Tax season can be a hassle for anybody, but it may be especially taxing for first-time filers. There’s so much to keep track of. What paperwork is needed, where to find it, and how to fill it out. The good news is that we’ve got the answers to all your questions.
This beginner’s tax guide will help you understand the process so that you are ready to file by the deadline.
When to Submit Tax Returns
The deadline for filing your taxes is usually the end of April, but you can begin filing as early as mid-February. The tax filing date for self-employed individuals is normally around mid-June. Dates are subject to change every year so make sure you check the Canada Revenue Agency (CRA) website for the exact dates.
How the Tax Filing Process Works
Filing your taxes is basically a test of your organizational skills. The process begins by assembling all the necessary tax documents, submitting them to a tax preparer (either a professional, software, or paper forms), and then sending your income tax return to the CRA.
You can either submit your documents online or by mail. The CRA will send you a notice of assessment (NOA) after reviewing your return. The NOA will mention when you can expect a refund, whether you owe money to the government, and the current year’s contribution limits for tax-advantaged accounts, such RRSPs and TFSAs.
Where to Submit Tax Returns
There are three basic ways in which Canadians file their income tax returns. The first is to use a tax preparation service like ours. In this case, you will hand over your paperwork and we will handle the rest. We can also file your tax return on your behalf once we have completed preparing your tax returns.
Some Canadians would rather have digital assistance. The CRA website has a list of online software that are quick, simple, and low-cost – but don’t put your money aside just yet. You’ll still have to pay somewhere between $20 and $50 for a basic income tax return.
The third and most affordable alternative is to go it alone. You can look for free income tax software or do things the old-fashioned way by hand-filling out paper forms. If writing on paper is your only option, don’t be afraid to seek for help when you run into problems.
Required Information and Documentation
Make sure you have the following documents:
- T4: Employment earnings from your employer
- T5: Investment earnings from your bank (this also applies to savings accounts)
- T2202A: Student expenses for tuition, education, and textbooks from your university or college
Don’t wait until the last minute to request these documents. You’ll also need records RRSP contributions (also from your bank), along with receipts for medical expenses, charitable donations, and relocation expenses.
Need Help Filing Your Tax Returns?
Looking for Accounting solutions Toronto ? The team at Accounting Plus is here for you! For more than two decades, we have offered personal tax services to Canadian residents. You can count on our team’s extensive knowledge of the Canadian tax structure to help you save money when filing your taxes. We also provide corporate tax services to assist businesses in paying their taxes on time.
To learn more about our tax planning services in Markham, contact us today.
