Basics, Business Income, Self-Employed, Tax Basics, Tips & Advice

Tax Tip: Is There a Filing Extension if I’m Self-Employed?

One of the most common questions asked at tax time relates to self-employed income and what the impact is on filing taxes at year end.  It’s a fairly lengthy explanation, how it all plays out, however, the end result is the most important factor to consider.

Earning any self-employment income means that you have to file as self-employed.  Even if you earn $250,000 from your “regular” job, and receive a T4 for that income, and only earn $300 as a ride-share driver, a food courier, a freelancer, or due to a side gig.

The next part to this question surrounds the filing deadline for self-employed Canadians, and that deadline becomes June 17th, 2019.  Notice the emphasis on the word, “filing“.  June 17th, 2019 is the date that the CRA must receive a tax return from a Canadian who has earned some (or all) self-employed income.  The date that taxes owing are due to the CRA, however, is April 30th, 2019, which means if there are taxes owing – which is common due to the CPP that self-employed Canadians must pay – they must be paid to the CRA by the 30th or there will be interest.

Recap: The Canada Revenue Agency gives people who are self-employed until June 15th (June 17th for 2019 because the 15th is a Saturday) to file their income tax returns. This same extension also applies to spouses of anyone who is self-employed. However, if you have a balance owing for the tax year, this money has to be paid by April 30. CRA charges interest on any money owed after April 30 regardless of when your return is due.

So is there an extension?  Sort of. Make sure you don’t use it unless you do not owe!