Why should I file my taxes on time?

Filing your taxes on time is a crucial step towards financial stability and peace of mind. Timely tax filing helps you avoid costly penalties and interest charges, ensures you receive any refunds due promptly, and keeps you in good standing with the Canada Revenue Agency (CRA) or Revenu Québec. 

It also provides an opportunity to review your financial situation, identify potential deductions, and plan for the future. By staying on top of your tax responsibilities, you can reduce stress and focus on achieving your financial goals. 

The April 30th tax deadline is fast approaching, so here are some things to keep in mind about the importance of filing on time.

You’ll avoid paying interest or penalties.

If you file your taxes late and owe money, the CRA and Revenu Québec may charge you interest and penalties.

• Interest on your taxes owing grows daily starting the day after the deadline.
• Interest on penalties starts the day after your filing due date.

Late filing penalties are 5% on your tax owing, plus 1% for each full month your return is late, up to a maximum of 12 months.

The CRA will charge late-filing penalties and add interest to your unpaid taxes owing starting May 1, 2025.

If you’re planning on filing late because you’re worried you might owe taxes and can’t pay them right away, you should still file your return on time. This will ensure you don’t pay extra due to late-filing penalties.

You’ll continue to get your benefit payments on time.

Filing your taxes late can have significant consequences on your benefit payments. The CRA uses the information from your tax return to determine your eligibility for various benefits, such as the Canada Child Benefit, GST/HST credit, Canada Workers Benefit , and other provincial or territorial programs. Eligibility is assessed annually, so it’s important to ensure your tax returns are up to date. 

If you miss the tax filing deadline, your benefit payments may be delayed or even stopped until you file your return. Here are some payment dates that could be interrupted if you don’t file on time.

You’ll get your refund sooner – $2,132 on average.

If you’re eligible for a refund, filing late or not at all could mean leaving money on the table. Last year, the average refund claimed for H&R Block clients was $2,132*. 

The sooner you file, the sooner you’ll receive your refund as well as any credits you share with your spouse or dependants.

You might help protect your identity.

Tax identity theft happens when someone uses your personal information. They file a fake tax return to steal your refund, GST/HST credits, and other benefits. You might not know your personal information has been stolen until you try to file your return, and it’s rejected as a duplicate. 

Filing on time might mean not giving someone else a chance to use your information first. To learn more about how to protect yourself from tax identity theft, check out this blog: How can I protect myself from tax identity theft? 

When do I have to file my return?

The deadline to file your 2024 income tax return is April 30, 2025. If you’re self-employed your taxes are due on June 16, 2025. However, it's important to note that any amount due must still be paid by April 30, 2025. 

To avoid late-payment penalties, it's recommended that you prepare your tax return well in advance of April 30th if you have self-employment income.

If you and your spouse are preparing your returns together and only one of you is self-employed, you can still file both returns by June 16, 2025, as long as any balance owing is paid by April 30, 2025.

Is tax relief available?

Yes, tax relief is available in Canada through various programs designed to help taxpayers manage their financial obligations. Payment options can often be negotiated with the CRA, including partial payment plans or payment arrangement plans. 

The CRA offers taxpayer relief provisions that can cancel or waive penalties and interest in certain situations, such as extraordinary circumstances, financial hardship, or errors made by the CRA. 

If you owe taxes and can’t pay them right away, contact the CRA before they reach out to you. This will help you manage the situation better. If you need guidance on how to best approach this situation, H&R Block Tax Experts are here to help.