Read our short articles on tax time crib notes.
Listen to this Podcast
Tax Time Crib Notes
The deadline for filing your 2019 personal tax return is just around the corner. Typically, the deadline to file is April 30. Due to COVID-19 the filing due date for individuals has been deferred until June 1, 2020. Learn more here.
If you file your own taxes or are confused and don’t know where to start, here’s a quick primer to help you file your personal tax return.
- Submit your return on time. If you owe taxes, you’ll pay a late-filing penalty of 5% of the tax owing plus 1% for each month you’re overdue, up to 12 months. You’ll also pay interest on the amount owing, plus on the late-filing penalty, starting May 1. Interest is compounded annually. If you miss more than one year, you’ll pay even more.
- T4 and T5 slips are supposed to be mailed by February 28. Collect all your slips before you start and keep everything in one place. (This will also prepare you in case the Canada Revenue Agency asks you to provide any slips or receipts.) Follow up with financial institutions and other issuers if you believe something is missing.
- If you’re married or living common-law, consult with each other before you file. For example, if you are working make sure that the one with the higher income claims certain credits — and make sure you don’t both claim the same thing. If you’re retired and there’s a large difference in income, you could jointly elect to split pension income.
- Check last year’s Notice of Assessment for important information such as RRSP contribution limits and repayments to the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP).
- Gather charitable receipts. You’ll receive a federal tax credit of 15% on the first $200 of donations, and 29% of the remainder. (There’s also a smaller provincial credit.) Consider pooling receipts with a spouse (letting the higher income-earner claim), or carry forward up to five years, if that gets you a higher tax credit. If you’re a first-time donor you may be able to get an additional 25% on the first $1,000 of donations.
- Collect all medical expenses for yourself, your spouse or common-law partner and minor children. You’ll get a tax credit for amounts over 3% of your net income or $2,397, whichever is less. You can make the claim for any 12-month period that ends in the 2019 tax year. (If you’re also claiming for a dependent, you need to use the same 12-month period.) Check which expenses you can claim before you submit.
- Claim RRSP contributions. Deposits made in January or February of this year can be claimed now or carried forward to next year. Check last year’s Notice of Assessment to confirm how much you can claim without penalty.
- Be sure to claim all that you are eligible for if you are a full-time student or graduate of a recognized post-secondary institution, if you paid union dues or certain professional membership fees, if you bought a home last year, if you care for an elderly parent or a family member with a disability.
- Check your return, tax-filing software or the CRA website for complete lists of what is claimable and what is not.
- If using tax filing software, be sure to check over all fields before filing, including auto-filled fields, to ensure all information is correct and up to date.
If you have any questions or your tax situation is more complex than most, don’t hesitate to reach out, especially at a time like this. At Carte Financial Group we have a team of tax experts to help with complex situations.
We hope you enjoyed our article. If you want to keep up with the latest financial news articles, check our News Blog.
More Financial News & Events
How to Find & Work With The Right Financial Expert
Jan
7 Steps to Budget, Set and Achieve Your Financial Resolutions in 2021
Jan
Are you over insured?
Jan
January Newsletter: How to Start 2021 Strong
Jan
How to Support a Charity During the Holidays
Dec
Top Strategies to Start 2021 Strong
Dec
Post-Divorce Holiday Spending Tips to Keep you in the Black
Dec
Christmas Gifts: Best Ways to Budget during the Holidays
Dec
Top Three Financial Risks to Protect Yourself from
Dec
11 Small Businesses To Support This Holiday Season!
Dec
Why saving for your child’s education is more important than ever
Dec
Top Passive Income Ideas and Guide to Build Your Wealth
Nov
December Timely Tips: How to Get a Headstart in 2021
Nov
How to File Taxes in 2021
Nov
Movember: Men’s Challenges During COVID
Nov
Taking the Reins of Your Aging Parents Finances: What You Need to Know
Nov
Using technology to help your business thrive during COVID-19 and beyond
Nov
Minority Women During COVID: Building Resilience
Oct
Movember Newsletter and Timely Tips: Men’s Challenges during COVID
Oct
Second Wave Grants for Small Businesses and Management Tips
Oct
Gender Gap During COVID
Oct
I’m Recently Divorced, Now What?
Oct
How to Create a Successful Side Hustle during COVID
Oct
Financial News of the Month: September Timely Tips
Oct
How COVID is influencing home ownership
Oct
How are Millennials (Gen Y) Impacted by COVID?
Sep
Financial Implications of Common Law Relationships
Sep
Team Management during COVID: Effective Tips and Insights
Sep
The Great COVID School Impact: How are Schools Changing in 2020?
Sep
Gifting Assets to Adult Children After Divorce
Sep
How to Help Kids Financially Without Hurting Your Bottom Line
Sep
Grants, Funds and Online Education: Student Funding during COVID
Aug
Financial News of the Month: August Timely Tips
Aug
Job Loss & Employment During COVID
Aug
Mental Health and COVID: Breaking Down Stigmas, Mindfulness and Available Resources
Aug
Good News About Critical Illness and Life Insurance
Aug
Dine in Restaurants and Phase 3 of COVID: Patios, Pancakes & Rum Punch!
Aug
Retirement During COVID: Insights and Tips from Instagram Live with Jackie Porter
Jul
July Timely Tips
Jul
Small Businesses and Phase 2 of COVID
Jul
Insights and Tips from Instagram Live with Jackie Porter: Vacations during COVID
Jul
COVID Income Assistance Guide: How to Deal with Sudden Income Loss
Jul
Working Moms During COVID
Jul
June Timely Tips
Jun
Why industry can’t pay lip service to diversity anymore
Jun
Second Career Advice: Tips and Insights from Career Advisors
Jun
Preparing for the Upcoming Recession 2020– What You Need to Know.
Jun
The COVID Retirement: What to Expect and How to Prepare
Jun
How Social Distancing May Affect People Financially: COVID Guidelines
May
How Automation Can Impact Your Survival of a COVID Recession for Businesses
May