Whether you submit your own tax returns using software on your computer, have an accountant or use a walk-in tax service, there are many things you need to know about tax season 2019.
Here are some of the new changes as well as some tips for what you can do to help make this year’s tax return happen without a hitch.
Understand the deadline
April 30 is the date for most Canadians to file their 2019 tax return and pay any due taxes.
Normally, the self-employed deadline is June 15 but this year that is a Saturday.
So, if you are self-employed you get until June 17 to file (unless you owe taxes, then you still need to pay by April 30).
As tax season draws nearer, don’t panic. Just set aside some time to get your documents in order. You can usually gather and organize your papers and tax receipts in one weekend. Find an online checklist of documentation you need.
If necessary, contact companies to request missing receipts.
While you’re at it, learn from the chaos of gathering your paperwork this year and do better for next year starting now. Create a simple filing system to keep all your important documents in one place. You could use an accordion folder to store your charitable receipts, RRSP contributions, employment records and so on. You could also use a filing cabinet or even large envelopes to store all your receipts for the year.
Not only is this helpful come tax season, but it is also a good idea to have your documents handy in case you need to make a warranty claim on an item you bought and so on.
Add to your RRSP
Many Canadians wonder when is the last day they can contribute to their RRSP plans. The truth is that you can put money in whenever you like. Yet, in order to get a tax refund for your 2019 tax return, the cut-off for adding funds is March 1.
Be aware of new tax breaks
For the 2019 tax season, there are several new and improved tax breaks that you might be able to take advantage of.
Accelerated capital cost allowance rates
Small business owners and self-employed Canadians may get more money in their pockets this year. The new capital cost allowance rates allow Canadians to claim more for office furniture, business equipment and computers.
This allowance will reduce your taxable business income by accounting for the cost of eligible equipment.
Climate action incentive
If you live in Manitoba, Ontario, New Brunswick or Saskatchewan, good news! You are in for an extra tax credit this year.
These funds will help offset the cost of the carbon tax in these provinces where they don’t have an established carbon price. The government is putting the cash in Canadians’ pockets before the new carbon tax begins in April.
According to the federal government’s calculations, the average household in Ontario will get $244 more but get $300 on average as a climate action incentive tax credit.
Of course, the amount of tax credit you will get depends on where you live and your family size.
We hope these tips will help you understand what you need to do to avoid stress this tax season.
How early do you file your taxes? Let us know in the comments.
Graduated from the University of Toronto with an Honors BA English Specialization and has completed several publishing courses at Ryerson University. She is a proofreader, editor, and content writer based in London, Ontario.