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A Canadian tax reminder from Mogo - including common Tax-FAQs

OK – So we all know this isn’t the most exciting thing to post about — but it’s useful. The deadline for filing your tax return for the 2011 year is on April 30, 2012. You’ve got 2 months to find your forms, check some boxes and file away. Don’t get stuck scratching your head and waiting in line on April 29th.

Here’s hoping we all get returns!

Common Questions:

What happens if I’m late to file?

You could be subject to penalties and interest on any money owed. It’s not good for your credit

What happens if I’m early to file?

The CRA will unconditionally love you, until next year.

Wait a second. Don’t I already pay taxes on every paycheck?

Well, yes, you do – but this is the time of year that accountants, tax companies and the Canadian Revenue Agency carry the ones, check the forms and make sure everyone paid the right amount. If you paid more than necessary, you’ll get a check; and if you earned extra (but haven’t paid tax on it yet) you will be chipping in.

How should I file my Canadian tax return?

Most folks go the HR Block or TurboTax route. It’s a quick way of getting your T4s, T4As and anything else into the hands of a professional. They do a huge volume of work, so the costs can be relatively low. If you’re a numbers whiz, or have simply practiced, you can do them yourself (I haven’t done this, for fear of screwing up… but I’ve got friends that have been doing their own taxes since they were 18).

If you’re a business owner, there are also accounting and money management firms that can take care of taxes for you. I think it’s great to put this into the hands of a professional to save on headaches (and audits) later on.

Will I get a tax return?

That depends on what you’ve paid in taxes, and how much money you brought in. If you’ve got tuition credits, or have been keeping track of your write-offs (posts on common Canadian write-offs coming soon!), you will have some more room and a better chance of a refund.

Tighten up your tax game and get ready before that 2 month deadline ticks away! Happy number crunching.

image via 401K

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