Did you know that the CRA pays YOU interest when they make a mistake and it's corrected in your favor, years later?
They also charge you interest on your tax debt due from the filing deadline, if you file late, AND they apply a penalty (10% of your amount due) at 12:01 am after the deadline has passed.
If you're like I used to be, you work hard, are decent with numbers, and want to be a good Canadian citizen, without paying MORE taxes at deadline, and without the stress and shame that can come with not filing your tax returns for years.
I ended up MANY years behind on my taxes, and the stress of this was taking up time and holding me back from progressing financially and emotionally in my life. One day about 18 months ago CRA called me (we were in contact about my back taxes for four years at the time, but I still hadn't filed), and said they'd be forced to proceed legally, if I didn't find a way to file ALL my back tax years within 90 days.
But I managed to get everything filed and I discovered that while I didn't HATE the process, I also found myself wondering WHY the results were that in some years I owed money (and large penalties and interest), and other years I was owed a refund from CRA
Whether you're self employed, or earning your income only from your employer, or a combination of the two... It's easy to file your tax returns, but really NOT easy to file them right!
While working with
- I found people who had forgotten to file and claim tuition receipts from previous years, which meant in the years following school, they were NOT receiving the big refunds that tuition investments can generate.
- I found people who were YOUNG couples, with a baby less than a year old, who hadn't filed in a few years, completely unaware that from the baby's birth month, they would qualify to receive a generous monthly benefit amount for childcare.
- I found people who moved multiple times, around the country or province (40+ km, to a future new job or self-employment) who qualified for the CRAs generous moving expenses refund amounts, but never realized they could claim anything!
- I even found some people who had elective medical procedures and expenses (like laser eye surgery) that cost $5k+ but they didn't realize that almost ALL medical out of pocket costs can be claimed for a refund.
Most of the time, people who are earning under $50k/year, who are mostly employed by T4, and not earning untaxed side income, there will be NO YEARS where you actually OWE MORE TAXES. Every year that you file, you are likely to receive some refund amount, as well as GST refund benefits and Trillium Benefits. Especially people with very low income, ODSP or OW - you will almost never owe money, the years of lowest income will often be the highest refunds, and you will likely have relatively large Trillium benefits each year.
For every single person I've helped catch up on 4 to 9 years of taxes, each one has been VERY pleased with the results. Most of the time, even if you owe a small amount in taxes for a couple of years, you will still have qualified for benefit amounts that would completely repay the tax debt owing for you, AND still generate a refund amount.
It's worth it to get caught up, and begin to understand how you can prepare yourself to legally reduce your taxes owed and claim everything possible.
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Taxes is the FIRST/eventual place you spend your hard earned income - I can help empower you to manage your finances better, so that you reduce the amount of taxes you're paying, and keeping more of it to spend yourself - on your children, on your education, on your retirement, on lifestyle & experiences, or even just on your rent & groceries if you're struggling right now.
All my advice is non-judgemental - trust me, I have probably been there MYSELF! - and my aim is to learn more about taxes myself, and help empower you so that you get to keep more of your money.
If you’d like my help with your personal tax situation, refer to the image below
Tax Fairy Godmother
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