Introduction
In Canada, personal taxes are managed by the Canada Revenue Agency (CRA). Understanding when taxes are due to the CRA is important for individuals in order to avoid penalties and interest charges. In this outline, we will discuss the key dates and deadlines for filing and paying personal taxes with the CRA.
Primary Deadline for Filing Personal Income Tax Returns
The question that when are taxes due often keeps people occupied. It is important to understand that the primary deadline for filing personal income tax returns with the CRA is April 30th of each year. This means that all individuals must submit their tax returns to the CRA by this date. If you are self-employed or running a small business, you have an additional two weeks to file your return, until June 15th, but any taxes owed must still be paid by April 30th. It’s important to note that if you owe taxes and do not file your return by April 30th, you will be subject to penalties and interest charges. The late-filing penalty is 5% of the balance owing, plus 1% of the balance due for each month that your tax return is late, up to a maximum of 12 months.
For those who are unable to file their tax returns by the April 30th deadline, the CRA does offer an automatic extension to file. However, this extension is only for filing the return and does not extend the time to pay any taxes owing. If you expect to owe taxes, it’s important to make a payment by April 30th to avoid interest charges. Additionally, if you are unable to file your return by April 30th, you can also apply for a further extension of time to file your return by using form T1-EXT, Application for Extension of Time to File a Income Tax and Benefit Return.
Quarterly Instalment Payments for High Income Earners or Self-Employed Individuals
In addition to the April 30th deadline for filing personal income tax returns, there are also quarterly instalment payments that may be required for individuals with a significant amount of income or those who are self-employed. These instalment payments are due on the 15th of June, September, and December, and should be based on your estimated income for the current year.
Consequences of Missing Tax Deadlines and Available Options
If you are unable to file your personal income tax return or make your instalment payment by the appropriate deadline, you may be subject to penalties and interest charges from the CRA. However, if you have a valid reason for not being able to file or pay on time, you can request a tax extension or make arrangements to pay your taxes in instalments. It is important to contact the CRA as soon as possible to discuss your options.
Conclusion
In conclusion, understanding the deadlines and key dates for filing and paying personal taxes with the CRA is important for all individuals in Canada. The primary deadline for filing personal income tax returns is April 30th of each year, with quarterly instalment payments also potentially required for some individuals. If you are unable to meet these deadlines, it is important to contact the CRA as soon as possible to discuss your options and avoid penalties and interest charges.