Are you beginning to feel like it’s crunch time? We all know that it is tax season, and everyone should have received their T4’s. We now need to put the number on the clock if we haven’t already filed our taxes. April 30th is generally the due date for employed persons to have their taxes filed as well as the balance owing for the previous year is due upon this day. This can take quite the toll on any individual especially if you owe to the government. The good news is, there are a few options that are readily available to help reduce the stress you are feeling. The last thing you want to have to worry about is the CRA getting involved in your amount owing.
With our economy having taken the downfall that it has and many people out of work and or struggling financially, it can be hard to think about how we are going to pay our taxes if we haven’t paid enough throughout the year. There is some helpful news though that may aid in reducing the stress you may be feeling. The CRA can be very accommodating when you are honest with your situations and contact them right away. It is not their goal to garnish wages and withholding money when you follow the guidelines set out. There is a due date set to when the previous year tax money is due, but they are very willing to work within your means if you contact them to set up payments. They offer payment plans to accommodate most situations where you can either pay in lump sums quarterly or at a lower amount monthly.
Another interesting fact that some may not know is yes for many the deadline for taxes to be completed is April 30th but for those who are self employed you do not need to have your taxes filed till June 15th. That can offer some stress relief to those who are still getting everything together. This also includes those who are married/common-law with someone who is self employed. It is important to note though that there is interest charged on your amount owing starting on April 30th with the rate fluctuating every three months.
Tax season does not have to be as stressful as it sounds. With a bit of planning and some continued work throughout the months of a year, it can be a smooth ride. Here is some additional ways to help reduce the amount of stress you may feel at tax time.