montrealover
新手上路
- 注册
- 2006-03-06
- 消息
- 92
- 荣誉分数
- 0
- 声望点数
- 0
last minute to avoid penalty
"Is it too late to file my tax?"
The fact is, if you have a balance owning (or at least you think you might have so), you'd better file it in order to avoid any penalty on it. The penalty is 5% of the owning plus compound interest of 1% per month on top of this.
Last year we filed a student who originally owned $320 balance on 2003, however, because of ignore of CRA's notice, eventually he had to pay back the government almost $800 (penalty + interest).
"How can I know if I have a balance owning?"
Check your household income of 2005. Did you have any Capital gain (e.g. sold a stock or mutual fund, or a property rather than your principal residence, etc.)? Were you considered self-employeed (contractor)? Did you have any rental income last year?
It is hard to gauge especially when it comes to a family tax filing because of other related factors (non-refundable tax credit): spousal amount, dependant amount, childcare benefit and tuition credit, etc.
That's why one should see a tax preparer before Apr.30th.
Exception:
Students who had no income on tax year 2005 can relax since no balance owning would incur. He/she can file it any time during the year. The drawback is he/she would get the refund later than others. But if you are first time filer and have not applied Individual Tax Number (ITN), you will have no choice other than wait.
P.S.
One can always file or make any ajustment on the previous years' tax return. But if you think you might get a refund, you would be better off file it at the current year since you would lose your interest (of the refund) when you let the money sit at the goverment. On top of this, Tax Act is amended every year so if you wait, you might lose the benefit on current tax year.
"Is it too late to file my tax?"
The fact is, if you have a balance owning (or at least you think you might have so), you'd better file it in order to avoid any penalty on it. The penalty is 5% of the owning plus compound interest of 1% per month on top of this.
Last year we filed a student who originally owned $320 balance on 2003, however, because of ignore of CRA's notice, eventually he had to pay back the government almost $800 (penalty + interest).
"How can I know if I have a balance owning?"
Check your household income of 2005. Did you have any Capital gain (e.g. sold a stock or mutual fund, or a property rather than your principal residence, etc.)? Were you considered self-employeed (contractor)? Did you have any rental income last year?
It is hard to gauge especially when it comes to a family tax filing because of other related factors (non-refundable tax credit): spousal amount, dependant amount, childcare benefit and tuition credit, etc.
That's why one should see a tax preparer before Apr.30th.
Exception:
Students who had no income on tax year 2005 can relax since no balance owning would incur. He/she can file it any time during the year. The drawback is he/she would get the refund later than others. But if you are first time filer and have not applied Individual Tax Number (ITN), you will have no choice other than wait.
P.S.
One can always file or make any ajustment on the previous years' tax return. But if you think you might get a refund, you would be better off file it at the current year since you would lose your interest (of the refund) when you let the money sit at the goverment. On top of this, Tax Act is amended every year so if you wait, you might lose the benefit on current tax year.