New to filing taxes? Let us help you out!From calculating your income tax to understanding what falls under the tax benefits umbrella, there’s so much that we don’t know about taxes.
To top that off, the government has also revised the benefits and made other changes to the taxation policy to help Canadians get through the global pandemic, so it’s understandable if you’re a bit overwhelmed.
Here is a well-detailed list of the top 7 things you should know about taxes:
All You Need to Know
1.Not everyone who earns money in a fiscal year is required to file a federal income tax form. The amount you received, your source of income, and your filing age and status all play a role in whether or not you have to file your taxes.
2.You may claim tax benefits and credits even if you don’t have to submit a federal income tax.
Tax credits are special form reductions in your tax liability, and they’re generally preferable to tax deductions, which just lowers your taxable income.
3.If you find it difficult to pay your tax, you still have the opportunity to submit a return. If you fail to file a tax return and settle your bill, it might result in penalties. Make sure you file your tax returns on time to avoid paying penalties.
4.Deadlines are important. If you fail to pay your taxes on time, you’ll be hit with interest and penalties, which may rapidly pile up with time.
Your workplace and bank each have their unique deadlines for delivering information to you. There is no restriction if you do not file your return; you can extend the time until the deadline if need be.
5. A request for a filing extension isn’t like a request for a payment extension. You can apply for an automatic extension if you’re unable to file your returns by the deadline. Don’t forget that a filing extension is not similar to a payment extension. Although filing an extension is free, if you plan to owe at tax time, you need to include a payment with your petition to prevent penalties and interest.
6. If you don’t pay and file, the government can take action against you, including withholding your passport.
7. Hiring a skilled tax accountant doesn’t have to be expensive.
Connect with Expert Tax Planning Services
If you need a tax accountant, you can simply contact Accounting Plus. Our expert corporate and personal tax accountant Canada, Toronto, Ontario, will guide you throughout your tax return filing process.
