One of the stressful times for Canadians is tax season. Some people set aside filing taxes until the last minute, which can add up to more stress. Tax professionals strongly recommend filing taxes the earlier time possible. There are benefits to doing so and it includes the following:
- Instant tax refund – Getting your tax refund sooner is one of the main motivations for filing early. Once you file your taxes, they are processed by the Canada Revenue Agency. During tax season, expect a high volume of people, which could mean a high volume of works for the CRA, and it might cause for your refund to be delayed. When filing electronically, early filers usually get their refunds in two weeks as opposed to significantly lengthier wait times nearer the deadline. Filing your tax early could quality you for same day tax refund online, especially if you get in touch with tax professionals.
- Avoid penalties such as late fees – For most people, there are penalties for missing the deadline if you owe taxes. The CRA levies a late-filing penalty equal to 5% of your outstanding sum plus an extra 1%. These penalties may be considerably more severe if you have previously been assessed a late fee. By filing early, you can avoid these expensive fees.
- Be able to plan your tax payments – You are not required to pay immediately if you file early. Filing ahead of time if you owe taxes allows you more time to manage your finances and make sure you have enough money to pay by the deadline, which is April 30. For independent contractors, freelancers, and gig workers whose income is not immediately taxed, this is quite helpful. Filing early allows you to spread out payments or save aside money gradually instead of rushing to obtain funds at the last minute.
Filing your tax before the deadline or better yet earlier than the deadline can save you from so much trouble. It also increases your chances of getting instant tax returns. You can get a better understanding of the process if you consult a tax professional.
