It’s T4 season, and that means tax time!
This time of year can often mean a nice tax refund when you file your taxes! But to ensure you’re not scrambling at the last minute, here are a couple things to make sure you can quickly and easily file your taxes. AND get a refund, instead of owing taxes!
1. Make A List Of All Employers Throughout The Year
If you’ve only had one employer all year this will be easy.
But if you’ve had more than one employer since January 1, 2019 – make a list.
Even if you only worked one day for the employer, you will want to ensure you get a T4 from them. This is because when you’re hired as an employee (even for one day) you’re employer would have remitted taxes on your behalf. Obtaining the T4 is your way to ensure that you get your full tax refund!
2. Update Your Mailing Address
Contact each of the employers on the list that you created in Step #1.
Your goal is to ensure they have all of your most up to date information. This includes your:
- Mailing address (most important as it often changes!)
- Full legal name
- Social insurance number
- Date of birth
Did you know that the average person moves 11.7 times during their lifetime? But that the vast majority of these moves occur before the age of 28.
This is because there are so many life changes that often occur in our teens and 20’s.
So if you’re a student who is away at school, or maybe you’re just not certain that you will be in the same location next year. In this case WorkSolute recommends that you consider using your parents home address, or another stationary mailing address.
Whatever you chose though, you want to ensure that all of your employers have easy access to correct and up to date information they will need to create your T4.
3. Filing Deadline
The deadline to file most personal income taxes in Canada is April 30, 2020 (for the 2019 tax year). This is extended in certain circumstances if you or your partner are self-employed. If you think this may apply to you visit the CRA website for full deadline information.
While penalties don’t apply for filing late if you are getting a refund or have a zero tax balance, they are quite heavy if you owe taxes. There is an immediate late penalty of 5% of the taxes owed. Plus ongoing penalties for each month that your tax bill is unpaid!
Never had to actually pay taxes before? Well this can certainly happen! Keep reading to find out how to avoid this.
But the takeaway is to file your taxes on time. You don’t want to add insult to injury by finding out you owe taxes, AND are charged a hefty late fee.
4. Submit TD1 Forms To All Current Employers
To avoid a scenario where you owe taxes at the end of the year – ensure that all of your current employers have up to date TD1 Forms. We covered this topic in detail in our post TD1 Forms For Employees – What Are They And Why Do I Care?.
Essentially we cover everything you need to know about TD1 forms, and how they can help ensure you aren’t paying too much tax each pay cheque (meaning you don’t have access to the money you need now). Or perhaps more importantly – don’t owe taxes come tax time!
Good luck with your taxes everyone!
How did you use your tax refund? On a vacation? To pay off credit cards? Did you buy something special? Did you pad up your savings account? Let us know – Comment below!