Austen Financial Consultants
18 Trailend Drive E1G 5W1 Moncton, NB, Canada

Want to avoid an audit? Here are tips from Patricia Lovett-Reid: 1. You have to file. Just do it. An incomplete return is better than no return. They will ask for further clarification or receipts and the request can't be ignored. If you do, an audit can occur and the claim can be denied completely. 2. When it comes to claims there may be a tendency to stretch the truth. For example, claiming a $5,000 expense on $25,000 in sales or high mileage claims in a year when few h...Continue reading

Something to remind you to get your tax information assembled and to me...

Introducing a simplified process for claiming the home office expenses for Canadians working from home due to the COVID-19 pandemic From: Canada Revenue Agency News release December 15, 2020 Ottawa, Ontario Canada Revenue Agency... This year has been filled with unprecedented challenges due to the COVID-19 pandemic. Many Canadians unexpectedly had to work from home which resulted in millions of Canadians setting up their work space in their kitchens, bedrooms and living rooms. In response, the Honourable Diane Lebouthillier, Minister of National Revenue, provided today additional details on how the Canada Revenue Agency (CRA) has made the home office expenses deduction available to more Canadians, and simplified the way employees can claim these expenses on their personal income tax return for the 2020 tax year. Employees with larger claims for home office expenses can still choose to use the existing detailed method to calculate their home office expenses deduction. Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice. A new temporary flat rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19 up to a maximum of $400. Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer. To simplify the process for employees choosing the detailed method, the CRA launched today simplified forms (Form T2200S and Form T777S) and a calculator designed specifically to assist with the calculation of eligible home office expenses. For more information on working from home expenses go to Canada.ca/cra-home-workspace-expenses.

Social Benefits Repayment (T1-CLAW) The social benefits repayment form has been modified to include the Canada Recovery Benefit (CRB) repayment calculation for situations where the net income of individuals is over $38,000. The repayable amount is updated to lines... 23500 and 42200 of the T1 return. The CRB amount covered by this measure is indicated in box 202 of the T4A slip. The repayable amount corresponds to $0.50 of the CRB for every dollar of net income earned above $38,000. No amount is repayable if the net income is $38,000 or less. The net income used to calculate this repayment does not take the following into account: the deduction for split income; the capital gain from mortgage foreclosures and conditional sales repossessions; the Universal Child Care Benefit (UCCB) received or repaid; and the registered disability savings plan (RDSP) received or repaid. However, it includes: the payments received as part of the Canada Emergency Response Benefit (CERB); the payments received as part of the Canada Emergency Student Benefit (CESB); the payments received as part of the Canada Emergency Student Benefit (CESB) for eligible students with disabilities or those with children or other dependents; the provincial/territorial COVID-19 financial assistance payments; the Canada Recovery Sickness Benefit (CRSB); and the Canada Recovery Caregiving Benefit (CRCB). See more

T777S, Statement of Employment Expenses for Working at Home Due to COVID-19 (T777) Form T777S is accessible via Form T777. To complete Form T777S, the answer to the question Do you want to complete Form T777S (Statement of employment expenses for... working at home due to COVID-19)? must be Yes. Otherwise, the standard Form T777 will be displayed. The Canada Revenue Agency has introduced a temporary flat rate method to calculate home office expenses for 2020 for employees who worked from home in 2020 due to COVID-19. If this method is used, the employer is not required to complete Form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, and employees are not required to keep documents to support their claim. If this method is not used, the employer must complete Form T2200S and employees must keep their supporting documents. Form T777S applies to taxpayers who want to claim office expenses incurred to earn salary or commission income. It does not apply to taxpayers who are claiming employed tradesperson’s and apprentice mechanic’s tools expenses, employees working in forestry operations expenses and employed artists. It does not apply either to taxpayers who are claiming motor vehicle expenses or any capital cost allowance (CCA). The following list includes common home office expenses. For additional home office expenses that taxpayers can claim, go to canada.ca/cra-home-workspace-expenses. rent paid for a house or apartment where the taxpayer lives electricity, water, heat or the utilities portion of condominium fees maintenance (minor repairs, cleaning supplies, light bulbs, paint, etc.) home Internet access fees supplies (stationery items, pens, folders, sticky notes, postage, toner, ink cartridge, etc.) employment use of a basic cell phone service plan long distance calls for employment purposes Employees who earn commission income can also claim the following: property taxes home insurance lease of a cell phone, computer, laptop, tablet, fax machine, etc. that reasonably relate to earning commission income See more

TAX INFO ON RELIEF PAYMENTS Since the beginning of the COVID-19 pandemic, business owners are facing many financial challenges that can result in ceasing their business operation. As a relief, CRA implemented many emergency response programs to help self-employed, small, and large business owners. Support For Self-Employed Canada Emergency Response Benefit (CERB):...Continue reading

Our family wishes everyone a healthy and wonderful Christmas or a Happy Holiday Season. Please stay safe and enjoy your family throughout the season. Tony & Tish Austen.

