The Canadian government has announced that the deadline to file and pay their taxes is approaching fast. So, it is crucial for all Canadians to file their taxes as early as possible so they can avoid penalties and fines.
We have compiled a list of five reasons why Canadians should file their taxes early.
1) The deadline date for filing and paying your taxes is April 30th If you do not pay your taxes by this date, you will be charged a penalty on top of the amount of money owed.
2) You may be eligible for a tax refund if you paid too much tax throughout the year and owe less than $3,000 in provincial or territorial tax on income from sources outside Quebec
3) It’s always better to find out about
What are the Reasons to File Taxes Early?
Farmers need tax advice for farmers to make sure their farm taxes are filed on time, every year. If you are a farmer or rancher in Edmonton, Alberta, there are some simple steps to take to get your taxes done right.
Every Canadian farmer needs to know the basics about filing taxes. This is true even if you don’t have a complicated farm with many deductions and expenses. The simplest way to file your taxes is by filing early in the year when you have all of your receipts and documents in front of you.
1. Get a Higher Refund
The Canadian Income Tax System can be quite complicated and there are many ways to maximize your refund. Canadians tend to overpay tax during the year because they forget about deductions and credits that would reduce their tax liability even further. They don’t even know how to file their taxes or what type of deductions or credits they are eligible for, not to mention that the process is complicated. So generally, they end up overpaying their taxes by using Tax-Free Savings Account (TFSA) contributions, RRSP contributions, public transit passes, charitable donations and other deductions.
It’s well worth it to take a few minutes at the end of each month throughout the year to keep track of your expenses and your income so you can make sure you
2. Set Aside Money For Emergencies
An emergency fund is an important financial goal to work towards. It provides a safety net for unexpected events in our lives, like unemployment or health care emergencies. With an emergency fund, you can avoid taking on the burden of debt when you are in crisis.
Having money set aside for emergencies is one of the most important aspects of personal finance. This money should be available when you need it and not consumed by other monthly expenses.
3. Avoid CRA Interest Accrual on Tax Refund Payments
If you use a credit card to pay your tax bill then you could be subject to significant penalties. It is advisable that you use the right credit card which allows you to avoid interest accrual on tax refunds.
This includes:
-A 0% APR card for at least 12 months
-A 12-month, no interest or penalty payment plan with your bank or credit union
4. Be Prepared for Crop Insurance Premiums
The reason for the increase in crop insurance premiums is the increase in the number of acres that are insured.
Crop insurance rates can be lower than ever before. It doesn’t matter if you are a beginner or an expert, crop insurance marks a person as “experienced” and lowers their rates.
5. Avoid Late Filing Penalties and Interest Accrual
A late filing penalty is a charge imposed on your unpaid taxes, and it can be added to any tax balance owing by the Canada Revenue Agency (CRA) at the time of filing. It also increases the interest rate on your unpaid taxes.
The late filing penalty is applied when you file your return after the deadline, and it’s calculated as 5% of the balance owing for each month that passes between when you should have filed and when you finally do file. It applies to all returns and must be paid in full at the time of filing. The late-filing penalty does not apply if an extension was received or if there is a reasonable explanation for why you filed your return late.