March 20, 2020

COVID -19 UPDATE: Why Should you Still File Personal Tax Returns on Time?

Due to ongoing impacts of COVID-19, The Canada Revenue Agency (CRA) has announced delay of payment of personal and corporate income amounts owing, and a small extension in the personal […]

Due to ongoing impacts of COVID-19, The Canada Revenue Agency (CRA) has announced delay of payment of personal and corporate income amounts owing, and a small extension in the personal tax filing deadline. These measures do help the big picture, but here are fives reasons why you might want to stick to the originally scheduled deadline of April 30:

1. If you have a refund: If you have signed up with direct deposit with CRA, and you have a refund, money can generally be deposited into your bank account as quickly as 2 weeks.

2. CRA has announced enhancements to the Child Care Tax Benefit: Providing your income tax return to CRA may help them assess if you are now entitled to these amounts.

3. The GST/HST credit has been enhanced: If you or an adult child qualify for this, your personal tax return can be used to determine amounts to be paid to you.

4. Planning for payment of a deferred tax amount: You might not have to pay taxes owing or instalments until later this year, but knowing your final tax liability and instalment requirements helps you manage your current personal cash flow for eventual payment of CRA liabilities. Knowledge is power.

5. Keeping our economy running: To maintain quality, timely service for our clients we hire many people just for tax season, and we want to keep these people working. Even with the disruption, capacity is increased over the next month to efficiently prepare your tax return by the end of April, just as in prior years. You can check it off your to do list instead of leaving it close to the deadline.

Feel free to reach out to your Catalyst advisor at any time throughout any of this to discuss which options are best for you. Or email inquire@thecatalystgroup.ca to direct your email. We’re in this together.