What if I get a slip AFTER I’ve already filed my taxes?
Every year, I have clients who have their taxes prepared before they have received all their slips (usually the ones that bring them to me in early February). A week or two later, they are back with a slip they received after I filed their taxes.
CRA processes adjustments at a much slower rate than tax returns. You could have a balance owing and you’ve paid it, but then an adjustment causes you to have a refund or you have another balance owing. CRA must issue you a cheque or you must send them another cheque…not to mention the $15 cost to file an adjustment! To avoid having to file an adjustment this year, make sure you are truly ready to file your tax return:
- Use the Readiness Checklist that I provide to make sure you have everything you need before filing your taxes.
- Do you have automatic monthly RRSP contributions? You may not get your January and February receipts until mid to late March – THESE CANNOT BE SAVED FOR Your 2022 Tax Return – contributions made in Jan & Feb 2022 must be claimed on your 2021 income tax return.
- Do you have interest-bearing accounts such as, savings, chequing, GIC, insurance policy dividends, Saving Bonds, dividends from a company you own shares in etc? Your will receive this slips only in Mid to Late March.
- Makes sure the deadlines have passed for your slip
- You could look through last year’s envelope to compare what you received this year.
- And last but not least, call or email me! I’ll be glad to take a look at last year’s return on the computer and let you know what you should have – it only takes a moment!
Whatever you do, do not simply file the slip away thinking you can claim in on your next year’s income tax return. CRA will automatically re-assess you later if you do this. However, should you fail to file a slip for 2 years in a 3-year period, you will also be assessed you a penalty equal to 10% of the amount that was not reported. For example, if you failed to file an RRSP withdrawal of $5,000, you would be assessed a federal penalty of $500 and a provincial penalty of $500 for a total of $1,000. This is non-negotiable. As long as you file any missing slips prior to April 30th, no penalties will be assessed. Even if you file them later – you will not be penalized – as long as you file them before CRA finds your unfiled slip.
Posted in: GENERAL INFORMATION ABOUT REVENUE CANADA