2020 has been an anomaly in terms of filing due dates and paying your tax bill.
But as this month comes to an end, many deadlines are fast approaching.
Here is a quick summary …
Income Tax
If you owe money on your 2019 income tax return, it must be paid by September 30. Otherwise you will have to pay interest and penalties on the amount owing.
While the filing due date for 2019 returns was June 15, the Canada Revenue Agency (CRA) is not imposing late-filing penalties so long as you file on or before September 30. If you do not file by September 30, you will have to pay late filing penalties on the amount owing until the return is filed.
If you are expecting a refund, you will not be charged any late filing penalties or interest, however, it could affect your receipt of benefits and tax credits that are calculated using previous years income.
For those who passed away after October 1029 and before June 2020, the payment due date is the later of September 30 or six months after the date of death.
Installments
If you pay quarterly installments, your June 15 and September 15 installments are dues on September 30. If they are not paid by September 30, there will be interest charges.
Existing Tax Owing
In response to COVID-19, the CRA suspended interest charges on existing tax debt. This starts on April 1, 2020. This grace period is ending on September 30.
To avoid additional interest on existing tax debt, you must pay it by September 30.
For more information on due dates, penalties and charges, or for assistance filing your tax return, contact us today.