Tax Filing Deadlines For Final Tax Returns
If you are the legal representative of a deceased person, you are in charge of ensuring their final tax return is submitted to the CRA.
- If the individual passed away between January 1 and October 31 of the tax year, their return is due May 2.
- If they passed away between November 1 and December 31, their return is due six months after the date of their death.
Again, if the deceased person or their spouse or common-law partner is self-employed, the CRA extends the due date to June 15, but it still begins assessing interest as of April 30.
Who Is Required To File An Income Tax Return
If you are new to Canada or if you are just entering the workforce, you may be wondering if filing a Canadian Income Tax return is a necessity, and if so, when do you have to file your first tax return?
The Canada Revenue Agency does require annual filing for most citizens but there are exceptions, so lets have a look at who is required to file a Canadian T1 General tax return and when.
Do Review Covid Relief Tax Breaks
The IRS says it’s seeing a number of common errors from taxpayers claiming incorrect amounts for their Recovery Rebate Credit and Advance Child Tax Credits. If you qualified for the third round of Economic Impact Payments issued last year but didn’t get one or didn’t get the full amount, you may be eligible to claim the Recovery Rebate Credit. The IRS should have sent you a letter indicating the amount. Use that information to fill out your return.
You should also refer to an IRS letter indicating the amount of your Advance Child Tax Credit payment when you prepare your return.
“Some are forgetting to include the advance child care credit that they already received during 2021 and attempting to get the entire tax credit with the filing of their tax returns,” said Genevia Fulbright, a CPA and president of Fulbright & Fulbright in Durham, North Carolina. If you do that, “the IRS will make an adjustment and the refund will be lower or you might actually owe money depending on the tax situation,” she said.
If you believe there is an error in the credit amount in those letters, contact the IRS before filing.
Also, like last year, the IRS will let you claim a deduction of up to $300 for cash contributions made to certain qualifying charitable organizations in 2021, even if you claim the standard deduction. And if you itemize, you can claim a deduction for charitable contributions up to 100% of your adjusted gross income.
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Claim Standard Deduction And Charitable Contributions
Youll be able to claim charitable contributions on your 2021 federal income tax return, even if you take the standard deduction. In the past, you could only claim a deduction for charitable contributions if you itemized your deductions.
Now, even if youre claiming the standard deduction, youre also able to claim up to $300 for a charitable cash contribution, and if youre married filing jointly, its up to $600, Lisa Greene-Lewis, CPA and tax expert for TurboTax, explained.
This big change could cut the tax bill for up to 90% of taxpayers who currently take the standard deduction if they donated to charity in 2021.
Now, even if youre claiming the standard deduction, youre also able to claim up to $300 for a charitable cash contribution, and if you’re married filing jointly, it’s up to $600. Lisa Greene-LewisCPA and Tax Expert, TurboTax
Cash contributions include donations made by cash, check and credit or debit cards, as well as any out-of-pocket expenses you were not reimbursed for while volunteering for a qualifying charity. It does not include the value of your volunteer services, securities or other property.
Understand How Your Taxes Are Determined
The government decides how much tax you owe by dividing your taxable income into chunks also known as tax brackets and each chunk gets taxed at the corresponding tax rate. The beauty of this is that no matter which bracket youre in, you wont pay that tax rate on your entire income.
The progressive tax system in the United States means that people with higher taxable incomes are subject to higher federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
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Make Sure To File Taxes On Time
If you expect that you will not be able to file your taxes by the April 18 deadline, you have another option: You can request a timely extension to file your returns. If you make the request prior to April 18, it’s typically automatically granted, so you will have extra time to get your paperwork done.
If you request an extension and it’s approved, your new tax deadline will be Monday Oct. 17, 2022. But to be clear, this is the deadline to file — you will still have to pay your taxes by the April 18 deadline, even if you are given until October to submit your paperwork. If you don’t pay on time, you could get hit with penalties and interest for not submitting the money you owe the IRS on schedule.
The failure-to-file penalty, however, is much larger than the failure-to-pay penalty, so it’s best to deal with the paperwork and get your returns in quickly even if you know you’ll fall short of being able to pay the full amount of taxes due.
