Want to avoid financial penalties at all costs? If a taxpayer does not pay their taxes on time or fail to meet their tax obligations, the Canada Revenue Agency (CRA) has the authority to impose financial penalties, such as late payment penalties and interest.
Meeting tax payment deadlines ensures your financial stability by avoiding the accumulation of tax debt and preserving your credit standing. That's why we've come to your rescue! Find out the critical tax deadlines and all about tax season 2024 in Canada! Are you ready to succeed in adult life?
What time is Canada's tax deadline?
In Canada, tax payment dates may vary depending on your employment status, such as whether you are an employee or self-employed. Most Canadians must file their tax return before April 30, 2024, and payment is due April 30, 2024.
However, self-employed Canadians have until June 15 to file their income tax. Whether you are self-employed or salaried, remember that if you owe taxes, you must settle them before April 30, 2024.
The deadlines for filing and paying tax returns are usually midnight local time on the Canada Revenue Agency (CRA) specified date. However, we recommend you review the CRA's specific tax deadlines or consult a tax professional for more precise information about the applicable deadlines of the current year.
When can I file my 2024 tax deadlines?
The deadline for filing your 2023 tax return is April 30, 2024 (depending on the year), so you are expected to file your return by April 30 of each year. On the other hand, if you are self-employed in Canada, you can file your income tax return until June 15 of the current year.
If you wish to file your taxes early, the CRA has an online service called NETFILE, which electronically receives returns filed on February 19. E-filed returns must be submitted by midnight local time on the due date. This will help you check off another task from your to-do list!
You should be aware that there are some exceptions to the due date for filing your tax return, for example, if the due date falls on a Saturday, Sunday, or holiday. If April 30 falls on a weekend, the CRA extends the deadline to the next business day.
Therefore, your payment is considered on time if received on the first business day after the due date. For more information, visit the Due Dates and Payment Dates page on the Government of Canada website.
It is highly recommended to file your return early to avoid being charged penalties and to avoid an interruption in the payment of your benefits and credits, such as goods and services tax (GST), the harmonized sales tax (HST), Canada Child Benefit (CCB), and Old Age Security Benefits (OAS).
Important Tax Dates for 2024
Pay attention below! Knowing the tax dates is critical for taxpayers in Canada. For 2024, several essential tax datelines are highlighted on the Canadian tax calendar that requires your attention and proper preparation.
These dates range from deadlines for filing tax returns to deadlines for making contributions to savings accounts and investment plans. Let's take a look at them below:
2023 Tax Filing Dates
They refer to the deadlines or deadlines established by the tax authorities for taxpayers to file their tax returns. It is critical to comply with these dates to avoid possible penalties or interest for late payment.
- February 19, 2024: This is the first day to start filing your 2023 tax return electronically. If you file it on paper, you should receive your income tax package by this date.
- February 29, 2024: The deadline to contribute to a Registered Retirement Savings Plan (RRSP), a Pooled Registered Pension Plan (PRPP), or a Specified Pension Plan (SPP).
- April 30, 2024: Deadline to file your taxes
- June 15, 2024: Deadline to file your taxes if you are self-employed
2023 Tax Payment Dates
These refer to the deadlines established by the tax authorities for taxpayers to pay taxes due. Complying with these dates is critical to avoid possible penalties or interest for late payment.
- April 30, 2024: Deadline for paying your taxes to avoid penalties.
- April 30, 2024: This is the payment deadline if you owe money to the CRA.
- April 30, 2024: If you are self-employed, even if June 15 is your filing deadline, the deadline to pay any balance owed is April 30.
Discover the most common tax deductions for businesses in Canada here.
What is the penalty for filing taxes late in Canada?
Filing taxes late in Canada leads to interest on the balance due. If you have a balance owing from 2023 and cannot pay it by April 30, 2024, the CRA will charge you interest compounded daily beginning May 1 of this year. You need to know that the interest rate the CRA charges concerning balances due may change based on prescribed interest rates.
On the other hand, you may also be penalized for filing your tax return after the due date. If you file your return late and have a balance owing, you will be charged a late filing penalty. Late filing can also cause delays in your tax credits in Canada.
The penalty for late filing of your income tax return is 5% of your 2023 balance due, plus an additional 1% each month past the due date.
If you cannot comply with your tax obligations due to unavoidable circumstances and seek to request a waiver of penalties or interest, you may file a request with the CRA.
For more information about interest and penalties, visit the due and payment dates section of the Personal Income Tax section of the Government of Canada's website.
Find more information on tax deadlines!
Need help figuring out where to start when filing your taxes? Navigate the tax season stress-free! Below are some recommendations that will help you come out ahead and with much more clarification before the tax season in Canada. The tax world doesn't have to be a maze anymore!
- Keep accurate records: Keep detailed records of all your income, expenses, and deductions throughout the year. This will help you have the information you need to file an accurate, timely return and make accessing tax credits and employment tax deductions easier.
- Know your tax obligations: Through tax compliance, we can prevent penalties or fines from Canadian tax authorities and avoid costly and lengthy tax contingencies. Knowing the deadlines to file and pay your taxes, understanding what types of income are taxable, and what deductions you can claim will always be convenient in case of any clarification.
- Use CRA resources: The Canada Revenue Agency (CRA) provides you with tax guides, forms, and online calculators so that you have no excuse for not being informed and fulfilling your tax obligations by filing an accurate tax return.
- You are not alone! If you find that managing and complying with your taxes is a parallel universe to your own, consider hiring a tax professional, such as a Certified Public Accountant (CPA). In addition, the CRA offers Free Tax Clinics, where eligible people can get their tax returns done for free by volunteers.
- Don't leave it to the last minute. Planning is an essential step for properly paying your taxes. Gather all the necessary documentation to easily access possible deductions and correct any errors on your tax return.
Following these recommendations will make the Canadian tax season easy, and you can promptly ensure you meet all your tax obligations. If you need extra support from professional accounting and tax experts, visit Superprof.
With Superprof's online platform, you'll find excellent accountants across Canada to help you understand everything related to accounting, from tax liabilities to tax credits and how to fill your taxes in Canada. Learn all about accounting with the best accounting experts near you with Superprof!
Wrap up!
To conclude, it is crucial to be aware of important tax dates in 2024 in Canada, as this ensures timely compliance with tax obligations and avoids potential financial penalties for late payments and a period of constant anxiety.
With the tax filing deadline set for April 30, 2024, and the deadline extended to June 15, 2024, for the self-employed, it is essential to prepare early and keep accurate records of your income and expenses. Take advantage of the resources provided by the Canada Revenue Agency (CRA) and seek help from tax professionals to facilitate your tax filing process.
Find the ideal support in everything you set out to do with Superprof in Canada! With Superprof's online platform, you'll find good accountants offering accounting classes across Canada to help you understand everything related to tax deadlines and credits, tax deductions, and extra resources to become a master in your tax return. Find the best accounting experts near you with Superprof!
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