If you’re one of the many Canadians aiming for a smooth tax season and hoping to optimize your tax return, it’s crucial to be aware of the Canada tax deadline, because knowing when taxes are due can make all the difference.
So, when are taxes due in Canada for this tax season? For individuals, the 2024 tax deadline in Canada is April 30, 2024, while for the self-employed, it’s extended to June 17, 2024. However, it’s important to note that filing deadlines can vary based on your specific situation.
In this blog post, we’ll outline the tax deadlines in Canada for various situations t to help you understand when to file your taxes in 2024. Whether you’re doing your taxes yourself or getting professional help, we’ll give you all the information you need to file your taxes.
Key Takeaways
- The 2024 tax filing deadline for individuals is April 30, 2024, and for the self-employed, it’s extended to June 17, 2024.
- The Canada Revenue Agency (CRA) opens NETFILE on February 19, 2024.
- Not filing your tax return by the deadline could lead to penalties.
When are Taxes Due in Canada for 2024?
For the 2024 tax year, the tax filing deadline is April 30th, 2024.
The CRA will open its NETFILE service on February 19th, allowing you to submit your taxes electronically.
It’s advisable to file your return early or before the due date to avoid being charged interest and penalties and to prevent a disruption to your benefit and credit payments.
Unless there are special circumstances that require instalment payments, such as a second job or rental income, the due date and any balance owing must be paid by April 30th as well.
When is Tax Season for 2024?
Tax filing season for 2024 kicks off on February 19, 2024. This marks the first day that Canadians can start filing their income tax returns online. The CRA will open its NETFILE service on February 19, 2024, to electronically receive submitted returns.
Additionally, those opting for paper filing should have already received their income tax package in the mail, as per the CRA’s guidelines.
For most Canadians, the deadline to file their tax return is April 30. This date also serves as the deadline for making payments to the CRA for those who owe money.
When is the Last Day to File Taxes in Canada for 2024?
The deadline for filing taxes in Canada varies depending on the type of tax return you’re submitting. Generally, any amount owing becomes due and payable on the deadline date.
To prevent incurring interest charges, it’s crucial to understand which category your return falls into and to file on time.
Individual Tax Deadline
The deadline for filing your tax return is April 30, 2024.
The Canada Revenue Agency typically expects individual taxpayers to submit their income tax returns by April 30 of each year. If April 30 falls on a weekend, the CRA extends the deadline to the following business day.
Unless you have made other arrangements with the CRA, this is the day any amount owing becomes due. After this time, it will begin to accrue interest.
The CRA will open its NETFILE service on February 19, 2024, to electronically receive submitted returns from those who wish to file taxes online early, while mailed responses must be received or postmarked by the due date.
Self-Employed Tax Deadline
If you’re self-employed, the CRA grants you a bit more time to submit your income tax return, you have until June 15, 2024.
However, since this date falls on a Saturday this year, it’s extended to the next business day, which is Monday, June 17, 2024. This deadline also applies to the spouses of self-employed individuals.
But keep in mind, if you owe taxes, you’re still required to submit payment by April 30, 2024.
Business Tax Deadline
For most business owners, such as sole proprietors or partnerships, the CRA requires returns to be submitted by June 17, 2024, if their business fiscal year aligns with the calendar year.
However, incorporated businesses may choose to operate on a non-calendar fiscal year. In such cases, returns are due six months after the end of their fiscal year.
Deceased Persons Tax Deadline (Final Tax Returns)
Individuals who are handling the estate of a deceased person, such as the Executor of a will, must complete the final tax return for the deceased.
If the individual passed away before October 31, 2023, the deadline for the final return is April 30, 2024. However, if the person died between November 1 and December 31, the return is due six months after the date of their death.
Furthermore, if the deceased person or their spouse/common-law partner was self-employed, the CRA extends the due date to June 17. Nonetheless, interest begins accruing as of April 30.
Deceased Persons With Business Tax Deadline
If the death occurred between January 1 and December 15, 2023, while the business was in operation, the tax return is due by June 15, 2024.
If the death happened between December 16 and December 31, 2023, the return must be filed within six months after the date of death. Regardless of the date of death, taxes owed will be due on April 30, 2024.
