Each year, income tax slabs and tax credits undergo a change – thanks to the changes introduced by the CRA from time to time. The main objective behind the introduction of changes to the existing tax practices is to ensure the average Canadians are able to reap the benefits of improvement in services.
Read on to find out more about the new aspects related to CRA taxes in the current year.
The Deadline to File CRA Tax Return
The deadline for filing CRA tax in 2018 was April 30. If you, your common-law partner or spouse are self-employed but have not filed the return yet, do not worry. You still have time until June 15, 2018. However, the outstanding balance will still be due April 30.
Late filers will have to pay a 5% penalty on their unpaid balance. In addition, they will also need to pay 1% of the payable balance for the number of months by which their return is delayed, up to a maximum of 12 months. There’s more – unsettled balances also attract an additional penalty in the form of interest charges that are calculated on a daily basis. These charges apply to late-filing penalties too.
Revision to Canadian Tax Credits That Will Come into Effect in 2018
As for Canadian tax, a new credit, coupled with two revised credits, will be applied in 2018. It is important for Canadian taxpayers to know about it. Here’s what you need to know.
The Canada Caregiver Credit
The Canada Caregiver Credit is the substitute of the family caregiver credit. As a non-refundable tax credit, it is for the infirm members of a family who are above 18 years of age but are dependent on the earning member of a family. This may include a spouse, parent, children or other members of a family with physical and mental challenges. If any of your family members meet this criterion and you are living with them, this credit is applicable to you.
The Disability Tax Credit (DTC)
Though not new, the nurse practitioners in Canada can certify the Disability Tax Credit.
The Medical Expenses Tax Credit
This retroactive credit covers the expenses incurred in conceiving a child. Even as you are not subjected to other medical conditions, the credit still applies. Because it is retroactive, you can request a virtual overhaul of your income tax returns so as to include expenses related to fertility.
New Services Pertaining to Tax from The CRA in 2018
To do away with the tedious paperwork involved in filing a paper return in 2018, the CRA will send income tax forms to Canadian taxpayers who file paper returns. Yes, that’s right – you need to worry about going to Canada Post or other similar locations to collect your printed tax guides or forms anymore.
For those who have been filing electronically thus far, they have two options – they may either download forms on the internet or request for paper copies from the CRA.
Submit Your Tax Returns Over The Phone
For taxpayers who belong to the low-income of fixed income group, the CRA had introduced the concept of filing taxes over the phone by answering a few questions using an automated service. The simple, secure and free service was only intended for select individuals who were available until April 30, 2018, from February 26, 2018.
The CRA BizApp
As a major step to facilitate mobile users among small business owners, the CRA has launched the new CRA BizApp. Available for 21 hours a day, it lets users access the following accounts;
- Corporation income tax
- Excise duty
GST/HST accounts, except for those that are controlled by Revenue Quebec
The good thing about this app is that viewing the outstanding balances aside, it also allows for the settlement of the expenses, check the transactions and expected GST/ HST returns, and seek information about them. You can get access to these services by signing in with the login credentials offered by the CRA. If you have not got one yet, you are required to register for the same.
Other Improved Services
Besides the ones listed above, certain other services have also undergone an improvement in 2018. These include the following:
- Adjustment of tax returns using ReFILE
Additional information about an account via email
- Enhanced security of accounts with automated alerts
- Payment of taxes in person’
- Auto-populated feature to file one’s return
However, to access these popular services, a user needs to be registered for My Account and also CRA’s mailing service on the internet, as soon as they receive their notice of assessment. If you have questions and doubts regarding filing your CRA taxes, or tax audit and reassessment in North York Ontario, feel free to contact our experts at your earliest convenience.