That’s right, tax season is upon us again, Calgarians!
But before you break into a cold sweat, take a deep breath and avoid unnecessary stress and penalties with our brief guide to staying “CRA-safe” in 2024.
Here’s what you need to know:
- Missing the April 30th deadline for filing your return or paying your balance comes with consequences. The CRA charges compound daily interest on unpaid taxes starting May 1st, and late-filing penalties that start at 5% of your 2023 balance owing and increase by 1% per month (up to 12 months). Check the CRA website for current interest rates and more details on penalties.
- The good news: Even if you can’t pay your full balance by April 30th, filing your return on time helps you avoid the late-filing penalty on top of the interest charges.
Now, let’s explore how you can:
• File your return on time, even if you can’t pay the full amount
• Pay outstanding balances and minimize interest charges
• Organize your records and make filing a breeze
• Work with accounting professionals to maximize your refund
Ready to ditch the tax season headache? Let’s dive in!
How to avoid unnecessary CRA charges in 2024
1. File Your Return on Time:
- Don’t wait until the last minute! Start gathering your tax slips and receipts early to avoid the stress of a rushed filing process.
- Mark your calendar with the April 30th deadline clearly visible to ensure you don’t miss it.
- Familiarize yourself with the deductions and credits you may be eligible for in advance. This will help you ensure you claim everything you’re entitled to.
2. Pay Outstanding Balances Promptly:
- Even partial payments on your balance can help reduce the amount of interest you accrue.
- Consider creating a budget and savings plan to ensure you can pay off your balance as soon as possible.
- If full payment is challenging, explore payment arrangements with the CRA to avoid further penalties.
3. Stay Organized and Keep Good Records:
- Gather and categorize your tax slips throughout the year for easier reference during filing.
- Maintain digital copies of your receipts and documents to avoid lost or misplaced paperwork.
- Label and store your financial records securely for future reference and potential audits.
4. Work with Calgary Accounting Professionals:
- Benefit from the expertise of local Calgary accountants in navigating the complexities of Canadian tax laws and regulations.
- Ensure you claim all eligible deductions and credits to maximize your potential refund.
- Receive guidance and support throughout the filing process, minimizing your risk of errors and penalties.
If you need help with your 2023 tax filing and understanding CRA regulations, feel free to reach out to RMI. We can assist you in maintaining compliance, preventing unnecessary charges, and potentially optimizing your refund.
Book a consultation with us today or contact us at 403-457-4232 or info@rmillp.com.
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