th. However, regardless of whether or not you or your spouse is self-employed, if you owe the government taxes they must be paid by April 30th.
Late tax payments are subject to interest fees. Specifically, the CRA charges an extra 5% on top of the taxes you owe and an additional 1% for each late month. This is why it is smart to file early and pay on time!