Canadians have until May 2 to file their taxes, thanks to the traditional April 30 deadline that falls on Saturday. For those who are self-employed, the deadline is June 15th. But before you rush to the tax filing platform of your choice, here are some answers to any questions you may have about filing your tax return this year and how to better prepare for the next one.

When should I file my taxes?

The tax deadline is especially important in the case of Canadians who owe money in taxes, because late payment can be accompanied by penalties. If you are expecting a net positive tax return, late submission may delay the money you receive back. Andrew Bauer, an associate professor of accounting at the University of Waterloo, says the financial thing to do is to get the tax deduction as soon as possible. “Our repayment is an interest-free loan you gave to the government,” Bauer said. “The longer you wait to get your money back, the more the opportunity cost is wasted.” However, depositing too early can also have its drawbacks. Sometimes it can lead to lost information, such as a receipt of income or a discount you can claim, said Bruce Ball, vice president of taxation at Chartered Professional Accountants. “If you then realize that there was other income that you did not put on your tax return, you should go back and modify your tax return or report it,” Ball said.

What do I need to know about this tax period?

There are not many changes in the tax system this year, both tax experts said. The Canadian Revenue Service describes the relevant Website some of the changes in available incentives. If you received a COVID-related support payment in 2021, you should have received a T4 by now. Anyone who has paid a COVID benefit can claim a tax deduction in the same year that the repayment was made or the year they received the benefit. Canadians are still eligible for tax credit for home office expenses incurred while working from home. Using the simplified method, you can claim up to $ 500 this year if you worked at home for at least 50 percent of the time over a period of four weeks or more. Residents of Ontario, Manitoba, Saskatchewan and Alberta are eligible for incentive for climate action this year, a loan intended to help offset the cost of federal pollution billing. However, the payment will be disbursed in quarterly installments this year and the amount will depend on the province of residence, marital status and the number of children in the household.

What saves me the most in taxes: RRSP or TFSA?

Part of maximizing your tax return is figuring out which tax-exempt savings account is right for you each given year. A registered savings plan (RRSP) allows you to make tax deductible contributions. If you contributed $ 5,000 to an RRSP in 2021, for example, this amount is deducted from your total taxable income. When you decide to withdraw from the account, this money is taxed as income. Contributions to a Tax Free Savings Bank (TFSA) account are not tax deductible. However, money invested in the account can be tax-free. Bauer says there are many things to consider when deciding to invest in one account over the other, including when you expect to need the money. TFSAs allow you to replenish your contribution space after withdrawing money, which is not the case with an RRSP. However, an important deciding factor is how much you expect to pay in taxes now compared to the time you can withdraw money from the account. “Generally speaking, RRSPs probably make sense to people at higher tax levels because you get tax breaks in advance when you invest money,” Ball said. If you save money for retirement and expect your income to be lower then, for example, you will save taxes by taking the tax deduction this year and paying a lower tax rate at the time of retirement. CLOCKS Do you need to receive TFSA or RRSP?

How to choose between a TFSA and an RRSP

Andrew Bauer, an associate professor of accounting at the University of Waterloo, says the choice between contributing to a TFSA or an RRSP depends on your income now versus your expected income during the year you choose to withdraw. funds. (Photo: rangizzz / Shutterstock) 2:46

Why can’t the government send me an account?

Some countries, such as the United Kingdom, have non-refundable deposits that avoid the process of having to ensure that you have paid your taxes by a certain date. “I would expect that in the coming years we will probably reach this point,” Bauer said, adding that the tax filing process could be simplified for those whose income and tax deductions are reported on official bulletins. While tax filing has been greatly simplified over the years with the digitization of tax returns, Ball says the challenge with taking it one step further and eliminating the refund system is that there are many different tax rebates and rebates that can be to claim a depositor. “Credits and bookings, OAPI does not know about them. Therefore, it is difficult for them to complete a refund in advance,” he said.

How can I plan in advance?

Part of maximizing your tax return comes from scheduling in advance by keeping records of expenses that may be eligible for tax deduction or credit. And if you forget to keep track of those expenses, Ball recommends that you return to the place where you made the tax deduction and ask for a new receipt for the expense. The Canada Revenue Agency has information on available tax deductions and deductions on its website. (Justin Tang / The Canadian Press)
Another way to plan ahead, according to Bauer, is to fill out a TD1 form if you plan to contribute to your RRSP so that your employer can deduct less income tax from your payroll. “This is definitely a place where design can really make a difference,” Bauer said. Familiarity with available tax rebates and reductions is also helpful, Ball said, adding that the Canada Revenue Agency makes this information available on its website. For Canadians whose taxes are not complicated to calculate, knowing the tax system allows you to skip the $ 100 to $ 200 you may have to pay to file your tax return with an accountant. “Sorry all my accountant friends, but if you have a simple return, with a little time and care, you do not need anyone else’s help,” Bauer said.