So you missed the tax filing deadline, now what?

April 30 has come and gone, and we accountants have survived another personal tax season in Canada.  But we’re not done yet – the deadline for self-employed individuals is June 15, and some other taxpayers may not have been concerned about meeting the April 30th deadline.

Taxpayer:  I know I’m getting a refund (or don’t owe any tax), and I haven’t filed my return yet.  Do I still need to file my tax return?

YES! Here’s why:
1) Your refund is your money…as long as you don’t file your income tax return to claim that refund, and it’s sitting with the Receiver General, you’re giving them an interest-free loan with your money.  Also, note that CRA has limitations on how far back they can issue refunds.  The CRA will only issue a refund if you file your tax return within 3 years of when it is due (i.e., by April 30, 2018 for your 2014 income tax return).  For returns with refunds owing beyond that time (up to 10 years late), you may still get your refund (or at least have it applied to taxes owing in other years) under certain circumstances and only if you apply for relief (but this is not guaranteed and up to CRA’s discretion).

2) If it turns out that you OWE taxes (either you miscalculated or CRA finds adjustments), the penalty for late-filing is 5% of the balance due, plus 1% per month that is late, plus interest.  For repeat offenders (you filed late more than 2 years in a row), the penalty can be double.  That’s a huge risk to take for not filing your return on time.

3) You could be missing out on tax-free money that the government gives certain groups of taxpayers

A) GST credits for lower-income taxpayers
B) Ontario Tax benefits (or other similar provincial tax credits) relating to sales tax and rent/property tax for lower-income taxpayers
C) Canada Child Benefits for families with children under the age of 18 (all families get a minimum amount based on the number of children they have; lower-income families get more)
D) Old Age Security Guaranteed Income Supplement for low-income seniors

Most of these programs have a July to June payment period based on your prior year income tax return.  If you file late, payments will at the very least be delayed.  This can be a huge cash flow problem for lower-income families who depend on these tax benefits to supplement their basic needs.  So filing on time, or as soon as possible after the deadline, is important.  AND if you’re self-employed, these are reasons to file sooner than later, and not to wait until the June 15th filing deadline.

And if you’re not filing your tax return to claim your refunds and other tax benefits, where else are you refusing to receive money that belongs to you?  Perhaps it’s in your business, with your clients, or in your job, or from friends and family members.

If you would like assistance in claiming your refunds and tax benefits, or don’t know where to start, feel free to contact me (Linda@visionspire.ca) for a complimentary consultation.  And if I can’t help you, chances are I’ll know someone who can.

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[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/12/IMG_0012-resize-square.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money Mindfulness Coach. With over 20years of assisting business owners with the business and tax strategies, her mission is to eliminate stress and anxiety people experience around money and taxes, by empowering them with the tools, knowledge, strategies and mindsets that will put them in the driver’s seat of their business success and financial wellness, so they can have more harmony, joy and abundance in their life. [/author_info] [/author]

Getting Comfortable with Money

The more comfortable you get with Money, the more you empower yourself.

I hear many people say they don’t pay attention to their finances because it stresses them out (likely a huge factor behind today’s low financial literacy rates).  One of the reasons for this stress is that they don’t know what to look at or what to do.

Let me tell you a story to shift this perspective.

I have a client who, 9 months ago, had this same perception of money – it was stressful.  She never looked at her numbers, and as long as her debit card worked, she felt everything was ok.  Her husband took care of all the finances (and the stress of dealing with it).  He balanced her books for her and took care of their personal money matters for which she had no awareness or interest.

Then she heard me speak about having a relationship with Money (instead of treating it like just a thing, or a “necessary evil”), which completely shifted her perception and way of being with Money.  She started paying attention to it, understanding it, and looking for ways to bring more money in.

This client recently told me that she now looks at her numbers daily, has gone to her bank about reducing fees and asking about investments (something she had zero knowledge of 9 months ago), and is becoming her own money “guru”.

This new “relationship” with money has empowered her beyond her imagination (and beyond her husband’s imagination) – giving her more confidence in her business and in her relationships, and resulting in greater ease for her business and her family.

Money is the #1 factor causing stress in North America, but it doesn’t have to be.  When you shift your perceptions, and pay attention to your finances, ask questions and learn more about them, you WILL become empowered to take INSPIRED action to build your net worth.

What actions will you take today to empower yourself with money and finance?

 

[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/06/Linda-Spencer-Visionspire-cropped.jpg[/author_image] [author_info]Linda Spencer brings 20 years of professional accounting and tax knowledge to her more recent accreditation as a Certified Money, Marketing & Soul Coach. Through her money mindset and profitability workshops, group training programs, guest speaking and 1-1 coaching, she helps heart centered business owners transform their relationship with money & finance (reducing their money stress), so they can do more of what they love with greater ease and joy. If you would like to be more empowered to create the business (and life) you imagine, with Money as your PARTNER, Linda can help. Contact her for a no-obligation 30 minute complimentary Clarity Call to learn what your next steps should be. [/author_info] [/author]

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