Tax Tip: Enjoy the Benefits of Filing On Time and Online

OTTAWA, ONTARIO--(Marketwired - May 5, 2015) -

Filing your income tax and benefit return and paying what you owe on time helps you avoid possible interest and penalty charges, and ensures that your benefits won't be delayed.

Important facts

• 2014 income tax and benefit returns filed by midnight on May 5, 2015, will not incur penalties or interest. If you or your spouse or common-law partner is self-employed, you have until midnight on June 15, 2015, to file your return.
• Any balance owing must be paid on or before May 5, 2015-even if your return is due on June 15, 2015.

What happens if I don't file on time?

When you file your yearly tax return, you are letting the Canada Revenue Agency (CRA) know your current tax situation.

Without that information, the CRA can't be sure that you are still eligible to receive certain benefit payments. If you don't file on time, your benefit and credit payments (for example, the Canada child tax benefit and the goods and services tax/harmonized sales tax credit) may be interrupted.

Also, if you have a balance owing and you don't file your return on time, we'll charge you a late-filing penalty. The penalty is 5% of your 2014 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2011, 2012, or 2013, your late-filing penalty for 2014 may be 10% of your 2014 balance owing, plus 2% of your 2014 balance owing for each full month that your return is late, to a maximum of 20 months.

In addition to the late-filing penalty, if you have a balance owing for 2014 you'll be charged compound daily interest beginning May 6, 2015, on any unpaid amounts owing for 2014.

Even if you can't pay all of your balance owing right away, you should still file your return on time. You can set-up a pre-authorized debit agreement using the My Account service, or call us at 1-888-863-8657 to make a payment arrangement. By filing on time, you'll avoid the late-filing penalty.

CRA online services make filing easier and getting your refund faster

The CRA's online services are fast, easy, and secure. You can use them to file your income tax and benefit return, make a payment, track your refund, receive your notice of assessment, and more. Did you know that the Government of Canada is switching to direct deposit for payments that it issues? This includes your tax refund and benefit payments. Sign up for direct deposit today! For more information, go to www.cra.gc.ca/getready.

Stay connected

To receive updates when new information is added to our website, you can:

Follow the CRA on Twitter - @CanRevAgency.

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You can also watch our tax-related videos on YouTube.