Defer Paying Your Tax Bill
Those generous COVID-19 benefits last year were sent with little, or no, tax deducted at source. This means completing their return might yield a nasty bill for some people.
To soothe this scary thought, the federal government is offering you the chance to defer paying your taxes for up to a full year. Canada Revenue Agency’s ‘targeted interest relief program’ will automatically waive the interest on what you owe for 2020, if you received a Covid-related benefit. You must also file your return, and have income below $75,000, to be eligible.
Ask your Financial Advisor to help you plan for this repayment. Also, consider how you might use this program to your benefit. While you’re saving up, make the most of this unexpected opportunity. Defer your debt until the last minute and invest the funds. Make that money work hard for you ̶ and not for the government.