With the tax deadline approaching in Canada this spring, it’s time to start getting organized with your documents, according to tax expert Gerry Vittoratos from U-File. Vittoratos advises creating a dedicated folder, whether physical or virtual, to store all relevant documents throughout the tax year. He emphasizes the importance of including expenses like charitable or medical receipts to avoid common mistakes of omission.
While the official tax season in Canada has yet to begin, Vittoratos highlights the middle-class tax cut as a significant change this year. The federal government is reducing the first tax bracket rate, providing slight relief on taxable income up to $57,000. Despite the tax cut, taxpayers may not see a noticeable impact on their returns.
The tax deadline is set for Apr. 30 this year, and Vittoratos urges individuals to file early to secure refunds promptly. Filing on time is crucial for those who owe money to the government to avoid hefty penalties and interest charges.
Additionally, Canadians receiving the GST benefit can expect a one-time top-up payment this spring through the Canada Groceries and Essentials Benefit. This payment aims to assist low and modest-income individuals and families, with a substantial increase in the benefit value for the next five years.