First, the important tax dates to mark in your calendar. The deadline for individuals to file their tax returns is usually on April 30 every year. However, since that date falls on a Sunday in 2023, the deadline is May 1, 2023.
If you or your spouse or common-law partner are self-employed, your submission deadline is June 15, 2023, but if you owe any tax, you have to pay it by May 1, 2023.
Most sole proprietors or partnerships also have a May 1, 2023 deadline for their returns, unless their fiscal year doesn’t follow the traditional calendar year. Then their deadline is six months after the end of their fiscal year.
If you’re wondering if and why you should file your taxes every year, we asked Certified Financial Planner Liz Schieck, from the New School of Finance, about that. Apart from it being the law and to avoid paying late penalties, she says you can benefit from some good stuff when you file.
“Your income tax filing is what will determine your eligibility for various tax credits like the Canada Child Benefit payments, or the GST/HST credit or Trillium benefit, and also newer tax credits like the Climate Action Incentive payment,” she says. “Also, typically you need to show your Notice of Assessment to become eligible for things like daycare subsidies, or to qualify for a mortgage if you’re trying to buy a house.”
Now, let’s look at the new tax credits.
What is the Canada workers benefit?
The Canada workers benefit (CWB) is a refundable tax credit that helps low-income working families and individuals. There are two parts to the credit:
- The basic amount
- A disability supplement (if you qualify)
What qualifies as “low income” depends on where you are in Canada and your net income for 2022. The Canada Revenue Agency (CRA) outlines several charts to determine that, but here are the net income amount qualifications, excluding Quebec, Nunavut and Alberta: