Duggal Professional Corporation

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What You Need to Know About Filing Your First Tax Return in Canada

Filing taxes is an essential responsibility of taxpayers and business owners in Canada. It
helps you avoid penalty charges, access financial advantages you are eligible for, and several
benefits. To make the process less overwhelming, you could learn more about tax filing in
Edmonton or other surrounding areas, and we can guide you through the process.

 

This article breaks down everything you need to know. Whether you're navigating deadlines
or looking for tips on credits and avoiding mistakes, you'll find useful insights here.

 

Understanding Deadlines

 

Meeting deadlines is critical to avoid late fees and interest. Here are some of the main dates
to remember:


• April 30: The deadline to submit the individual tax returns and any outstanding
balance. Filing early would avoid penalties, as well as ample time for error
correction.
• June 15: It is the deadline for self-employed persons to file; however, the taxes paid
amount needs to be submitted by April 30. All expenses must be maintained during
the year.
• February 28: This is the due date for employers to provide T4 slips to employees.
This gives enough time for employees to review their income slips to confirm
whether everything is correct.


By noting all these dates, you will be in an excellent position to make your tax filing
Edmonton
process run as smoothly and technically hitch-free. In fact, for first time filers,
this would be a point of awesomeness to understand that missing a date can attract fines
and charges in interest.

 

Preparing for a Successful Tax Filing

 

As we have mentioned above, filing one's taxes may seem complicated, but preparation
makes it more manageable. So, you should start with gathering all tax slips, receipts, and
financial records. Also, create a checklist so that you will be guided all throughout the
process. Preparation will make filing much faster and less likely to make mistakes.
Here are some key steps to guide you:


1. Choose a Filing Method: Decide whether you will file using CRA-certified software, a
tax preparer, or by mailing a paper return. CRA-certified software often includes
error checks, which can be helpful for first-time filers. You can also find software that
integrates with your CRA account for added convenience.


2. Check Your CRA My Account: Make sure your account is active so you can track
information, notices, and document submissions. This account allows you to access
past tax returns, direct deposit options, and notices of assessment. It's also useful for
confirming receipt of your return.


3. Report All Income Sources: Include income from employment, side businesses, and
investments. Even side hustles or gig work must be declared. Failing to report any
income, even small amounts, can lead to CRA penalties.

Avoiding Common Filing Mistakes


There are many errors that can result in delays, penalties, or audits. Some common errors,
along with how to avoid them, include;


• Missing Income Reports: You must attach all types of income sources, including
freelancing and investments. Before submissions, crosscheck your slips, among
which T4s, T5s, and records of rental incomes are included.
• Wrong Banking Information: Direct deposit information could delay your refund.
Updating banking information is quite straightforward on the CRA account.
• Things You Might Miss: Medical expenses, student loan interest, and home office
expenses can reduce the tax you pay. Keeping your receipts and records can help
with that.
• Not Filing If You Have No Income: Some filers believe that if they make very little
money or no money at all, they don't need to file. Well, this is not the case; it can
actually provide you with certain credits like the GST/HST credit.

 

Using a trusted tax service or consulting small business tax accountants in Edmonton can
help catch these mistakes and ensure a smooth filing experience.

Maximizing Your Tax Refund

 

To get the most out of your refund, take advantage of available tax credits and deductions,
some are mentioned below:


i. Basic Personal Amount: A non-refundable credit that reduces taxable income. This
amount adjusts annually.
ii. GST/HST Credit: Quarterly payments to support low- and middle-income Canadians.
iii. Canada Employment Amount: Reduces taxes owed for work-related expenses.
iv. Home Office Expenses: Many working-from-home Canadians can claim a part of
their rent, utilities, and internet.
v. Tuition Tax Credit: Post-secondary students can lower their taxes by claiming tuition
fees.


If you're new to filing, make sure you also check if you qualify for the Canada Training
Credit. This refundable credit is available for those who have invested in eligible courses to
improve their professional skills.


Why You Should Consider Professional Help

 

Some situations, such as being self-employed or earning from multiple sources, can be
complicated. You should seek professionals because:


• They make sure your return is accurate and follows the guidelines.
• They spot those you do not see, which includes deductions and credits.
• Saves time, minimizing chances of mistakes.


Professional Small business tax accountants in Edmonton provide tailored support for local
businesses, ensuring that tax planning and filing meet specific needs and regulations. You
can also ask them to plan your taxes for next year, so you do not face surprises during tax
season.

 

Final Thoughts: Make Tax Season Stress-Free
Staying organized and informed makes the process easier. However, sometimes things do
not work accordingly, and you need helping hands. Thus, instead of making mistakes in your
return, it's better to reach out to a professional.


In this situation, Duggal Professional Corporation can be your one-stop solution. We offer
expert services to simplify tax filing in Edmonton or throughout the country. We can help
plan, prepare, or file for you.


We are ready to make it easy for you. Call us today to ensure your taxes are properly taken care of.