Last Updated on July 12, 2020 by Yetty Akindele
The Covid-19 pandemic came and put everyone in the world on their toes. Nations scrambled to curtail the situation as a means to its eradication. The effect on businesses as well as the economy was and still is a global one. As a matter of fact, most aspects of living were affected.
Schools were closed, workers were laid off, and movement was restricted albeit fully in most parts of the world. Canada was not left out. The Canadian government by way of Canada Revenue Agency introduced several aids for those struggling with the negative financial consequences of the pandemic.
The annual tax filing wasn’t left out. The government and the Canada Revenue Agency extended the tax filing deadline earlier this year. The deadline was extended from April 30th to June 1st, 2020 for personal income tax, and June 15th for those who are self-employed.
What to know if you missed the June 1st deadline?
The Canada Revenue Agency has introduced a further extension for filing for the 2019 tax year. Now you can file late, penalty, and interest-free for the next 3 months! This is huge and in my opinion more than sufficient to get your tax return filed.
I have also listed some key things to know if you missed the June 1st, tax filing deadline.
- Late-filing penalty fees and interest are being waived for filing personal income in as much as the tax return is filed and payments made before September 1st, 2020.
- If you file after the extended deadline of September 1st, 2020, you will bear the brunt of the penalty and fees
- It is important to have your 2019 tax return assessed so as to accurately calculate benefits/entitlements for July to September 2020.
- If your 2019 tax isn’t assessed, benefits/entitlements will be calculated based on your 2018 filed tax return.
- However, if you receive an estimated calculation of your benefits based on your 2018 tax return, you are still required to file your 2019 tax return
- If your 2019 return is not assessed by early September, your estimated benefits will be halted. In addition, you will have to pay back the estimated amounts issued to you since July.
The Canadian government as well as the Canada Revenue Agency have given a generous leeway with regards to the deadline extension for the filing of taxes. It is therefore more beneficial to you to maximize this penalty-free extension.
The CRA has also stated that they are experiencing significant delays in the processing of paper returns and adjustment requests. This is understandable as the COVID-19 situation has affected delivery services with most courier operators.
Consequently, it is advisable to file online instead. Filing taxes online can be done in two ways. Firstly, you can opt to have it efiled by a professional tax preparer who files your tax for you for a fee. The other option will be for you to netfile, which is a DIY approach.
Did you just think, how on earth do I file my tax return myself?
Do not fret! Turbotax, a tax preparation software is a solution. It is Canadas #1 software for tax preparation and filing. This is a tax preparation software available in free and paid forms. The free software is suitable for filing simple tax returns such as students who do not have employment or self-employed income. It is also suitable for filing uncomplicated tax returns for those with an income under $25,000.
The software is available as CD for installation on your computer as well as an online portal which requires no installation. The CD programs for 2019 tax preparation are compatible with Windows version 8 & 10. Mac and tablet/phone users can use the online platform to fulfill their tax preparation needs. This only requires you to create an account with a user ID and password for login.
With this software, you have access to phone support. Live assist and review give you the option to speak with a tax expert. Professionally prepared and filed tax return options are available as well.
In summary, if you missed the deadline of June 1st to file your taxes, ensure to make use of this grace period and get it done before September 1st, 2020. The earlier you do the better for you, so you don’t lose out on your ability to claim some benefits. Software such as Turbotax makes DIY tax preparation and electronic filing via netfile easy.