Filing Taxes
Filing Taxes Online
We also provide electronic returns and Insta Refunds.
FAQ
- What is my deadline to file my tax return?
- What records should I keep and for how long?
- How long will it take to hear from the CRA after I file?
- Once I get my Notice of Assessment, is that the end?
- What are the red flags that will spark an audit?
- What is a tax credit?
- What is the difference between refundable and non-refundable tax credits?
- What is a tax deduction?
- What is a marginal tax rate?
What is my dealine to file my tax return?
Personal income tax returns must be filed by midnight, April 30. If you or your spouse are self-employed, the deadline is June 15. If you have a balance owing, you must pay that amount on or before April 30.
Books and records should be kept for six years. Without paper as written proof, a claim may be disallowed and you may end up owing more tax plus interest. How long will it take to hear from the CRA after I file?
If you file electronically through a CRA-approved Efile service provider, you may get your Notice of Assessment and your refund, if one is due, in as short a time as one week. If you qualify to Telefile, you may hear from the CRA within two weeks. Those who want to use the CRA's free Netfile (that is, file a return over the Internet) must buy CRA-certified software and use an assigned Web-access code and secure encryption when filing the return. The CRA promises immediate acknowledgment and faster processing time with Netfile. Using the traditional approach and filing a written return may extend the waiting period for a refund to as much as six weeks, depending when you file your return.
To find out the status of your income tax refund, and also your eligibility for the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit or the Canada Child Tax Benefit or your RRSP deduction limit, you can access the CRA automated information service, T.I.P.S., over the telephone at 1-800-267-6999 or online at: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips.html.
Once I get my Notice of Assessment, is that the end?CCRA sends you the Notice of Assessment to let you know the government received your return, that the calculations seem consistent and that a refund is enclosed or more tax is payable. Later in the year, CCRA auditors will review returns and may request documentation, such as receipts for a moving expense, to back up a claim. Without proper proof, your claim may be disallowed and you may owe more tax plus interest from April 30 — compounded daily. What are the red flags that will spark an audit?
An audit is a study of someone's books and records. Technology has made it easy for the CRA to carry out random audits or targeted investigations of businesses, professionals and the self-employed. Investigators can select returns that are above average or below average in a specific financial category or they can combine various financial factors in one search.
One year, the CRA audited all pharmacists with below-average profits and found many cases of non-compliance, some of which were taken to court. The CRA is not out to harass those who are "squeaky clean." In selecting audit criteria and candidates, auditors look for non-compliance, undisclosed income and inconsistencies or unusual patterns. Personal returns are not audited, as individuals do not have financial books. But they may be screened when auditors carry out assessment checks for RRSP contributions, moving expenses or any other claim categories.
What is a tax credit?Tax credits, like medical expenses and charitable donations, reduce the amount of tax payable. Credits also vary from province to province. For instance, Ontario offers property and sales tax credits and Manitoba has personal tax, property and learning tax credits, while British Columbia has a sales tax credit. What is the difference between refundable and non-refundable tax credits?
Refundable tax credits have value even if no tax is payable. Credits reduce tax perhaps to zero. If credits exceed the tax payable, the difference is given as a tax refund. Non-refundable tax credits have no value when no tax is payable. Excess non-refundable credits are not given as tax refunds. What is a tax deduction?
If an expense is treated as a tax deduction, taxable income is reduced by the amount of the expense. Deductions such as registered retirement savings plan contributions favor those in higher tax brackets. Each deduction has its own qualification criteria and these often change from year to year. What is a marginal tax rate?
Your marginal tax rate is the rate that applies to the next dollar of taxable income that you earn in a given tax year. The marginal rate, the top rate of tax you pay, is based on your taxable income not your gross income. Under our progressive rate system, people with higher incomes have higher marginal rates. These rates vary by province of residence because they include federal and provincial basic taxes and surtaxes. Your marginal tax rate does not indicate what tax you'll pay, since portions of your income may be subject to lower marginal rates, tax credits that reduce taxes and surtaxes which increase tax.
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