To reduce financial hardship for Canadians due to the COVID-19 outbreak, the Canada Revenue Agency (CRA) has extended the deadline to file your 2019 tax return. This change may also help you to manage your personal finances during this challenging time.
If you moved to Canada in 2019, you need to file a tax return even if you lived in Canada for a short amount of time. The original tax deadline was April 30, 2020, and was extended to June 1, 2020.
However, if you think you will receive a tax refund, you may want to file your tax return before the deadline. That way, you will get your refund sooner and get the money that you may need during this time.
But if you do file your tax return and find out that you owe money, you will have more time to pay what you owe to the CRA. You can defer the amount that you owe until September 30, 2020. (The CRA extended the deadline to September 30 at the end of July, 2020). The tax deferrals are part of the federal government’s wider COVID-19 Economic Response Plan.
The Federal government will also be providing $27 billion in direct assistance to Canadian workers and families.
- You will not have to pay interest or penalties on any amount owing during this period
- The CRA will now accept electronic signatures on tax documents so that taxpayers and tax-preparers can avoid contact.
If you’re experiencing financial stress during this time, join our free webinar
Learn more about your tax obligations
To help you understand your tax obligations, you may be interested in the CRA’s free Outreach Program. You can get help with your taxes and learn how to get tax credits and benefits that you’re entitled to. Because of COVID-19, this program will now be available over the phone and online webinars.
We will keep you posted with additional updates that are important to newcomers in the coming days and weeks. In the meantime, stay healthy and positive during this difficult time.