Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.
April 30, 2020.
At least that’s the deadline for most people. In addition to Canada Day, there is another, somewhat less celebratory date on the calendar that every Canadian adult should know by heart — April 30, aka, oh *#%$ it’s tax deadline day. Well, it usually is, although the government pushed back the deadline to June 1st, 2020 due to the COVID-19 pandemic.
But the tax deadline isn’t all bad news — you could say it’s one of the biggest annual investment deals in Canada. That’s because when you open an RRSP and contribute some dollars to it, that money is deducted from your gross income. In other words, your current tax bill is lowered (lucky you!) Of course, you’ll still have to pay tax on that income when you retire. However, there’s one major advantage — when you retire your tax rate will likely be lower than it is now, as you’ll probably be earning less income.
Observance of tax deadline day lacks the delicious grilled meats and fireworks of Canada Day, but it does make one truly appreciate the arrival of May 1 — the day that marks a full year before tax deadline day rolls around again. (If the due date falls on a weekend, you have until the following Monday to postmark your tax returns or submit electronically via Netfile.)
If you, your spouse, or your common law partner are one of those self-employed gig economy types, the CRA will allow you to file your returns on or before June 15, but it’s crucial that you pay any tax balance you’re carrying from the previous year. The CRA loves to get your money, so they’ll take it in pretty much any form imaginable — credit or debit cards, cash, or a debit from your financial institution. But make sure to pay your tax bill by April 30 or get ready for the CRA’s late fees. Trust us, it’s not worth it.
The easiest, most cost-effective way to take advantage of the tax savings that come along with an RRSP is to open a Wealthsimple RRSP. It takes just a matter of minutes and we offer state-of-the-art technology, low fees and friendly advice — get started investing before the tax deadline.