If you were running an unincorporated business in Canada, (a sole proprietorship or partnership), when April 30th rolled around you probably just shrugged your shoulders and mentally congratulated yourself on having an extra month and a half to get your income tax return filed.
But now that deadline is fast approaching.
Sole proprietors, partners, self-employed – basically anyone engaged in a business that is not an incorporated business – have to file their income tax by June 15th, 2013.
Normally, the due date for unincorporated businesses to file their income tax would be June 15th, but when a tax due date falls on a Saturday, a Sunday, or a holiday recognized by the Canada Revenue Agency, (CRA), they consider your return to have been filed on time if they receive it on the next business day, which in this case, because June 15th is a Saturday, gives you until Monday, June 17th to get your income tax filed.
Your Filing Options
This year, for the first time, the CRA did not send out paper income tax packages to everyone. (See Goodbye Paper Tax Return!)
You can still pick up paper T1 income tax returns from income tax centers and post offices, fill them out and mail them in if you wish.
The fast and easy option, though, is to NETFILE your tax return. As you see in Taking the Fear out of Tax Filing – By Using TurboTax and NETFILE, when you’re using CRA certified tax software such as TurboTax, sending your completed tax return directly to the CRA is quick and secure – and the fastest way to get your tax refund (in about eight days, according to the CRA).
You may also take your completed T1 tax return directly to a Canada Revenue Agency tax centre.
(Note that TELEFILE has been discontinued this year.)
Tax Tip for Sole Proprietors: Don’t forget to claim the Tradesperson Tools Deduction if you’re eligible.
Remember, though, that the June 15th deadline applies only to filing your income tax.
Even if you are operating an unincorporated Canadian business, you still had to pay any outstanding balance owing on your income tax by April 30th.
What If You Discover You Owe Tax You Didn’t Know About?
First of all, you’ll want to pay off your outstanding balance as soon as possible. If you owe money, you will be charged interest every day after taxes were due, (a late-filing penalty of five percent of your balance owing plus one percent of your balance owing for each month your tax return is late for a maximum of 12 months), so the sooner you get it paid, the less expensive it will be for you.
If you can’t pay off what you owe, contact the Canada Revenue Agency to work out a payment plan.
Put TurboTax to Work for You
Feeling overwhelmed and wondering how you’re possibly going to fit in getting your income tax done by June 15th? Speed up the process by putting TurboTax to work for you.
TurboTax Home & Business simplifies completing your business income tax by using an enhanced business interview that guides you through the self-employment section of the tax return – and then lets you NETFILE your completed return from directly within the program.
Best of all, using TurboTax will ensure that you get all the business tax deductions you’re entitled to. And if the thought of being audited worries you, add the security of our Audit Defence service.
When June 15th arrives, you’ll be able to just shrug your shoulders and congratulate yourself on having your tax return already done and filed.