How to File Taxes Online In Canada 2022
This is a simple guide to help you get started filing taxes. I have been filing my own taxes since I was 18 and I’ve never had any problems with the CRA. I have full time employment and a small amount of side income. I use Turbotax for all my tax filing needs. I would recommend using this quick income tax calculator to get an idea if you will owe money or receive money this year. If you owe money, it’s even more important to file on time to avoid being charged interest.
When Can I File My Taxes For The 2021 Tax Year
The earliest date you can file you can file taxes is February 21, 2022. An advantage of filing early is that you will likely wiz past traffic and receive your return faster. Or if you owe money you will have time to send your payment.
The deadline to file taxes is May 2, 2022. This is also the deadline for making payments if you owe money.
If you do not pay your taxes by May 2, 2022 you start being charged interest May 3, 2022.
The deadline for RRSP contributions is before March 1, 2022
Contributing to your RRSP deducts money from your taxable income. You should receive a higher refund or owe less tax the more you contribute.
If you or your spouse or common law-partner are self-employed the deadline to file is June 15, 2022.
Should I Do My Own Taxes?
Things to consider
Did you have taxable investments?
Did you have rental income?
Did you have a business with employees?
Did your tax situation change ex. you had a kid, got married?
Do you have enough free time?
Did you skip filing taxes any years in the past?
Were you a student?
Were you on EI?
If you answered yes to any of these questions you may be better off hiring a profession accountant.
It’s not impossible to do your own taxes for these cases but it can be significantly more challenging. I did some work for Skip-the-dishes and I was able to figure out how to do my taxes with Turbotax but it’s a little more involved. I also filed taxes myself after being a student. One year I filed after being partially on EI.
When To Do Your Own Taxes
If your taxes are straightforward, there are lots of advantages to doing your own taxes:
You may quality for free versions of software like Turbotax.
You will gain a better understanding of how much of your paycheck goes to taxes. If you always receive a huge refund you can ask your employer to check if you are being taxed correctly. Over paying taxes means the government can earn interest on that money instead of you. If you owe money consistently you might need to ask your employer to take more off more tax in the future.
Here are questions to know if your tax return is straightforward:
Did you have the same employer all year and one T4?
Did earn interest in a regular savings account. Use a T5 form.
Did you contribute to RRSPs?
Did you contribute to TFSAs?
If you had the same job or jobs all year and/or invested in only registered accounts, Turbotax does a great job walking you through a simple straightforward tax return.
How to Start Doing Taxes
These are the steps to filing your taxes online with the CRA:
If you haven’t already setup up a NETFILE account.
Setup auto deposit through your tax return CRA account.
Create an account with Turbotax or Wealthsimple Tax.
Fill in tax info as the software walks you through.
To input your T4 into Turbotax or Wealthsimple tax all you need is to write the values in the numbered boxes on the T4 into the same number box in Turbotax or Wealthsimple tax (See sample T4 below).
If you are unsure of something visit the CRA website, call or ask customer support at Turbotax or Wealthsimple tax for help.
Review all your information before pressing file.
Ensure you have a confirmation that your taxes were filed.
Wait patiently for your return to appear in your bank account or if you owe money learn to pay the CRA here.
Sample T4
Takeaways
If you’re up for the challenge and interested in finances, start doing your own taxes today. As you become more comfortable with a filing simple tax return and your knowledge grows, you could keep doing your taxes as they become more complex. At some point you will have to decide if the money saved is worth the time you invest. Happy tax filing! If you receive a solid refund why not use it to invest. Learn how here.