Normally, at this time of year, we would be reminding Canadians to have their income taxes filed by April 30. However, 2020 is a very different year — with a very different income tax deadline.

Due to the novel coronavirus (COVID-19) pandemic, the Canadian government has extended the income tax deadline for the 2019/2020 year.

Here’s what that means for you.

New Income Tax Deadlines

The new deadlines for 2020 are:

For individuals:

• Filing date for 2019 tax year: June 1, 2020 (extended from April 30, 2020)
• Payment date for 2019 tax year: September 1, 2020 (extended from April 30, 2020)

For self-employed:

• Self-employed tax filing deadline: June 15, 2020 (unchanged)
• Self-employed payment date for 2019 tax year: September 1, 2020 (extended from April 30)

For corporations:

• Filing date for current tax year: June 1, 2020 (applies to corporations that would otherwise have a filing due date after March 18 and before June 1, 2020)
• Payment date for current tax year: September 1, 2020 (applies to balances and instalments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, 2020)

See the full list of updated filing deadlines and payment dates on the Canada Revenue Agency (CRA) website: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html

Late-Filing Penalties and Interest

While the income tax deadlines and payment dates are set, the CRA has also offered some relief for those who are unable to file a return or make a payment by the deadlines because of COVID-19. Taxpayers can request the cancellation of penalty and interest charged to their account, the CRA says.

“Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met,” the CRA states.

What Does This Mean for You?

• More time to file your income tax return and make your payment.
• However, the return will still need to be filed on time.
• Although taxpayers can request the cancellation of penalties and interest charged to their accounts, that is only if you meet the deadlines — so don’t delay filing.
• If you owe, the principal amount will still need to be paid by September 1. If you cannot pay, start thinking about your options sooner rather than later.

Although the income tax deadlines have been extended and there is some relief available, taxes owed have not been waived. This means that you will need to pay what you owe in full — ideally by the payment deadline of September 1.

If you will not be able to pay by September 1, don’t ignore the situation. Instead, take action now by seeking out debt help. A debt counsellor, like DebtCare Canada, will help you make a plan to deal with your income tax during the COVID-19 pandemic and beyond.

We can also help resolve a CRA back tax problem if you are sitting on past due returns that weren’t filed because you owe and can’t pay.

Don’t delay. Get in touch today before the Canadian income tax deadline to go over your options. We are fully functional 100% remotely during the COVID-19 pandemic. Call or text “Help” to 1-888-890-0888 or visit www.debtcare.ca.