If you can file your returns but are unable to pay the bill, you may have some options, including signing up for a payment plan with the IRS. You could also consider using a 0% APR credit card to pay your taxes. If you can pay off the card’s balance before interest is charged, this can sometimes be a far cheaper option than paying the IRS late or using its payment plan — even though you will have to pay a processing fee to pay your taxes with a credit card.
If Your Child Has Unearned Income Only
A child who has only unearned income must file a return if the total is more than $1,150 for 2022.
Example: Sadie, an 18-year-old dependent child, received $1,900 of taxable interest and dividend income during 2022. She didn’t work during the year. She must file a tax return because she has unearned income only, and her total income is more than the unearned income threshold for 2022.
However, if your child’s interest and dividend income total less than $11,500, you can elect to include that income on your return rather than file a return for the child. In this event, all income over $2,300 is taxed at your tax ratesyou could end up paying more with this method.
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What’s The Deadline For Filing Your Federal Tax Return
- The deadline for filing federal taxes this year for most taxpayers is Monday, April 18.
- Taxpayers in Maine and Massachusetts, however, have until because of the observance of Patriots’ Day in those states.
- The IRS has also announced extended federal tax filing deadlines for victims of winter storms in parts of Tennessee, Illinois and Kentucky, and victims of wildfires in Colorado. An extended May 16 deadline is limited to affected counties, which can be found on the IRS’ page on tax relief in disaster situations.
- In addition, if you’re serving in the military abroad, including in a combat zone or as part of a contingency operation in support of the US Armed Forces, you may be granted additional time to file your return.
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How Do I Know That The Data Is Correct
This year, for the first time, you can view third-party data certificates submitted by third party data providers on your behalf. Simply log in to eFiling and following the steps below:
- Once successfully logged in, click on Third Party Data Certificate Search menu option displayed as part of the left menu option.
- Once you have selected the Third Party Data Certificate Search menu option, the Request Third Party Certificates screen will be displayed.
- On the Request Third Party Certificate form, select the Certificate Type and Tax Year.
- Click on the Certificate Type drop down list and select the appropriate certificate type.
- Click on the Tax Year drop down list and select the appropriate tax year.
- Once you have made the applicable selection, click on the Submit Query button displayed at the bottom of the page.
- The Certificate Type selected will be displayed and you will be able to click on to view your Certificate.
- Note the certificate cannot be used to submit to SARS.
If there is an error or the data is incomplete:
Do Not Risk Having Your Benefits And Credits Interrupted
Doing taxes on time is the best way to ensure your entitlement to benefits and credits, like the Canada child benefit , the Old Age Security pension payments, and the goods and services tax/harmonized sales tax credit, are not interrupted. Even if you owe tax, dont risk having your benefits and credits interrupted by not filing. If you cannot pay your balance owing, the CRA can work with you on a payment arrangement.
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If You’re An Early Bird When It Comes To Filing Your Tax Return You Won’t Have To Wait Much Longer Before The Irs Will Accept Your Return
The sooner you file your tax return, the sooner you’ll receive any refund due. That’s why some people like to file their return as early as possible. This year, the IRS will start accepting 2021 tax returns on January 24, 2022. That’s much earlier than last year, when you had to wait until mid-February to start filing returns.
If you’re really itching to file your return as soon as possible and made $73,000 or less in 2021, you can use the IRS’s Free File program to file your return as early as January 14. Participating providers will accept completed returns starting on that date and hold them until January 24, when they can be filed electronically with the IRS. Other tax preparation software companies and tax professionals may also accept or preparing tax returns before January 24 and hold them until the IRS itself begins accepting returns.
When Should I File Taxes
While you may have already started getting documents for 2021, the IRS started accepting tax returns on Monday, January 24.
It’s recommended to file electronically as soon as possible. The federal tax deadline is April 18, or April 19 for residents of Maine and Massachusetts. If you get a tax extension, you must file by October 15.