Welcome to the fall....

Welcome to the fall....

Canada Emergency Response Benefit (CERB) Extra 8 weeks available CERB extended from 16 weeks to 24 weeks for workers who: stopped working due to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or... have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020. Only apply for the CERB through either Service Canada or the Canada Revenue Agency (CRA) not both. You may be eligible for support via other programs as well. Answer some questions to find financial help during COVID-19. The Canada Emergency Response Benefit (CERB) gives financial support to employed and self-employed Canadians who are directly affected by COVID-19. If you are eligible, you can receive $2,000 for a 4-week period (the same as $500 a week). On this page Who is eligible How to apply Keep getting your payments Sending your CERB payment back Contact us about your application Get help applying Questions about the CERB Who is eligible The Benefit is available to workers: Residing in Canada, who are at least 15 years old; Who has stopped working because of reasons related to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020; Who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and, Who have not quit their job voluntarily. When submitting your first claim, you cannot have earned more than $1,000 in employment and/or self-employment income for 14 or more consecutive days within the four-week benefit period of your claim. When submitting subsequent claims, you cannot have earned more than $1,000 in employment and/or self-employment income for the entire four-week benefit period of your new claim. Note: Federally regulated workers taking the new leave related to COVID-19 may be eligible for this benefit. For students who are not eligible for the CERB Post-secondary and graduating high school students may be eligible for the Canada Emergency Student Benefit. Apply for the Canada Emergency Student Benefit (CESB) Determine if you are eligible If you are unsure about your eligibility, please look at the following scenarios and choose the one that best describes your situation. Expectant mother/parent New mother/parent Caring for a family member(s) Change in job status/income Canadian abroad Unable to work/unemployed Student Senior/retired person Self-employed/independent contractor Previously received EI benefits (exhausted) How to apply To deliver payments to Canadians in a fast and easy way, the CERB is being jointly delivered by Service Canada and the Canada Revenue Agency.

One-time payment support for Canadians living with disabilities The Government of Canada has announced a one-time payment of $600 to help persons living with disabilities, in recognition of some of the extraordinary expenses they have encountered during the COVID-19 pandemic. Individuals who are determined to be eligible for the disability tax credit (DTC) or certain other disability-related benefit programs, may be entitled to receive the payment. ... Canadians living with disabilities who are eligible for the DTC but who have not yet applied will have until September 25, 2020, to do so. For more information on how to apply for the DTC, please visit http://www.canada.ca/disability-tax-credit. Recipients of the payment are encouraged to make sure their address and banking information is up to date in order to receive prompt payment. For callers who need help with changing their address, updating direct deposit, accessing My Account, or questions related to the DTC or their application, they can call CRA’s Individual Enquiries Line at 1-800-959-8281 (English) and 1-800-959-7383 (French) between 9:00 a.m. to 5:00 p.m. (local time) Monday to Friday. If you want to know more about the One-time payment support for Canadians living with disabilities, please visit: https://www.canada.ca//one-time-payment-persons-disabiliti

In response to the coronavirus pandemic and the resultant job losses and financial uncertainty for Canadians countrywide, the federal government announced the Canada Emergency Response Benefit (CERB) to help those affected tide over the next few months. What is the CERB? The CERB is a taxable government payment meant to temporarily help those grappling with job loss or other circumstances that have resulted in the sudden loss of income due to the COVID-19 pandemic....Continue reading

The COVID-19 job loss action plan The COVID-19 pandemic has been challenging for all of us, many of us are facing never-before-seen financial challenges, businesses have been forced to close down and workers are being laid off. If you’ve lost your job, we’ve put together an action plan below that could help you through this challenging time. We’ll continue to update this list as the situation evolves. 1. Stay calm and stay cautious ...Continue reading