2022 Tax Returns

This year, April 30 falls on a Saturday, so we would expect the filing deadline for personal returns (T1's) will be held over until the next working day, which will be Monday May 2. 

It is important that you get in the practice of getting your documents together to be filed on time, since CRA is extremely knowledgeable in calculating a "late filing penalty" if you owe money, and do not have your tax return filed by the due date. 

It's not a person trying to take revenge, but a computer program that is designed to get everyone on the same page, so CRA's machinery can keep on chugging out refunds to the early birds, and penalize and collect from the late filers. 

From my experience, late filers generally feel they are too cash strapped to let the government know they are cash strapped, and think by hiding, it's a better way to report a tax debt.  Actually, it's much better to report you have a tax debt, eliminate the late filing penalty (5% of unpaid tax), and budget a payment, paying about 6% per year interest.  That's about $60 extra if your $1,000 tax bill didn't get settled for a year, as opposed to an extra $50 off the top, for filing late.  

Who knows?  Your ship may  come in, and you will settle up before next year is up, and save some interest. 

Medical expenses can be used in some cases to reduce the tax balance.  When you have a fair number of prescriptions that are neither covered by your health plan, or under Ontario's health care system, you can ask your pharmacy to print off an annual statement of your account.  It is so much easier to see what you paid, rather than adding little bits of paper with your $2. charge on.  Your total medical claim, in order to be a benefit, must exceed 3% of your "net earnings".  We can do the math for you, and really appreciate the pharmacy's statement.  It's a time saver to us.

Have a good tax year, and bring your documents early, once again. 

What you need to know for the 2022 Tax Season 

Your Hollingsworth and Associates Team .

519-649-2001