April 30, 2024 — Canada's tax deadline — has come and gone but that doesn't mean tax season is over for everyone.
So, what happens now if you haven't filed your taxes this year?
Here's everything you need to know when it comes to filing after the deadline from the Canada Revenue Agency and tax experts who spoke to Narcity about Canada's taxes.
File your taxes late
"Can I file taxes after April 30?"
"Can I file my taxes late?"
Those are some questions you might be asking yourself now and the answer is yes.
Even if you missed the deadline, you can still file your taxes.
But you'll be on the hook to pay money to the CRA if you owe taxes on your 2023 return.
Filing late costs you money because your return will be considered late and subjected to a late filing penalty and interest on any balance owing.
If you don't owe any taxes with your 2023 tax return, you don't have to pay a late penalty when you file.
You can file your own taxes by using certified tax software from TurboTax, H&R Block or Wealthsimple, just to name a few.
Certified NETFILE services are open for electronic filing until January 24, 2025.
You can get help from a professional like an accountant or a free tax clinic through the Community Volunteer Income Tax Program.
Keep your tax documents
Not only is it important to have all the documents you need when you're filing your taxes, but it's also important to keep documents related to your return after you file.
Stefanie Ricchio, a CPA and spokesperson for TurboTax Canada, said you should have your T slips and receipts — like for donations or contributions to RSPs, TFSAs and FHSAs — in order.
"That just is where a lot of the mistakes and the errors for most people happen," she noted. "Because sometimes they're kind of flying blind."
The CRA has recommended that you keep your supporting documents and income tax records for six years.
That's because the federal government might ask you to provide them later to support any claims you make.
Also, you should keep a copy of your return and any related notices of assessment or reassessment, the CRA said.
Since the CRA conducts tax audits that examine the records of taxpayers, having your documents in order can help you if you're selected because you filed late.
Pay taxes, late fees and interest
There is a penalty for late taxes in Canada.
Vittoratos and Ricchio both warned against filing late because of the interest you'll rack up in addition to late penalties.
The CRA will charge you compound daily interest on any unpaid amount owing for 2023 as of May 1, 2024.
That's because the deadline to file was also the deadline to pay your taxes on time.
"The interest rate is now 10% on your unpaid tax balance and that's significant," Ricchio noted.
However, the interest rate can change every three months so you could have to pay more the longer you wait to file.
"You will be subject to penalties and interest on the balance owing," Vittoratos said.
If you have a balance owing and don't file your income tax return on time, you'll be charged a late filing penalty along with interest.
The penalty is 5% of your balance owing when the return was required to be filed.
Plus, you have to pay an additional 1% for each full month your return is late up to a maximum of 12 months.
If you had a late filing penalty for 2020, 2021 or 2022 and filed your 2023 tax return late this year, the penalty for 2023 will be more.
It's 10% of your balance owed.
Then, you'll also be charged an additional 2% for each full month your return is late up to a maximum of 20 months.
If you can't afford to pay your tax-owning balance right away, especially if you have a hefty late filing penalty and a lot of interest, you can pay your debt over time.
After filing your tax return and finding out how much you owe, you can schedule a series of payments in your online CRA account using a pre-authorized debit agreement.
Or, you can call the CRA and set up a payment arrangement over the phone.
Look for a delayed tax refund
Gerry Vittoratos, a national tax specialist at UFile, told Narcity that there aren't any penalties or interest for filing late if you're getting a tax refund.
But that doesn't mean you should wait around to file your taxes.
You don't get money back from the government until you submit your tax return so late filing means your refund is delayed.
If you need the money, you will "miss the opportunity to put the refund to good use" by continuing to not file, Vittoratos noted.
Tax refunds are sent out by the CRA either as a direct deposit into your bank account or a cheque through the mail.
Look for delayed federal benefit payments
If you're eligible to get money from federal benefits, filing your tax return late can delay your payments.
Both Ricchio and Vittoratos noted that benefits like the Canada Child Benefit, Canada Carbon Rebate, GST/HST credit, Advanced Canada Workers Benefit and Guaranteed Income Supplement depend on your tax return.
"You delay your tax return, you can delay your payments," Ricchio said. "You can stop your payments."
"Delaying the filing of your tax return can impact and delay benefit payments from the government," Ricchio said.
Vittoratos mentioned that the government needs time to process your tax return and enrol you in any benefits and credits you're eligible to receive.
The CRA revealed that if you file after March 15, 2024, you can expect to get your Canada Carbon Rebate payment six to eight weeks after your tax return has been assessed.
If you keep delaying filing, benefits that are paying out in May, June, July and so on will be delayed too.
So, you might not get what you're entitled to from federal benefits on regular payment dates — potentially hundreds of dollars each month!
Benefits are paid through direct deposit or a cheque sent in the mail.
That's not all though.
If you're considering not filing your taxes at all this year, Vittoratos warned that you could end up being subject to criminal prosecution for tax evasion if you don't file your return.
This article's cover image was used for illustrative purposes only.
