The new Canadian income tax filing deadline is coming up soon — on June 1, 2020.

Is your return ready to file?

Due to COVID-19, the income tax filing deadline was moved from the usual April 30 to June 1.

If you owe, the deadline to pay has been moved to September 1, 2020.

But can you get the money together in that time, or do you need extra assistance?

Here’s everything you need to know.

A) Don’t Delay Filing

First, don’t delay filing your return. Even if you have lost your income due to COVID-19, you still need to file. If you miss the June 1 deadline and will owe, you may be charged a late-filing fee, which will only add to your final balance.

It’s in your best interest to file by the June 1 deadline. If you will owe and can’t pay, read on…

B)  If You Need To, Use the Three-Month Deferral Period to Gather Funds

As we mentioned, this year you have three months to actually pay for what you owe. The deadline to pay your owed income tax return is September 1.

Unlike in previous years, you will not be charged interest between the filing deadline of June 1 and the new payment deadline of September 1. So, if you need more time to collect what you owe, this break can give you that.

But be sure that you will have the funds by September 1 (or sooner). If you can’t pay, you will be charged interest after September 1. Plus, if you don’t pay you will no longer receive any GST/HST credits or Canada child benefit payments from October 2020 forward and you’ll have to repay the estimated amounts that were issued to you starting in July 2020.

If you won’t be able to pay, read on.

C)  If You Know You Can’t Pay, Explore Your Options

If you will not be able to pay by September 1, you need to act now.

A debt consultant (like DebtCare Canada) will review your situation to help you find the best option for you. This might include:

• Cleaning up other debts to free up money for your tax payment.
• Accessing home equity to pay what you owe.
• Filing for insolvency (bankruptcy or a consumer proposal).

DebtCare also provides access to one of the only programs that can resolve a CRA back tax problem.

In this program:

• Your principal tax debt can often be reduced.
• Interest and penalties immediately stop.
• You are able to make a single monthly payment.

Don’t wait to explore your choices. The sooner you start, the more options you will have.

At DebtCare Canada, we offer a free consultation to deal with tax problems. Tax evasion is illegal. Get ahead of your tax issues.

Contact us by calling or texting 1-888-890-0888 or visit www.debtcare.ca to learn more.