White Envelopes and MB Cheques
An interesting notice came out mid January from Service Canada:
Your mail from Service Canada
“Service Canada usually sends mail in beige envelopes. This year, however, we will be sending your 2022 CPP Canada Pension Plan and OAS Old Age Security T4 tax slips in a white envelope.
“All envelopes containing official documents from Service Canada will feature the “Canada” wordmark.”
This is a warning to watch for the envelopes from Service Canada. You may be expecting the beige or brown envelopes, but this year they will be white!
For our clients, we do not need the actual tax slips; we can access the digital government tax slips such as CPP, OAS, EI Employment Insurance, EIA Employment and Income Assistance. We can digitally access these tax slips as early as mid-February.
If you do not get your government tax slips by end of March, they may have an incorrect address. You can call Service Canada at 1.800.277.9914 to confirm or correct the address they have on file and get duplicate tax slips.
We remember a year ago when the mailing of the CPP and OAS tax slips was delayed for weeks because of a re-printing issue at Service Canada. That delayed many people from filing their taxes early. Again, a reminder, that for our clients, we do not need the tax slips, we can get the digital copy from Canada Revenue Agency directly. So if you are only missing your CPP and OAS tax slips, don’t wait for them if you are filing with us!
Manitoba Affordability Package
At the end of January, the government of Manitoba announced it will be sending out more cheques to Manitoba families and individuals with income under $175,000. The amounts are $225 for an individual and $375 for couples with or without children.
The cheques will start coming out early February and may take up to six weeks. The lower income spouse will receive the cheque.
If you have moved since you filed your 2021 taxes and did not notify CRA of your new address and do not have mail forwarding, you may need to contact Manitoba Taxation, but not until end of March.
Individual who have died since the announcement was made on January 26, 2023, the executor or legal representative will need to return the cheque to Manitoba taxation with a note including their date of death.
This new round of cheques will be issued to many more Manitobans compared to the last ones that were issued in October. Those payments were made to low-income seniors and families with children under 18.
Previous MB affordability payments
In October 2022, families with children under the age of 18 and household income of less than $175,000 in 2021 received a benefit cheque of $250 for the first child and $200 for each additional child.
And seniors, for households with a family income less than $40,000, received a $300 cheque in the mail if they rent or own a home and claimed the education property tax credit on their 2021 income tax return.
2022 tax filing deadlines
File your 2022 taxes as soon as you are ready and have all your tax slips and receipts compiled for deductions and credits.
The deadline to file your taxes (especially if you owe!) is May 1 2023. The normal filing deadline of April 30 falls on a Sunday, so we get an extra day. If you do have an amount owing, file on time even if you cannot pay it by May 1. The penalty for not filing on time is 5% of the amount you owe, plus 1% per month. And if this is not your first time filing late, the penalties may be double or more!
If you are expecting a refund, you do not need to file by May 1, but you may as well get your refund as soon as possible!
For those who are claiming business or farm income on their personal taxes (you are self-employed), you and your spouse have until June 15 2023 to file your taxes. However, if you owe, the amount owing should be paid by April 30 to avoid any interest.
The interest on unpaid taxes has increased from 6% to 8%! So, pay your taxes as quickly as possible even if you are paying CRA monthly or bi-weekly, it will reduce the overall interest cost if you pay as much as you can as early as you can.
Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact Ste Anne Tax Service at 204.422.6631 (phone or text!) or 36 Dawson Road in Ste Anne (near Co-op) or info@sataxes.ca