It’s Time for Taxes – Your Essential Checklist for 2019
It’s nearly April already, which means the filing deadline for taxes is nearly upon us.
Although tax season is never a fun time, it doesn’t have to be stressful. The Newport Group has prepared an essential checklist to help you stay on top of the process and make the most of the 2019 tax season.
Important Dates for Taxes in 2019
If there is a chance that you owe taxes this year, the due date for filing your documentation is April 30th, 2019. Make sure you get your information together in advance of the deadline to avoid filing late.
If you end up filing late, you’ll have to pay a penalty as well as interest on what you already owe.
However, if you’re self-employed, your deadline can be extended up to June 15th, 2019. Even if this is the case for you, you should still make sure to pay any outstanding taxes you owe the CRA (Canada Revenue Agency).
Tax Deductions for 2019
You may be available for some deductions in 2019. Here are some common deductions to check out when filing your taxes:
- RRSP contributions – If you’ve contributed to a registered retirement savings plan, you will receive a tax slip that you can claim for deductions.
- Medical expenses – Did you know that you can claim medical expenses for a 12-month period? If your medical expenses are above $2,171 or 3% of your income, you will get a credit for the next tax season.
- Business expenses – Most business expenses can be deducted. Be sure to check out the CRA website to find out what can be deducted.
- Donations – Keep the receipts of all donations you’ve made for the past five years (if you have not claimed them in the past tax seasons).
- First-time homeowners – If you’ve purchased your first home in 2018, great news! You’re eligible for a tax credit of $5,000.
- Students or recent graduates – Tuition and student loan interest can be deducted and carried over to higher earning years.
- Parents – Fees for childcare, children’s fitness, and children’s arts can be claimed for deduction. Note that there is a max amount of $1,000 per child for fitness fees and $500 per child for art fees.
What’s New This Tax Season
Although there were several changes in 2018 relating to taxes, like loss of tax credits for transportation and textbooks, you should note that 2019 hasn’t changed in contrast.
Earlier this year, some sources claimed that middle-class families could expect a tax hike of up to $2,200, but the truth is quite far from this. For workers making $55,000, you can expect to pay $7 extra per month in CPP contributions this year.
You’re All Set – How to Get Started
Now that you’re ready for tax season, it’s time to get started on filing.
You have several options available:
- Send paper forms by mail
- File your tax return via the Internet
- Have your tax return prepared by a professional