Tax Tips

What is the last date of payment for 2016 tax owings?

If you still owe any tax amount, greater than $2, make sure that you make the payment before 30th April, 2017. Any time beyond that, and you would be charged a late penalty or an interest.

When do I have to pay my taxes in installments?

If you are a non-Quebec resident and owe more than $3000 as taxes, yes, you have to pay your taxes in installments. For Quebec residents, the amount shrinks down to $ 1800. The installments can be payed on due dates throughout the calender year instead of a whole lump-some on 30th April. CRA reminds individuals who might have to pay their taxes in installments about the due date of payment and the amount to be payed.

When do I have to pay my tax installments in 2017?

You have to pay your installments on March 15, June 15, September 15 and December 15. Please remember that advances for installments are not accepted. You have to make payments through the various payment means on the specified dates only.

What happens if you have overpaid your tax installment?

When that happens, you may either make a call on 18009598281, or send a letter to your tax center. Your case will be taken into consideration and the over-payed balance would be returned to you.

I lost my spouse in an accident in the middle of the year. Shall I still have to pay taxes?

If a person who is supposed to pay taxes is deceased at any time during the year, no one has to pay taxes on his/her behalf. It gets exempted automatically.

I am not being able to arrange to pay my taxes and balance owings. What should I do?

CRA does not provide any assistance until it is completely verified that you have made every possible effort to arrange for the balance and present tax amount. If the CRA approves of it, agents can help you chalk out a plan, using which you can pay your taxes on time.

Do I have to pay interest or penalties on unpaid tax amounts from previous years?

Well, yes. Interest amounts to 5% of your core balance owing from the previous year (in this case 2016), and is compounded at 1% every month, till the amount is paid off in full. In case you owe tax amounts from years earlier that 2016, a 10% on the core balance amount, compounded at 2% per month is charged.

I am self-employed. When are the last dates for me to pay my taxes?

If you or your spouse/partner owned and ran a business in 2016, you are supposed to file your returns before or on June 15, 2017. Owings of earlier years however, have to be cleared off before or on 30th April, 2017.

My 7-year old son is physically impaired. Do I get some kind of relief?

If you are caring for a physically impaired child, such that he/she solely depends on you for his/her daily necessities, and if you succeed to provide a proof from a doctor regarding the same - you can claim a benefit of $2058.

Do I have to apply separately for my GST/HST credit?

No, you don't have to. It is a new development this year Once you file your 2016 income tax return, CRA will evaluate your eligibility for the GST/HST credit. Those who are eligible for GST/HST credit, will be provided with the same on or before the 5th of each quarter.

I am not 19 years old, but I am married. Am I still eligible for GST/HST on the age criteria?

Yes you are. Usually the condition is, you have to be atleast 19 years old. If however, you are younger, but are married, are a parent or are living common law, you become eligible to claim GST/HST.

When can I expect to get my CCTB payments?

CRA makes payments for CCTB on the 20th of every month, starting from July of one year, ending June, the next year. If however, the CCTB amount that you deserve, runs less than $240, CRA makes the complete payment in a lump on the 20th of July.

When do I expect UCCB payments for my child?

UCCB amount has been increased from $100 per child to $160 per child in 2017. UCCB payments are made every month on the 20th, starting January, ending December.

Do I need to preserve my tax documents and receipts for more than a year?

CRA advises tax payers to protect and preserve their tax related documents for a period, as long as 6 years. The reason is, CRA might choose to review your tax payments, credits and benefits for a particular year, a couple of years after you have made the payments. Under such a scenario, CRA might demand the submission of supporting documents, other than the receipt.

Under what circumstances may I claim the deduction amount for an eligible dependent?

An eligible dependent does not mean your spouse. Hence, you can claim the amount when and if,
  • You were supporting the person when you were not living with your spouse or partner, or when your spouse/partner was not supporting you
  • You supported the dependent when he/she stayed with you at a stretch. A dependent who is a random visitor to your place is not paid for.
  • The dependent was your parent/ grandparent by blood/ adoption
  • The dependent was your brother, sister, child or grandchild by blood/adoption/common law.

My stepson is 17 years old, but is suffering from physical impairment. Can I claim child care expenses under tax deductions?

Normally, child care expenses are deductable only for children belonging to you, your spouse or your common-law partner, either by blood or by adoption, who are below 16 years of age. However, physically or mentally impaired children above the age of 16 are eligible for a deduction claim for child care expenses.

Does CRA accept electronic transfers?

Well yes! CRA prefers to have direct electronic transfers to be made. You might use your debit card or credit card to do the same. It makes things easier not only for CRA, but makes refunds easier for you too! Tax payments made through e-transfers are quick and secure. Since returns and benefit claims are received quickly at CRA, refunds are process at the earliest hour possible!

Is it mandatory to clear off my tax owings, even when I donot have enough resources to arrange for the same?

Tax owings are sort of debts that you owe to the Federal Government of Canada. Remember that the principal amount of the owings are subject to interest claims that are compounded each month. The more you delay it, the higher you would have to pay. In case you do not have funds enough to pay off your owings, a CRA representative or agent might help you plan out a suitable arrangement, so that you can get your hands clear off tax owing.

I have bought a new house in 2016. Do I deserve benefits?

New house owners, who did not posses an owned house in 2016 or in the 4 years preceding 2016 are eligible to get the new house owners benefit. To get a complete understanding of the benefit, please visit -