File early, get paid sooner: Tax expert

Hey there, time traveller!
This article was published 25/02/2025 (206 days ago), so information in it may no longer be current.

Taxpayers expecting refunds should file as early as possible to access their money sooner and put it to good use, UFile Canada national tax specialist Gerry Vittoratos says.

He explained “time value of money” is important for all, adding a dollar today is worth more than a dollar a few weeks or months from now because the owner can do something productive with it.

“Canadians should use their refunds to pay down high-interest debt or invest, rather than leaving money sitting with the government,” Vittoratos told the Sun. “If you were owed money by someone, would you wait to collect it? So why wait for your refund? The government certainly wouldn’t give you the same courtesy if you owed them.”

For those who anticipate owing taxes, Vittoratos said filing early provides the crucial benefit of time. Knowing the amount due well in advance allows taxpayers to plan and allocate funds accordingly. Vittoratos warns that waiting until the deadline can lead to costly interest charges.

“The worst thing you can do is wait until April 30 to find out you owe. The moment you miss that payment deadline; the government starts charging interest daily. By filing early, you give yourself time to come up with a payment strategy,” he added.

While filing early comes with financial advantages, it also provides an opportunity to minimize mistakes. One of the most common errors Canadians make is failing to claim eligible deductions and credits, the expert added.

“The biggest mistake is omission — missing out on claims you’re entitled to because of poor record-keeping,” Vittoratos noted. “Medical expenses and charitable donations are among the most frequently overlooked deductions, often because taxpayers fail to archive receipts properly throughout the year.”

Taxes aren’t just a four-month task — they’re a year-round process, and if taxpayers should create a system to store receipts as they go, Vittoratos says “you’ll avoid leaving money on the table.”

Another error many taxpayers make is missing out on new government tax measures. While reading federal budget documents may not be appealing to most, Vittoratos encouraged Canadians to visit official government websites to stay informed about available credits and deductions.

“The government announces new tax measures every year, and they’re often applicable immediately. If you don’t check, you may miss out on new opportunities or fail to take advantage of credits that may soon be discontinued.”

Filing early also reduces the risk of fraud. The Canada Revenue Agency (CRA) has warned of rising tax scams, particularly identity theft where fraudsters file false returns under someone else’s name.

“By submitting your return early, you reduce the chance of someone fraudulently using your information. Additionally, using secure and authorized tax-filing software helps protect personal information from cyber threats.”

Prairie Mountain Health (PMH) stated that the Community Volunteer Income Tax Program (CVITP) offers a free service to help low-income individuals with simple tax situations complete and file their returns.

The health authority, in a press release issued Monday, noted that last year, residents in the PMH region who used CVITP received more than $10 million in benefits and refunds, with the average return for an individual client around $3,500. It added that in Brandon, 14 volunteers assisted clients with their returns, while 11 volunteers provided support in rural areas.

PMH explained that CVITP is a collaboration between community organizations and the Canada Revenue Agency, ensuring that seniors, newcomers, students and all low-income residents can access the benefits they are entitled to, including GST refunds, the Canada Child Benefit, Manitoba Rent Assist, Disability Tax Credits and Pharmacare deductibles. It encouraged those who qualify to take advantage of the program, with drop-off sites available in Brandon and across the PMH region having started up on Monday.

» aodutola@brandonsun.com

» X: @AbiolaOdutola