Didn’t File Your Taxes? What You Need To Know

We all forget to do things every once in a while. We get busy and caught up with day-to-day life, and certain things can slip our mind. But what happens when you realize that you didn't file your taxes? What you need to know can be found on this blog!

In Canada, forgetting to file your taxes is a fairly easy problem to fix! You'll want to make sure that you get on it sooner than later to ensure that you're not paying any more than you have to.

Don't Panic

When you set out to file late taxes or even taxes from years past, keep these things in mind:

1. If you’re self-employed, your taxes aren’t due until June 15th, but if you owe taxes, the payment is still due April 30th.
2. Any late tax return will incur interest and late filing penalties. 5% of what you owe will be calculated as a late filing penalty, and 1% is tacked on to the total for every month you don’t pay. Interest also accumulates on the balance owing. The sooner you file your taxes, the less you’re going to pay.
3. If you can’t afford to pay what you owe, the CRA is often willing to work out a payment plan with you. You avoid any penalties if you can meet the agreed upon deadline.
4. You can request to waive any penalties that you can't afford. Fill out form RC4288 and submit it to the Canada Revenue Agency for approval.
5. Income taxes can be filed as far back as ten years if you want your tax refund.
6. T4 statements from previous years should be accessible through your CRA account. If you've misplaced your T4's from previous jobs, you don't need to contact your employer because you can log in to your CRA account online.

Filing your taxes late is never a good idea, but it's definitely something you can recover from. Don't avoid it out of fear! You know what the penalties are and how long you have to get it done, so hop on it!

Hopefully you'll walk away from tax time with a nice refund. Will you do the smart thing with that extra cash? Here are some suggestions to make the best use of your tax refund. 

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