Tax Tips

With the new year upon us there are numerous commitments and dates we all have to remember. Among them are many government tax filing and payment dates we need to keep track of, especially if we want to avoid any unwanted fees and penalties. Here are a few common tax dates and deadlines we as tax payers should be aware of.

Important Tax Dates to Remember: 

January 5, 2012

• If you’re eligible, you should expect to receive your first 2012 quarterly GST/HST credit installment on January 5, 2012. The other GST/HST  installments are paid on the 5th of April, July, and October.

March 1, 2012:

• March 1, 2012 is the final deadline to contribute to your Registered Retirement Savings Plan (RRSP) for the 2011 tax year. Contributing to your RRSP each year can be very beneficial in the short and long-term. In the short-term you will receive a larger tax refund, and in the long-term you can benefit from growing your retirement savings tax-free.

 April 30, 2012

• April 30, 2012 is the deadline to file your 2011 personal Income tax return and pay any taxes owing. File and pay early to avoid any unwanted interest or penalties. Also, for business owners GST/HST amount owing are due on this date as well.

June 15,2012

• If you run a business, June 15, 2012 is the deadline to file your 2011 personal Income tax and GST/HST  return.  However, if you owe any taxes or GST/HST they are still due on April 30, 2012.

June 30,2012

• If you have taxes owing on your 2011 Tax Free Savings Accounts (TFSA) you are required to file your TFSA return and remit any taxes owing by June 30, 2012.  However, if you do not owe any taxes you are not required to file a TFSA tax return.  A TFSA is another tax savings vehicle, similar to a RRSP, but generally utilized  for short-term savings.  If you are a Canadian resident over the age of 18 you can contribute up to $5,000 annual and enjoy tax-free investment income.

Quarterly Tax Installment 

• Again for business owners, you are typically required to make tax installment payments each quarter starting on March 15, June 15, September 15, and December 15. Employees are required to pay quarterly as well, but your employer will typically remit this on your behalf.

Canada Child Tax Benefit (CCTB) -  20th of each month   

• If you have a eligible child (or children), your Canada Child Tax Benefit payments are paid typically on the 20th of each month. However, if your entitlement is less than $240 you should receive a one-time payment on July 20th, 2012.

Universal Child Care Benefit (UCCB) - 20th of each month   

• If you have a child (or children) under the age of 6, your Universal Child Care Benefit payments are paid typically on the 20th of each month. The UUCB amount is approximately $100 per child under the age of 6.