Why File a Tax Return If You Don’t Owe?
Filing your income tax return is an important part of strategic financial management. Make this yearly chore work to your advantage with good planning.
The personal income tax deadline is April 30th. If you’re self employed, it’s June 15th; but your tax bill must be paid by April 30th (to avoid penalties).
Why file a return if you don’t owe?
If you didn’t work or had earnings low enough to scoot under the basic personal exemption amount, it’s still smart to file your return. Here are some excellent reasons.
Some government benefits are based on your income and tied to your yearly tax return, including the Canada Child Benefit, GST/HST credit and certain benefits available to seniors.
You might even get money back. This includes tax deducted from your paycheque. Refundable credits, designed to offset taxes owed, could also provide an unexpected refund.
If you’re pretty sure you don’t owe money, do your tax return to confirm it. Make certain you’re not in line for some unwelcome late-payment penalties, and interest that accrues monthly. Put this cash to better use than paying a fine.
Ask your Financial Advisor how to make that tax return work to your best advantage and discuss proven strategies to pay less tax in the future.
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