With all of your classes, homework, exams, and more, what could possibly be left to learn? Filing your taxes in Canada might not have made it into the curriculum, but we’re here to show you the ropes. Taxes are a lifelong journey and a great habit to establish early, so tax season becomes a breeze as you get older.
At what age do you start paying taxes in Canada?
There is no definite age for one to start paying federal income tax in Canada. This happens when you start earning above a certain annual amount. Your employer may be deducting your income tax at source and sending it directly to CRA. Even if your total yearly earnings are less than the basic personal amount, which every Canadian citizen can make without being taxed on it, you should still file so as to get the money back as a refund.
Refunds also occur when credits and deductions reduce the amount of tax you paid. You can claim some tuition fees and other eligible medical expenses. In the case of this kind of tuition fee, even though it’s possible for one to carry forward this credit into subsequent years when their income level has increased substantially.
What happens if I miss the filing deadline?
For most 2023 tax returns, the deadline is April 30th, 2024. The good news is that if you don’t owe any more money, there are no penalties for missing this date. In this scenario, filing early or on time makes sense because if you do so, you will receive your refund faster. It means extra cash in your wallet to pay down debt, invest, or take a vacation.
If additional taxes are owed but missed beyond the deadline for filing then late-filing penalties may apply depending on how much money was owed. Even though it might not be possible to pay immediately amounts owing from taxes. However, one has always found that meeting such deadlines would be useful since they could avoid other initial penalties.
Know what credits and deductions you’re eligible for.
Being a student costs a lot! More time spent studying usually means fewer opportunities to work and earn an income. Faith Accounting & Tax Inc. can help you find every last tax credit, exception, and deduction that applies to you. Young Canadians are eligible for the same tax credits as everyone else, but there are some that are more likely to use if you’re under 25 of age.
These include tuition tax credits, RRSP contributions, moving expenses, and self-employment expenses. Broke? Then, start earning credits or deductions!
What if I make a mistake on my tax return?
Mistakes happen from time to time! Including taxes. However, the Canada Revenue Agency allows one to change a return filed during the previous ten years. You must wait until you have received your NOA for that return before filing an adjustment request form. Following approval of the adjustments made, you will receive a Notice of Reassessment.
To avoid any errors in your return, it would be wise to file with Faith Accounting & Tax Inc help.