The Top Five Canadian Tax Return Questions Answered

Part of the 78 Tax Tips For Canadians For Dummies Cheat Sheet

When should you file your Canadian tax return? How do you get missing tax forms from the Canada Revenue Agency? These are just a couple of the common questions that arise at tax time. This article gives you the answers you need to eliminate tax-time stress and worry.

  • Where do I file?

    If you choose to paper-file your return, the address where you send your tax return depends on where you live. The Canada Revenue Agency (CRA) sends you mailing labels in your tax package each year, but if you’ve misplaced them you can visit the CRA Web site to obtain the address of the tax office where you should send your return. You can also call 1-800-959-8281 to request this information.

  • When is my return due?

    Your income tax return is due on April 30 each year, or June 15 if you or your spouse ran a business in the year, although if you owe tax your payment is due on or before April 30). If you owe taxes, make sure your return is transmitted or postmarked before midnight on the due date to avoid late-filing penalties and interest.

  • What happens if I file late?

    If you file your return late and you owe taxes, you’ll automatically be charged a penalty of 5 percent of your balance owing. On top of that, you’ll face a penalty of 1 percent of the balance owing for each month your return remains outstanding, to a maximum of 12 months. And don’t forget the interest: the CRA charges interest, compounded daily, on outstanding balances and penalties. At the time of writing, the interest rate on overdue taxes was 5 percent, but this could change quarterly.

  • Can I change my return if I find a mistake?

    Yes, you can file a T1 Adjustment using form T1-ADJ, “T1 Adjustment Request,” to amend your return for any mistakes you may find after the fact. You can also request changes online under the “My Account” option on the CRA Web site.

  • Where can I get missing forms?

    The majority of the CRA forms are available for download from the CRA Web site. To order forms by phone, call 1-800-959-2221. If you’re missing the package and guide sent to you by the CRA, you can pick up a copy at your local post office.

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78 Tax Tips For Canadians For Dummies Cheat Sheet

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