June:  Tax Filing and Investment Planning Milestones

Ruth Horst

Most of the personal tax returns have been filed for 2024 but we need to continue to be aware of important dates related to tax filing and investment planning. Many tax filers moan at tax time and wish they had made other decisions throughout the year but the incentive to change often disappears once the tax returns are filed. Tax and investment planning is a year-round process and we need to be mindful of important dates.

Unique Filing Deadlines: Certain tax returns have later due dates but it is important to understand that the tax payable is still due on April 30^th, however, late-filing penalties are not levied until after the due dates. Any returns required to be filed with the T1, such as the T1135 (Foreign Income Verification Statements) are due on the same date that the tax return is due.

June 2^nd – T1 filers with Capital Gains (and their spouses)

June 16^th – T1 Proprietorships (and their spouses)

June 1^st – 30^th - Final Returns for Deceased Individuals (deceased Dec 1^st – 31^st)

June 30^th - RC243 TFSA Return with RC243 SCH-A for Excess TFSA contributions

June 30^th – RC728 FHSA Return with RC728 SCH-A for Excess FHSA contributions

June 30^th - NR Section 216 (non-residents – rental income or timber royalties)

June 30^th – NR Section 217 (non-residents – withholding on Canadian-source income)

Instalment Payments for Individuals: individuals who have net tax owing of more than $3,000 ($1,800 in Quebec) on their last T1 and had net tax owing in the prior year in excess of these thresholds are required to make quarterly instalments. CRA will issue reminder letters for these payments which are due March 15^th, June 15^th, September 15^th, and December 15^th. Failure to remit these instalments or remit them late may result in additional penalties and interest.

Income Tested Benefits: June marks the final payments of social benefits and credits that are based on the 2023 tax return. The amount of the benefits will change, disappear, or appear in July.

June 10^th – Ontario Trillium Benefit (OTB)
June 20^th – Canada Child Benefit (CCB)

June 26^th – Guaranteed Income Supplement (GIS)

Canada Disability Benefit (CBD): A new monthly Disability Benefit is being launched in July for working-age Canadians with a disability. In order to qualify the individual must have Disability Tax Certificate on file with CRA, be between the ages of 16 and 64, and have filed an income tax return for 2024. The benefit is income-tested with a maximum benefit of $200 per month. Applications will be accepted during the month of June. The first payment date will be July 15^th.

Snowbirds and US Citizens & Green Card Holders: The rules are changes but the basic due dates still remain. If you are considered a “US Person” whether or not you actually spend any time in the United States is not relevant. The requirement to file Tax Return is primarily based on Citizenship and not necessarily on residency. The IRS may require a tax return (Form 1040) and perhaps an FBAR from you. The landscape is changing quickly in the United States and it is important to stay apprised of any changes.

June 15^th: US 1040 is due (tax payable as of April 15^th) or an Extension filed (Form 4868)

June 15^th: Form 8840 due – Closer Connection Exception Statement for Aliens (for Snowbirds)

Knowledge Bureau VIP Affinity Program: June 1^st is when the Annual Designate Relicensing begins and June 15^th is when Summer School Registrations for the DMA Programs opens.

The Bottom Line: As we approach the half year mark on our calendars, it is time to review what we have done and how we are progressing towards our financial goals. We need to determine if it is the time to stay the course or to pivot and explore our options. Schedule an appointment with your Financial Planner, Real Wealth Manager or Tax Consultant to help you navigate the path.