What happens if I miss the personal tax filing deadline in Canada?

If you miss the April 30 personal tax filing deadline in Canada, the CRA charges a late-filing penalty of 5% of your balance owing, plus 1% for each full month your return is late, up to a maximum of 12 months. Interest also begins accruing on any unpaid balance. Filing on time, even if you cannot pay, reduces penalties.

What records do I need to keep for my personal taxes?

You should keep all receipts, invoices, and documents that support your income and deductions for at least six years from the end of the tax year they relate to. This includes T4 slips, RRSP contribution receipts, charitable donation receipts, medical expense receipts, and any business-related expense records.

What happens if I am audited by the CRA?

A CRA audit is a review of your tax return to verify that your income, deductions, and credits are accurate. If selected for an audit, the CRA will contact you by mail and request supporting documents. A.M.I. CPA Professional Corporation can represent you through the audit process and ensure your records are in order.

What personal tax deductions and credits are available in Ontario?

Common personal tax deductions and credits in Ontario include RRSP contributions, childcare expenses, medical expenses, charitable donations, home office expenses for employees, and the Ontario Trillium Benefit. A CPA can review your situation to ensure you are claiming everything you are entitled to.

Should I hire an accountant for my personal taxes?

While simple returns can be filed independently, hiring a CPA ensures you maximize deductions, avoid errors that trigger CRA reviews, and stay compliant with current tax law. A.M.I. CPA Professional Corporation provides personalized personal tax services for individuals in Oakville, Burlington, and the GTA.

Personal Tax FAQs

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How Long Should I Keep My Records?

You should keep your supporting documents for six years.

What Are The Penalties & Interest If I Do Not File on Time?

If you owe tax, the penalty is 5% of the outstanding balance plus 1% a month until the tax return is filed, to a maximum of 12 months. This works out to a maximum of 17%. If you have been late in filing your return in any of the last three previous years, the penalty can be more.

What Information Do I Need for Someone Else to Prepare My Tax Return?

You will need all your T-slips. For example, you will need your T4, T3, T5, T5008, and RRSP deduction slips etc. Additional slips you should have are tuition, child-care receipts, charitable donations, etc. If you use your home or vehicle for work and have a T2200, you compile your fuel receipts, insurance costs, maintenance costs, monthly lease costs, and purchase invoice if you purchased a new vehicle in the year.

Remember to bring the last tax return that you have completed and your notice of assessment if you can find it.

How Can I Reduce My Chance of an Audit?

The best defence against an audit is filing your tax return on time annually. Why give the CRA a reason to examine your tax situation? Get it done!

If you file a GST/HST return, ensure the revenue on your business statement T2125 matches the revenue on the GST/HST return.

A.M.I. CPA Professional Corporation can discuss with you more details on your personal taxes.

Personal Tax FAQs

How Long Should I Keep My Records?

What Are The Penalties & Interest If I Do Not File on Time?

What Information Do I Need for Someone Else to Prepare My Tax Return?

How Can I Reduce My Chance of an Audit?

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