Question 1

When Do I Have to File My Taxes?

Accepted Answer

You should file your taxes by April 30th, 2024, which is the deadline for most Canadians. However, if you or your spouse/common-law partner are self-employed, you have until June 15th, 2024. It's crucial to note that if you owe taxes, it's wise to file and pay by April 30th to avoid interest charges.

Question 2

What Happens if I File My Taxes After the Deadline?

Accepted Answer

Filing taxes late incurs a penalty of 5% of your 2023 balance owing, plus 1% of your balance for each full month your return is late, up to a maximum of 12 months. It's essential to file on time to avoid these penalties.

Question 3

If I File My Taxes and Forgot a Tax Deduction, Credit, or Made a Mistake, Is It Too Late?

Accepted Answer

No, it's not too late. You can make adjustments to your tax return even after filing. This ensures you claim all eligible deductions and credits accurately.

Question 4

Do I Have to Pay Taxes on My Cash Gigs & Tips?

Accepted Answer

Yes, any income earned, including cash gigs and tips, is subject to income tax. Failing to report this income constitutes tax evasion, which is illegal.

Question 5

Do I Have to Pay Taxes on My Side Hustle?

Accepted Answer

Yes, income from side hustles is taxable. It's essential to report all earnings to avoid penalties for tax evasion.

Question 6

Tax Evasion vs. Tax Avoidance: What's the Difference?

Accepted Answer

Tax evasion is illegal and involves not declaring true income or falsifying information on tax returns. Tax avoidance, while legal, involves minimizing taxes within the bounds of the law. NJ Accounting Consultants Inc. promotes tax planning, using legitimate methods to reduce taxes while adhering to legal principles.

Question 7

Tax Refund vs. Tax Return: Are They the Same Thing?

Accepted Answer

No, a tax refund is the money returned to you if you overpaid taxes, while a tax return refers to filing your taxes.

Question 8

How Long After I File Will I Get My Tax Return?

Accepted Answer

Electronically filed returns typically result in refunds within two weeks, while paper returns may take up to eight weeks.

Question 9

Tax Deductions vs. Tax Credits: What's the Difference?

Accepted Answer

Tax deductions reduce taxable income, while tax credits directly reduce the amount of tax owed.

Question 10

What Are Some Tax Credits I Should Know?

Accepted Answer

Some tax credits to be aware of include the home buyers' amount, donations and gifts, tuition, education, and textbook amounts, and interest paid on student loans.

Question 11

I Just Got Married, Do I Have to File a Joint Tax Return with My Spouse?

Accepted Answer

In Canada, you cannot file joint tax returns. Married or common-law couples file separately.

Question 12

What Are My Marital Status Options for Tax Purposes?

Accepted Answer

Options include married, living common-law, widowed, divorced, separated, or single. It's crucial to update your status with the CRA if it changes.

Question 13

Is There a Higher Chance I'll Get Audited by the CRA If I File Online?

Accepted Answer

No, the method of filing does not affect the likelihood of being audited. However, certain factors may increase audit risk, such as significant changes or inconsistencies in tax filings.

Question 14

Is TurboTax Worth It?

Accepted Answer

TurboTax and other tax software can be helpful for filing taxes, but whether it's worth it depends on individual preferences and needs.

Question 15

What if I Need Some Help While Doing My Taxes?

Accepted Answer

NJ Accounting Consultants Inc. offers personalized tax assistance and guidance to ensure clients accurately file their taxes. With experienced professionals and innovative tools, we're here to support you every step of the way.

Frequently asked questions