It’s time to finalize your 2017 taxes and start planning for 2018. As with every new year, 2018 has its own set of payment and filing deadlines that every taxpayer needs to know about.
Below is a listing of significant dates and information that you will want to make note of.
RRSP Contributions
RRSPs can be a great tool for reducing your tax owing.
Unlike other tax planning tools, you can utilize your RRSP until March of the following year. As such, the RRSP contribution deadline for your 2017 tax return is March 1, 2018, unless you turned 71 in 2017. In that case, you RRSP contribution deadline was December 31, 2017.
The 2017 RRSP contribution limit is 18% of income reported on your 2016 tax return, up to $26,010, less any company sponsored pension plan contributions.
Similarly, the 2018 RRSP contribution limit is 18% of income reported on your 2017 tax return, up to a maximum of $26,230. To claim this full amount, you will have had to have earned $145,725 in 2017.
TFSA Contributions
Your TFSA contribution for 2018 is $5,500 plus any re-contribution amounts from previous tax years.
Your re-contribution room is equivalent to the sum of the amounts withdrawn from your TFSA in previous years.
If you are unsure of how much you can contribute in 2018, contact the Canada Revenue Agency (CRA) at 1-800-959-8281 or log into your My Account.
And remember, if you make a withdrawal from your TFSA in 2018, the same amount cannot be recontributed until 2019, unless you have remaining contribution space.
Tax Installments
If you are like the many Canadians who pay quarterly installments, 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 installment.
As such, the 2018 Tax Installment deadlines are:
- Thursday, March 15, 2018
- Friday, June 15, 2018
- Monday, September 17, 2017
- Monday, December 17, 2018
If your installment is greater than $1,000 you may be subject to an installment penalty if these amounts are paid late. For information on the Installment Penalty, visit the CRA Website.
Individual Tax Filing
For most individual taxpayers, the filing deadline for their 2017 tax return is Monday, April 30, 2018.
If, however, you are self-employed, or your spouse is self-employed, the filing deadline is not until Friday, June 15, 2018.
If you file your return late, you will be subject to a 5% penalty on any unpaid, plus 1% of unpaid taxes for each full month that the return is late, up to 12 months (12%).
Individual Tax Payment
The tax payment deadline for all individual taxpayers, including those who are self-employed and their spouses, is Monday, April 30, 2018. If you are late making a payment, you will be charged interest, compounded daily, starting May 1, 2018.
Corporate Tax Returns
Corporations are required to file their tax returns no later than 6 months after their fiscal year end.
If the last day of your 6th month period falls on a Saturday, Sunday or public holiday, you have until the following business day to file your return.
If you file your return late, you will be subject to a 10% penalty on any unpaid taxes, plus 2% of unpaid taxes for each full month that the return is late, up to 20 months (40%).
Additional late fees could apply for large corporations required to file a T2 or Schedule 38. See the CRA Website for information on these late filing penalties.
For more information on upcoming deadlines and the filing of your tax return, contact us today!
