There’s a popular saying that goes, “Everyone procrastinates, but not everyone is a procrastinator.” It’s a given that we’re all probably guilty of putting things off to the last minute, like buying a gift for a friend’s birthday party or calling a restaurant to make a reservation an hour before the party. Both of these things have a workaround to them, and there are alternatives. However, it’s a different scenario when you put off something that could lead you to paying a penalty – like when you file your taxes late.

Filing taxes at the last minute is an all-too-common scenario, but fortunately, there are ways to successfully file your taxes on time even at the last minute. Read on for our suggestions below.

1. Gather all your receipts.

For time efficiency, gather all your receipts before you start working on your taxes. This way, you won’t need to go back and forth looking for paperwork for an expense you need to claim. Ideally, you should have all receipts in one place, whether in a file folder or a Manila envelope. If this wasn’t possible and you’re missing a few receipts here and there, retrace your steps to find out where you might have kept them.

2. Utilize online banking options.

It doesn’t matter whether you’ll have to pay or you’ll receive a refund, it’s always best to set up an online banking account that links to your Canada Revenue Agency (CRA) account. If you’re expecting a refund, sign up for the direct deposit so your refund can be directly deposited in your account. If you’re owing taxes, simply add CRA as the payee – the account number will be your Social Insurance Number (SIN) – and from there, you can easily settle what you owe.

3. Have a professional do your taxes.

If you’re struggling to do your taxes and cannot seem to figure out how to claim expenses and do write-offs, it’s best to have a professional do your taxes on your behalf. Remember, your tax forms are a legal document, and if you’re mainly doing guesswork because you’re running out of time, it will have dire consequences. An error in reporting your expenses can result in a fine or a visit from an auditor for reassessment. Keep in mind that it’s important to report everything accurately, and so seeking the help of a professional tax preparer can go a long way. Some charge a fee as much as $60, but if you don’t want to shell out cash, you can go to a volunteer tax clinic instead.

4. Make payment arrangements.

If you’re anticipating that you’ll owe taxes and you don’t have the means to pay at this time, remember that it’s better to file on time than put it off just because you’re unable to pay. There are payment arrangement options available, as the CRA recognizes that people have different abilities to pay especially under the circumstances because of the pandemic. Exploring these flexible options beforehand can relieve you of the anxiety of paying upfront.

Filing taxes early on is the ideal scenario so you can avoid last-minute filing which can result in errors and penalties. However, if you’re quickly running out of time, it’s still possible to get your taxes done by following the recommendations above.

Sources

Government of Canada. “Last-minute tax-filing tips.” https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/last-minute-tax-filing-tips.html