Tax Installment Payments Deadline
If you choose to pay your tax bill in instalments throughout the year, these payments must be submitted quarterly. The due dates are March 15, June 15, September 15, and December 15.
If you fail to meet these deadlines, you will be required to pay a higher amount. This requirement applies to both employed and self-employed individuals.
How to File Taxes in Canada
Before you commence your tax filing process, you need to gather all the necessary documents and information. Here’s a checklist of items to collect:
- Personal Information: Make sure you have your Social Insurance Number (SIN) handy, as well as the SINs of your dependents if applicable.
- T4 Slips: If you’re employed, your T4 slip is vital as it outlines your employment income and deductions.
- Tax Forms: If you’re self-employed or have income from other sources, you’ll need the appropriate tax forms, such as the T2125 for business income.
- RRSP/TFSA Contribution Information: Collect information on your RRSP and TFSA contributions, including any unused contribution room.
- Investment Statements: If you have investments, gather statements showing capital gains, losses, and investment income.
- Receipts for Deductions: Collect receipts for deductions such as charitable donations, medical expenses, and tuition fees.
To file your taxes, you have several options to choose from:
1. Paper Returns
If you prefer the traditional method, you can file your taxes by mail. However, this process typically takes longer to process, and there’s a higher likelihood of errors.
You can fill out a T1: Income Tax Return and mail it to the CRA. If you filed a paper tax return last year, the CRA will send you the income tax package through mail.
However, CRA prefers electronic filing methods. If you file by mail, the processing takes longer and your tax refund might take 10-12 weeks.
2. Online Filing
Using either EFILE or NETFILE, you can easily file your taxes online. EFILE is used by tax professionals working on your behalf, while NETFILE is the program approved by Revenue Canada that lets you file your taxes.
NETFILE is often integrated with most free tax software programs available in Canada. Tax software programs offer a convenient and efficient way to file your taxes, often providing step-by-step guidance.
Using tax software is beneficial because information can be auto-filled and you can keep it saved in your account or save a PDF copy for future reference. The CRA will send your tax refund within 2 weeks if you use NETFILE to file your tax return.
3. Tax Professional
If you’re unsure about the tax filing process, have complex tax situations, or want the peace of mind of knowing your taxes are filed correctly, hiring a tax professional can be a wise choice.
They have the expertise to navigate tax laws and regulations, ensuring your return is accurate and maximizes your deductions.
Can I Extend My Tax Deadline?
Sometimes, life can become hectic, and you may find it difficult to meet the April 30th tax deadline. In such cases, you can request an extension of the tax deadline, typically granting an additional six months to file your taxes.
However, it’s essential to understand that this extension only applies to filing your return, not to paying any taxes owed.
While an extension can provide much-needed breathing room, it’s crucial to remember that failing to file your taxes on time can lead to penalties and interest charges.
The penalties for late filing can be substantial, which is why it is important to either file on time or request an extension before the April 30th deadline.
What Happens If You File Personal Taxes Late?
If you miss your tax deadline, the Canada Revenue Agency (CRA) will impose penalties. You’ll be charged 5% of any amount owing initially, with an additional 1% added for each subsequent month.
For individuals filing late for previous years, the penalty increases to 10% upfront, with an additional 2% added each month. The maximum penalty period is 20 months.
For instance, if you owe $2,000 on your income tax bill and file two months late, you’ll incur a late penalty of $100 (5% of the total). If you pay the full amount within the month, your total owed will be $2,100.
However, if you fail to pay, an additional 1% penalty will be added monthly. So, if you’re three months late, you’ll have to pay $2,160 (1% of $2,000 is $20, and for three months, it totals $60).
Final Thoughts on Canada Tax Deadline
Staying informed about when taxes are due in Canada, along with any changes to the tax system, can greatly alleviate the stress of filing your personal taxes.
By knowing the important dates and exploring your filing options, you empower yourself to navigate the process smoothly and potentially maximize savings through deductions and credits.
Whether you opt for self-filing or seek professional assistance, being proactive and knowledgeable can positively impact your financial health. Don’t let tax season overwhelm you, take charge and approach it with confidence, knowing you have the tools to manage it effectively.
