Whether you are a resident in our home community of Grande Prairie, Alberta, live somewhere else in Canada or live the Canadian snowbird lifestyle if you’ve earned personal or business income in 2022, now’s the time to start planning for tax season. Our team here at McNabb Lucuk LLP summarizes the upcoming 2023 personal and business tax deadlines to help you get organized.
Personal Tax Filing
Did you earn Employment Income?
In most instances, employed individuals need to file and pay any tax amounts owing by May 1, 2023. Start now by reaching out to your accountant or tax preparer for a general list of tax documents or make your own based on any expected tax documents. Once documents start arriving by mail or online, collect them into a single envelope or folder on your computer. The most common examples for employees are employment T4s, RRSP contribution receipts for 2022 and the first 60 days of 2023, and travel receipts.
If you’ve made efficiency upgrades to your home, hired childcare or paid out of pocket for medical expenses, collect all receipts or proof of payment too. If you are unsure if you qualify for a Canadian tax credit, being prepared with appropriate documentation helps ensure you are receiving informed recommendations from the person filing on your behalf.
Did you earn Self Employment Income?
If you are single or married with either spouse earning self-employment income in 2022, your individual or combined tax filing is due by June 15, 2022. This extended period gives self-employed Canadians a longer window to get organized for filing. However, tax amounts owing are due by the May 1 deadline. If you think you may be in a taxes owed situation, we recommend starting early to avoid penalties.
When Are Tax Installment Payments Due?
Where you live in Canada on December 31 determines your net tax owing threshold for tax installments (CRA). In Grande Prairie, those expecting to owe more than $3,000 in 2023 can use the Tax Installment Plan to submit quarterly payments to CRA on March 15, June 15, September 15 and December 15, 2023.
RRSP Contributions
The 2022 Registered Retirement Savings Plan (RRSP) deadline to make contributions personal or spousal contributions is March 1, 2023. Read more about RRSPs in our blog, Why You Should Save in an RRSP.
Business Tax Filing
Six months after Corporate Year-End, Canadian business tax filings are due. If a business has a year-end date that’s mid-month or month-end, the due date is the same day of the sixth month. For example, a business with a year-end of February 15 will have a tax filing deadline of August 15, 2023.
Although your business has six months to file its annual return, on average companies have just two months from year-end to calculate and pay any balance owed. However, a business has an additional month, or three months from year-end to pay balances owed if the following applies:
- The Business is a Canadian-controlled private corporation.
- The Corporation had less than $500,000 in the previous year.
- The Corporation is claiming the small business deduction for the current or past year.
When Are GST Reports Due
Quarterly or Monthly Reporting
Corporations reporting and paying Goods and Services Tax (GST) at monthly or quarterly intervals, can expect GST reports and amounts owing to be due one month following the end of the reporting period.
Annual Reporting
Annual GST filers, except for individuals with a December 31 year-end date, must submit reports and any amounts owing, three months following the year-end date.
If you are an individual with a year-end date of December 31st and file GST annually, any GST owing is due May 1, 2023, with a reporting deadline of June 15, 2023.
Getting organized early for important tax deadlines can get help to mitigate the risk of expensive late penalties and delays in receiving any credits owed. The experienced team here at McNabb Lucuk LLP Chartered Professional Accountants in Grande Prairie is ready to answer your questions as we all prepare for tax season. Contact us today to get started.