Tax season is fast approaching and it is easy to become overwhelmed with information regarding what you can and cannot claim when filing your personal return. If you’re like many Canadians who have obtained a payday loan, your main question may be, “What does my payday loan mean for my personal taxes?”
Does a payday loan affect my personal taxes?
A payday loan is similar to a personal loan, in that you pay interest on the amount owing. Whether you borrow from a payday loan service such as Speedy Cash or banking institution, you don’t own that money – it remains the property of the lender. Since you are not earning income on the interest, you do not have to claim it on your personal taxes. So, to answer the question, “What does my payday loan mean for my personal taxes?” the answer is simply, nothing!
Can a payday loan help my taxes?
While payday loans have a neutral affect on your personal tax return, you can – however – use a payday loan to pay any outstanding personal taxes you may owe. This way you can avoid interest being charged by the Canada Revenue Agency on amounts owing. A payday loan is a stress-free solution to getting back into the government’s good graces.
Don’t forget that taxes are due April 30. If personal taxes are filed late, there is a penalty of 5% on your 2019 balance owing, plus an additional 1% of your balance owing for each full month your return is late, to a maximum of 12 months. Of course – it’s best to get your personal tax return submitted on time so you can keep your hard-earned money where it best belongs – in your pocket!
Why should I file my taxes?
Some income sources, for example, Child Tax, CPP and OAS, require that you file your tax return each year in order to continue receiving the benefits. Speedy Cash is unable to loan on these income streams if they have been discontinued, which can have a negative effect on cash flow. But we are here to help!
A SPEEDY tax preparation service!
In British Columbia and Alberta, Speedy Cash is excited to announce that we will be offering Tax Preparation services! With our easy drop-off service, we encourage you to drop off your paperwork at one of our locations and let us handle the rest. Our seasoned Speedy tax experts will work on your behalf to ensure you get the most of your tax return this year. If we have any questions, we’ll simply call you for clarification.
What’s better, is if you drop off your tax paperwork before 1:00 PM PST, we guarantee same-day service! Now that’s quick and convenient! Before you come in, head over to our Tax Preparation information page to view a checklist of everything you need to bring with you to get your tax return completed on time.
