2 reasons to file your taxes after the deadline

by | Aug 1, 2023 | Finance and Business

Life gets busy and sometimes we miss important deadlines, like filing your taxes. But when it comes to taxes, there’s no better example of the expression that it’s better late than never. Here are two reasons to file your taxes as soon as possible.

You may get a refund
In Canada, you need to file an income tax and benefit return every year to report your income. By doing your taxes, you’ll find out if you are entitled to a refund or if you have a balance owing.

Refunds put money back into your pocket, and you could be entitled to one if you paid more tax during the year than you actually owe, or if you qualify for any refundable tax credits. If you file your taxes online and are registered for direct deposit banking, you could receive your refund in as little as eight business days.

Since the deadline to file a 2022 tax return has passed, you will be charged a late-filing penalty only if you file your 2022 taxes and have a balance owing.

You could receive benefit and credit payments
Filing your taxes is the only way for the Canada Revenue Agency to know if you’re eligible for benefit and credit payments, such as the Canada child benefit or the GST/HST credit.

If you live in one of the provinces that participates in the federal Climate action incentive payment (CAIP) program, filing your taxes is how the government calculates how much money you’re eligible for. This program helps offset the cost of the government’s federal pollution pricing.

Residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and New Brunswick receive the quarterly payments. Eligible residents of New Brunswick will receive their first payment in October 2023 (in the form of a double payment that will cover the July and October 2023 payments), and then a single payment in January 2024.

Find more information about CAIP at canada.ca/cai-payment

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