Common Questions When Filing Your Tax Return and Reporting Self-Employed Income
When is my year-end?
Self-employed individuals generally have to use a December 31st year-end.
When do I have to file my tax return?
If you or your spouse or common-law partner carried on a business during the year, your tax return must be filed on or before June 15th of the following year. Penalties are assessed based on the amount owing if the return is not filed by June 15th.
When do I have to pay the taxes?
If you self-employed, your taxes must be paid by April 30th, even though you are not yet required to file your tax return until June 15th. Interest will be calculated on any outstanding balance commencing May 1st.
What are installments?
Installments are partial payments made throughout the year of your taxes owing. If your taxes payable are more than $3,000 for the year and one of the previous two years, you will generally be required to make installment payments.
Instalment payments are due March 15th, June 15th, September 15th and December 15th.
There are three installment options. Please consult with your accountant tax advisor to determine the best option for you.
You can reduce the amount of installments you need to make by increasing the tax withheld from certain types of income, such as employment income, old age security and Canada Pension Plan benefits.
Failure to remit the required tax installments will result in penalties and interest.