Most Frequently Asked Questions About Personal Tax Returns

Filing an annual tax return on time is the duty of every employee and employer to avoid interest and penalties. It can also lead to receiving rebates quickly if one is owed any money from the Canada Revenue Agency (CRA).

However, when it comes to tax, there are a ton of questions clients have but often find answers difficult to come by. Therefore, SM Professional Services LLP wants to arm you with the most accurate information available to help you file your taxes accurately. To do this, we’ve answered some of the most frequently asked questions about personal tax returns.

1. What is the deadline to file personal income taxes?
The deadline for most individuals who are not self-employed is April 30th of each year.

2. Are self-employed people required to pay taxes by April 30th when their deadline to file the return is June 15th?
Yes, any amount owed after April 30th would incur interest. Therefore, paying outstanding tax balances by April 30th or making installments during the year is advisable.

3. Do I need to file a tax return when no income was earned during the year?
There are many credits and benefits based on individual and family income. It’s recommended to file tax returns annually to be eligible for credits and benefits.

4. How many years could CRA go back and perform a tax audit?
CRA can go back seven years and perform an audit on your tax returns. Therefore, keeping all of your supporting documents for the past seven years is advisable.

5. What is the deadline to file a Corporate Tax Return (T2)?
The corporate return deadline is six months after the end of each tax year.

6. Should I incorporate my business?
It’s a very frequently asked question. The answer depends on each individual’s situation and goals. Please reach out to us for a free evaluation.

If you have more questions about tax returns, contact the experts at SM Professional Services LLP. As the best accounting firm in Saskatoon, SK, we have many years of experience and use the latest technologies to create efficiencies.

Our services include accounting, tax planning, bookkeeping, personal tax return, and payroll. We serve clients across Saskatoon, Warman, Martensville, Asquith, Vanscoy, Delisle, Dundurn, Clavet, and the surrounding areas. To learn more about how we can help you, please click here or contact us by clicking here.