2020 is here, which means it is time to finalize your 2019 taxes and start planning for 2020. As with every new year, 2020 has its own set of payment and filing deadlines that every Canadian taxpayer needs to know about.
Below is a listing of significant dates and any important information that you will want to make note of.
Tax instalments
If you are like the many Canadians who pay quarterly instalments, you may be wondering when they are due.
The general rule is that instalments are due on the 15th of March, June, September and December. If, however, the 15th falls on a weekend (Saturday or Sunday) you have until the following Monday to pay your instalment.
As such, the 2020 tax instalment deadlines are:
- Monday, March 16, 2020
- Monday, June 15, 2020
- Tuesday, September 15, 2020
- Tuesday, December 15, 2020
If your instalment is greater than $1,000 you may be subject to an instalment penalty if these amounts are paid late. For information on the instalment penalty, visit the CRA Website.
Individual tax filing (not self-employed)
For most individual taxpayers, the filing deadline for their 2019 tax return is Thursday, April 30, 2020.
If you file your return late, you will be subject to a 5% penalty on unpaid taxes, plus 1% of unpaid taxes for each full month that the return is late, up to 12 months (12%). This could be higher if a return was filed late in any of the past three years.
Self-employed individual tax filing
If you are self-employed, or your spouse is self-employed, the filing deadline is not until Monday, June 15, 2020.
Like non-self-employed individuals, you will be subject to a penalty of 5% on any unpaid taxes, plus 1% of unpaid taxes for each full month that the return is late, up to 12 months (12%). This could be higher if a return was filed late in any of the past three years.
Individual tax payment
The tax payment deadline for all individual taxpayers, including those who are self-employed and their spouses, is Thursday, April 30, 2020. If you are late making a payment, you will be charged interest, compounded daily, starting May 1, 2020.
Final tax return for deceased
If the deceased passed away between January 1 and October 31, 2019, their final tax return is due on Thursday, April 30, 2020. If they passed away between November 1 and December 31, 2018, their final return is due six months after the date of their passing.
Example: Deceased passed away November 17, 2019, the return is due May 17, 2020
Depending on the circumstances, if you file a deceased person’s return late, the return may be subject to a 5% penalty on unpaid taxes, plus 1% of unpaid taxes for each full month that the return is late, up to 12 months (12%). This could be higher if a return was filed late in any of the past three years.
Corporate tax returns
Corporations are required to file their tax returns no later than six months after their fiscal year ends. If the last day of your six-month period falls on a Saturday, Sunday or public holiday, you have until the following business day to file your return.
Examples:
- Year-end is December 31, 2019 - your tax return must be filed by June 30, 2020.
- Year-end is March 31, 2020 - your tax return must be filed by September 30, 2020.
- Year-end is February 12, 2020 - your tax return must be filed by August 12, 2020.
If you file your return late, you will be subject to a 5% penalty on unpaid taxes, plus 1% of unpaid taxes for each full month that the return is late, up to 12 months (12%). This could be higher if a return was filed late in any of the past three years.
Additional late fees could apply for large corporations required to file a T2 or Schedule 38.
For more information on upcoming deadlines and the filing of your tax return, contact Koroll & Company today!
