When the temperature starts to drop and when the holidays are around the corner, this is an indication that Tax Time is fast-approaching. Before you know it, the time has come to contact your accountant and drop off your personal tax papers. Click here to view our up to date 2018 Tax Checklist. After all, you wouldn’t want to be late on your tax filing, right?
When you should start thinking about filing your tax return
For the most part, income taxes for individuals need to be filed by April 30th, 2019. This deadline applies to both sending in your tax return and paying your amount owing (if you owe). If you file late with a balance owing, you will be charged interest and a late-filing penalty. However, individuals entitled to refunds or who do not have a balance owing are not penalized for late filings.
The deadline for self-employed individuals is June 15th, unless you have an amount owing, in which case you need to pay by end of April. Also, it is important to note that spouses of self-employed individuals are also granted until June 15th to file their tax return without penalty. Regardless of whether you are self-employed or not, balances owing are due April 30th to avoid interest. What this means is that if you are self-employed, you can make an installment payment by April 30th to avoid interest, so long as the amount is greater than or equal to your balance owing.
To simplify matters, April 30th is the deadline for:
- Individuals to file their return
- Individuals to pay their balance owing
- Self-employed individuals to pay their balance owing/make an installment
June 15th is the deadline for:
- Self-employed individuals to file their tax return
- Spouses of self-employed individuals to file their return
Late filings lead to penalties, and late payments lead to interest being charged on the balance owing.
With the general deadline to file being April 30th, you should start thinking about your income taxes in the New Year. While filing a return doesn’t usually take too long, keep in mind that your tax preparer likely has hundreds of tax clients other than yourself. Do yourself and your accountant a favour by dropping off your papers well in advance.
Want to file your taxes early and get your return out of the way? Great idea, you can begin filing as early as late February. Filing early is a wise choice for people with a large amount owing in taxes, as this gives them time to prepare the funds or pay in installments. However, your taxes must be paid in full by April 30th if you want to avoid the penalty and interest fees.
What you need for your tax filing – 2018 tax checklist
Unsure of what slips you have? Of what you will be allowed to claim this year? Not to worry! The BM Group has got you covered. Generally, you should always provide a copy of last year’s tax return (if you have been with the same accountant they should have this on file already), installment payments, your T4 (employment income slip), and a list of other items.
We understand how confusing taxes can be, especially when rules change every year. For that reason, we have prepared an up-to-date Personal Tax Checklist detailing every slip, document, and receipt you should provide to your tax preparer (if applicable). Follow our checklist and you will ready to face the 2018 tax year!
How you can file your taxes
The actual filing of your tax return is the easy part. Once you have compiled all the necessary documents and slips, you can simply hand them off to your Tax Accountant to take care of the rest.
Whether you are unhappy with your current tax preparer, or do not have one at all, the BM Group is more than happy to take on new clients. We offer competitive pricing and generous student discounts.
Interested? Contact us today!