Just a couple of weeks ago, CloudTax answered some of the most common questions for people beginning their tax preparation.
The Canada Revenue Agency says about 9 million returns have been filed so far, which leaves another 20 million or so to find their way to processing centers before the end of April.
As Canadians appear to stall on filing, here are some of the questions we are getting.
“I’ve completed my taxes, but haven’t filed yet because for the first time ever, I owe some money. How do I handle this”-Rajeev, Golden, BC
The first and most important thing to remember is to file your taxes on time! No matter when you send your return to CRA, any balance owing isn’t due until April 30th/. Filing after that date can result in a penalty of five per cent of the balance owing. Even if you can’t pay the full amount right away, that’s an easy saving. If you can’t pay the full amount, reach out to the Canada Revenue Agency to see what arrangements can be made. Running away won’t solve anything.
For more information on how to pay CRA, please follow this link.
“My daughter only made a few thousand dollars last year…not enough to pay any taxes. There’s no need to file a return is there?” -Karin, Moncton, NB
At CloudTax, we’re a proponent of everyone gaining an understanding of the tax system. What better way for a young person than filing their return? There are also some very practical reasons for your daughter to file. Even if she doesn’t owe any taxes this year, any amount which may have been deducted from her paychecks could result in a refund. And on a more selfish level, filing her taxes will help her in the future. The amount she will be allowed to contribute to a Registered Retirement Savings Plan (we know, a long way down the road) is determined by the amount of income she has earned. Filing a return now will grow that opportunity.
There are a number of benefits you may qualify for. To learn more about those benefits, follow this link.
“I’ve always dropped my taxes off at a physical office. But with new restrictions in my province, and the state of the pandemic, I’m a little leery of that personal contact.”-Tony, Windsor ON
It’s understandable after a year of restrictions and uncertainty you would be a little concerned. Technology, however provides some easy solutions for you. CloudTax is among the tax preparation companies which offer you a completely contact-less experience. If you want one of our experts to complete your return, you can upload your documents to us. Plus, Canada Revenue agency, in concert with providers like us, allows for the auto fill of many tax slips. Through our desktop software, and mobile app, you can also complete your taxes on your own, from the comfort of your own home, with our tax experts guiding you along the way.
“I always wait until the last minute to file my return. What’s the rush?”
Of course it’s up to you to make your own decision on the timing of your return. However, if you’re due a refund, why would you let the government have your money any longer than you have to? On the other hand, if you’re on “Team Tax Owing”, when you file makes no difference to the amount you owe, or the date on which that payment is due. (We admit, however, that some people do get a certain amount of pleasure from filing at the last minute. We’re not here to judge)
CloudTax is an independent, Canadian based tax preparation company. With CloudTax, many of the simplest returns are free.
For more information, or to talk with Nim Balachandran, Founder and CEO please contact firstname.lastname@example.org
Canada RevenueCloudTaxMy AccountTax filing