Nearly 1 in 4 Canadians Have Yet to File Their Taxes with Only 6 Days Until the April 30 Deadline
Of which 72% plan to file before the deadline, 25% expect to miss the deadline, and 4% don't plan to file this year. H&R Block points to pitfalls of filing late or not filing and the year-round financial upside of filing.
CALGARY, AB, April 25, 2024 /CNW/ - Around 23% of Canadians (7 million) have yet to file their taxes with less than a week to go before the income tax filing deadline, according to a new survey commissioned by H&R Block Canada. Around 71% of those that have not yet filed plan to do so before the April 30 deadline; however, a whopping 25% say they'll miss the deadline, entirely. The remaining 4% don't plan to file at all this year. H&R Block's survey reveals that there are two key driving forces around why Canadians have not yet filed – fear of owing money, or simply not prioritizing it.
Among those Canadians that plan to file before the deadline, 63% say they just haven't got around to it yet; meanwhile 9% (nearly 1 in 10 Canadians) say they're procrastinating as they're worried they owe money.
Of those that say they'll miss the deadline, 22% say it's because they just haven't got around to it, while 3% say it's because they have procrastinated out of concern for owing money.
Of the 4% of Canadians that say they don't plan to file their taxes for 2023, it's evenly split between those that say it's because it's not a priority for them and those that say they're avoiding filing as they're worried they owe money.
"The Canada Revenue Agency reports that every year around 10% of Canadians fail to file their taxes, but we're seeing an increase in delayed filing this year, and many who anticipate they will miss the filing deadline, altogether," said Yannick Lemay, Tax Expert, H&R Block Canada. "We know that for some people the fear of owing money is a big contributing factor, although the vast majority of people that have filed so far have received a refund. Our message to all Canadians is to file your taxes before the April 30 deadline. Avoiding filing is never the answer as you may end up owing more money through late-filing penalties and fees – and you may be pleasantly surprised by the tax credits and benefits you're entitled to."
Canadians may be making tax assumptions without fully understanding the applicable benefits and credits: Only 18% of Canadians say they have a true understanding of the tax credits and benefits they may be entitled to. By avoiding or procrastinating filing your taxes, you risk missing money you may otherwise be entitled to. Many Canadians could be pleasantly surprised in getting a refund or year-round benefits (GST, Canada Carbon Rebate, Child Tax Benefit, etc.) that offset any amount owed.
Repercussions of filing after the April 30 deadline: Filing the 2023 tax return late could cost Canadians more. For those who filed any of their past 3 years of tax returns late and received demand letters from the CRA, you could be subject to a 10% late filing penalty on what you owe (rather than the standard 5%) and an additional 2% (rather than the standard 1%) every month for a year until you file and pay.
Risk of missing out on putting money back in your pocket year-round: It's important to remember that there's a huge upside to filing taxes. Beyond the hundreds of tax benefits and credits that are available, many Canadians aren't aware that even if you have limited or no income, filing taxes provides access to essential federal and provincial government tax credits and programs.
Year-round benefits Canadians can access through filing income taxes: Federal and provincial governments offer a number of significant benefits that you can only access if you have filed a current income tax return. This includes the GST/HST credit, Employment Insurance, the Canada Child Benefit, the Canada Carbon Rebate, disability tax credits, the Canada Workers Benefit, and many more. Canadians must also file a current tax return to apply for affordable housing.
Options if you owe but don't have the funds to cover it. If it's confirmed you owe money but you might not have the means to make the full payment, be proactive in speaking with your tax expert about how best to approach the Canada Revenue Agency (CRA) and negotiate a payment plan or instalments that can work for you.
These findings are from a survey conducted by H&R Block from April 22 -24, 2024, among a representative sample of 1,506 Canadians. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.
A trusted partner of Canadians for 60 years, H&R Block Canada is Canada's tax leader. Serving almost 1,000 locations across Canada, H&R Block's team of Tax Experts use the latest in technological advances combined with real-world expertise to help people file taxes in office, through drop off service, upload their documents remotely, or use do-it-yourself Tax Software. H&R Block Canada can support in the preparation of personal, small business, corporate, U.S., rental, and estate taxes. H&R Block's comprehensive education program, Tax Academy, trains new experts and ensures our Tax Experts continually update their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK.
SOURCE H&R Block Canada Inc.
Amanda Federchuk, H&R Block (c/o Ketchum), 416-505-0517, [email protected]
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