With April 30—the last day to do personal taxes for 2022—looming, you might be feeling the pressure to get your return filed accurately and on time. But don’t stress: These last-minute tax tips can help you handle Tax Day like a pro and potentially help you save some cash and stress along the way.
1. File On-Time
For your returns to be considered “on-time” and avoid paying late filing penalties—not to mention interest on what you owe—you’ll need to either electronically file or mail your returns by midnight before April 30, 2022. That means a timestamp (for e-filed returns) or a postmark (for mailed returns) showing April 30. If you won’t be able to file on time for any reason, be sure to file an extension.
2. Double-Check Your Deductions
If you feel confident about the deductions your online tax software found for your return, that’s fantastic. There are two prime opportunities for deductions that many taxpayers overlook, especially if you have some extra cash on hand: RRSP deductions and TFSA deductions.
3. Don’t Forget to Claim Unemployment Benefits
Even if you already paid taxes on your unemployment benefits, you need to report those earnings on your tax return.
Many people forget that they may have collected just one or two checks these still need to be accounted for.
Failing to report your unemployment income can potentially cause your tax return to be rejected, as your tax return income won’t match your income that’s been reported to the CRA.
4. Check for Simple Mistakes
While online tax prep software can review your return for glaring mistakes, they can’t check for typos. Here’s a list of important questions to ask to make sure your return is in tip-top shape before filing:
5. E-File for the Fastest Refund
While you might like the satisfaction of putting that stamp on your tax return, it could delay your refund for months. Your best bet for a speedy refund is to file electronically. Even if you don’t expect a refund, it’s best to e-file for the prompt processing of your return.
Because the CRA is chronically understaffed and has been saddled with coordinating the distribution of Covid-19 stimulus checks, people who filed by paper for 2020 or 2021 may still be waiting for their refunds. This year, refunds [for paper returns] could be delayed for months again, especially for those who choose physical checks rather than direct deposit.
6. Mail Your Return to the Right Address
If you still want to mail your tax return, be sure you’re mailing it to the correct address. You can search for the correct address by a return type and your state on the CRA website.
7. Track Your Return and Refund Online
Once you file your return, you don’t have to wonder what happens. You can create an online account with the CRA to track your return and refund status.
There’s an online guide to help you navigate your account setup. Once you’ve created an account, you can log in to see the exact status of your return, and any balance you might owe, and even sign up to receive notifications when the status of your account changes (such as when your return has been completely processed).
If you simply want to track your refund, visit the CRA website. To track your refund, you’ll need your Social Security number, your filing status listed on your return, and the exact dollar amount of your refund.
Filing your taxes can be a drag, but it’s a necessary part of the personal-finance journey. And if you’re scrambling to meet the tax deadline, don’t fret, as there are many services that can help make the process a bit simpler. But to avoid the same frenzy next year, setting up an organized system for your tax documents can make next year’s tax filing a breeze.
Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.