Why is it important to file my taxes on time?
It is amazing how quickly tax season seems to sneak up on many people. Especially when it is never a good idea to rush your taxes, as rushing often leads to people settling for less. They often overlook certain expenses or credits available to them. Staying on top of your taxes throughout the year would not only help you avoid any late penalties and interest charges, but it will also help you in maximizing your credits and expenses.
A common mistake people make when they can’t pay the full balance owing before April 30th, is they choose not to file it and end up paying an even larger penalty, (5%) on top of interest of 1% per month. Avoid the late-filing penalty by filing your taxes on time.
For Canadians that fall within a lower income bracket they risk missing out on several government benefits like GST/HST Credits, Child Tax Benefits, Guaranteed Income Supplement and/or provincial credits like OTB (Ontario Trillium Benefit) and working income tax benefits.
Procrastination my cause you to be “dis-entitled” to many very valuable tax credits such as Pension-Splitting, and you may not even be able to claim any overpayments in CPP or EI.
If you have several years of taxes to file, the time is now to get on top of the situation. Filing multiple years at once may trigger an audit. Having a qualified Tax Preparer (Qualified bookkeeping/accounting firm) may be helpful in this situation. Remember to ask the tax preparer if they will help you with an audit if one occurs.