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Save The Right Paperwork All Year Long
Stay on top of tax-related paperwork throughout the year it will make your life easier during tax season. You might want to keep receipts for things like charitable donations, work-related expenses and medical bills, or other items from step 4. You may also want to keep statements from student loans or investments and any grants or fellowships. Having these handy and organized can help you determine whether to itemize and make the process easier. You should keep your paperwork after you file, too. The IRS recommends keeping records for at least three years.
Should I File A Return Anyway
Even if youre not required to file, sometimes its in your own best interest to do so anyways, for the following reasons
- You want to claim a refund.
- Entries on your tax return determine if youre eligible for certain federal and provincial benefit programs. Even if you had no income, you still may qualify for the GST/HST Credit, or provincial benefits such as the Ontario Trillium Benefit. You can find a complete list of provincial benefit programshere.
- Your RRSP contribution limit starts growing as soon as you earn any income. Even if youre not expecting a refund, the more RRSP contribution room, the better.
- If you want to claim the Canada Workers Benefit or if you want to continue receiving your Canada Child Benefit
- If you attended school and have eligible tuition fees, you must declare the amounts on your tax return, even if you are not using them. You might not need to use the credits this year, but in order to carryforward or transfer them, they must be reported on your current year tax return.
- If you or your spouse want to continue to receive Guaranteed Income Supplement on your Old Age Security payments.
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Learn Which Credits And Deductions You Can Take
Getting a sense of which can help you pull together the proper documentation. Here are a few to consider:
- Savers credit. If you are not a full-time student and are not being claimed as a dependent, you may be eligible for a tax credit if you contribute to a retirement plan. The amount of the credit depends on your filing status and adjusted gross income. For the 2022 tax year, if your filing status is single, you may be eligible if your adjusted gross income is $34,000 or less. If you are married and are filing jointly, you may be eligible if your adjusted gross income is $68,000 or less. However, these numbers are subject to change in future tax years.
- Student loan interest. You can deduct up to $2,500 in interest payments, depending on your modified adjusted gross income.
- Charitable deductions. Donating to your alma mater or a favorite charity? Generally, you can deduct qualified charitable donations if you itemize your taxes.
- Freelance expenses. If you are self-employed, you may be able to claim deductions for work-related expenses such as industry subscriptions and office supplies.
If you think you may qualify for additional credits or deductions, check the IRS website.
When Do I Get My Tax Refund
The answer to when will I get my tax refund depends from year to year.
Generally, the IRS has said that about 90% of refunds are issued within 21 days of when the return was received.
You can check on the status of your refund on the IRS website or at our Wheres My Refund page. Live updates will appear the same day e-file opens. Using this tool, you can easily track the progress of your return as it is processed.
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File Electronically And Choose Direct Deposit
To speed refunds, the IRS urges taxpayers to file electronically with direct deposit information as soon as they have everything they need to file an accurate return. If the return includes errors or is incomplete, it may require further review that may slow the tax refund. Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing.
Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers. The IRS has incorporated recent changes to the tax laws into the forms and instructions and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov. For the latest IRS forms and instructions, visit the IRS website at IRS.gov/forms .
Tax Brackets And Tax Rates
Progressive rates are set using tax brackets. A tax bracket is a range of income taxed at a certain rate.
The tax bracket within which your taxable income falls along with your filing status determines the tax rate you will pay on each portion of your income.
2021 Tax Rates and Tax Brackets by Filing Status
Tax brackets are adjusted each year based on inflation. This means the top end of your income may have shifted into a new tax bracket since you last filed taxes. Receiving a raise in the past year may also mean that the upper end of your income moved into a higher bracket.
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Minimum Age To File Tax Return In Canada
The Canada Revenue Agency requires all individuals earning income in Canada, to file a tax return and pay the appropriate income tax in any year their gross income exceeds certain levels, regardless of age, to file a tax return and pay the appropriate income tax in any year their gross income exceeds certain levels. There is no specific age. It depends on whether you have earned enough income to do so. If you earn more than the amount of the personal exemption allowed by the Canada Revenue Agency within one tax year, you will need to report that income on an annual tax return.