The Tax Filing Deadline for Individual Tax Return (T1)

The Tax filing deadline for an Individual’s Personal Tax Return (T1) is usually April 30 the following year, but since April 30, 2023, falls on a Sunday the deadline to file the 2022 tax return is May 1, 2023. This means that the Canada Revenue Agency (CRA) must receive the individual’s tax return by or postmarked on May 1, 2023. This is then extended if the individual is self-employed to June 15, 2023, but the tax payment for any taxes owing is still May 1, 2023.

The T1 is used for individuals with tax payable to file their total income for all sources (this includes employment, interest, dividends, rental income, capital gains and any foreign income must also be declared in this return) earned and then deducts and credits or benefits that they are eligible for.

Another deadline many individuals should be aware of is March 1, 2023, which is the last day that contributes can be made to a Registered Retirement Savings Plan (RRSP). There are also payment plans and arrangements offered by CRA to any individuals who require flexibility in paying their taxes.

For Business Owners of Sole Proprietors or Partnerships whose fiscal year matches the calendar year the deadline for their returns is May 1, 2023. If the fiscal year of the business differs from the calendar year, then the deadline is 6 months after the end of the fiscal year. 

If the business is not incorporated, then the business income is reported along with the Personal T1 income tax return with a T2125 (Statement of Business or Professional Activities) tax form but if the business is incorporated then a T2 Corporate tax return is required. The Corporate T2 Tax Deadline is 6 months after the business’ Fiscal Year End. There is also the requirement to pay off any taxes owed from the previous taxation year by April 30.

The deadline for Self- Employed Individuals or Individuals with Small Businesses that are not incorporated is June 15, 2023, and then any payment that is required for CRA is due on May 2, 2023. If the business is incorporated, then any taxes that are owed are due two months after the corporate fiscal year-end.

Some individuals may choose the hire a Chartered Professional Accountant to help or complete their tax returns, but many also choose to do it themselves. If an individual’s financial situation is quite simple then doing their taxes without an accountant is not too difficult, especially with the many resources that the CRA provides and the available tax filling software. There are also volunteer programs offered by the CRA to complete tax returns for individuals with modest income or simple tax situations. On the other hand, if the individual owns a business, has a very complicated financial situation, or cannot handle to file their own taxes getting professional help from a CPA can be very useful. By hiring a tax accountant, the individual is able to save time and energy.