Aysha Haseen, CPA, CMA
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CRA late filing penalties and one year relief program As stated on its website, the CRA intends to charge taxpayers a late-filing penalty if they file their 2020 tax return after April 30, 2021 and there is unpaid tax at that time. The penalty is five per cent of the balance owing for 2020, plus one per cent of the balance owing for each full month the return was filed after April 30, 2021, to a maximum of 12 months. A higher penalty applies if a return was late-filed in the prior three years. Interest will also be charged on unpaid amounts subject to the one-year relief program available to certain taxpayers. As the website for that program states, this relief does not apply to late-filing penalties. We understand that the penalty and interest assessment process is automated for the most part.

2020 taxes Deadlines Filing and payment due dates for taxes, contributions, instalment payments, and any amounts you may owe Filing dates for 2020 taxes ... Apr 30, 2021: Deadline to file your taxes Jun 15, 2021: Deadline to file your taxes if you or your spouse or common-law partner are self-employed Payment date for 2020 taxes Apr 30, 2021: Deadline to pay your taxes

Looking for a way to boost your refund or lower the amount of taxes you owe? Whether you’re claiming them on your 2020 return or planning ahead for 2021, here are some new federal and provincial tax credits that you’ll want to know about: 1. Canada Training Credit The Canada training credit is a new federal tax credit for students! This credit will be available if you paid eligible tuition and other fees for courses you took during the year. Keep in mind, this credit reduces ...Continue reading

The federal government announced it will extend the Canada Recovery Benefit eligibility period by an additional 12 weeks, as some recipients face a cut-off by end of March. Prime Minister Justin Trudeau also said Friday that Ottawa will prolong the Canada Recovery Caregiving Benefit (CRCB) by the same amount. While the CRB and the CRCB were set to be in place until the fall, recipients can only claim the benefits for up to a total of 26 weeks between September 27, 2020 and Se...ptember 25, 2021. If an individual had been using the program since its launch, their support would tap out by the end of March. The feds will also extend the Canada Recovery Sickness Benefit (CRSB) from two weeks to a total of four weeks and broaden the claimant period for employment insurance from 26 weeks to 50 weeks.

What is the Climate Action Incentive? Here’s how it affects your taxes. You may have heard that as part of the Government of Canada’s climate change plan residents of New Brunswick, Ontario, Manitoba and Saskatchewan will receive a new tax credit called the Climate Action Incentive when they file their 2018 tax return in early 2019 -an effort to protect the environment, grow the economy and increase your refund (yay)! If you live in one of these provinces you will be charged ...Continue reading

What’s New for Taxes in Canada 2019 2018 saw a slew of tax credit changes ranging from coverage for fertility treatments to the loss of some tax credits for transportation and textbooks. Even how and when you could file your return changed. In contrast, 2019 doesn’t seem to be a year with many tax changes on the docket. Most of the changes introduced were aimed at small business owners or professionals. Deductions to Remember for Taxes in Canada 2019... Although there aren’t many tax changes slated for millennials in 2019, there are a variety of deductions that you might have missed in previous years. For renters living in Ontario, it’s important to request a receipt from your landlord for rent paid in 2018. This information is useful for determining whether you qualify for the Ontario Trillium Benefit, a refundable tax credit for low-income families. If you made donations this year, make sure to find the receipts, because you can claim those donations on your taxes. If you made donations in previous years and didn’t claim them, request receipts from the charitable organization, because donations can be claimed up to five years after they occurred. If you’re a new homeowner, you’re probably feeling the financial crunch that comes with new home ownership. The good news is that you’ll qualify for the $5,000 first-time home buyer’s tax credit. The only requirements to claim this tax credit are that you or your partner have purchased the home in 2018, and you did not live in another home owned by you or your partner in the four years before the purchase. Finally, for students or recent graduates, you might be lamenting the elimination of the textbook tax credit, but you can still claim some deductions for being a student. Student loan interest is deductible, and if you paid tuition at a recognized post-secondary institution, you might be eligible to claim your tuition or carry it forward to higher earning years. Your school’s student accounts office will have copies of your tuition payments. Should you contribute to your Registered Retirement Savings Plan (RRSP)? During ‘RRSP Season’ many organizations tout the benefits of contributing to your RRSP to reduce your liability at tax time. But prioritizing contributions to your RRSP (which are tax deductible) over your Tax Free Savings Account (TFSA) isn’t always the best strategy for millennials. If you are in the lowest tax bracket (income under $43,000), it is not recommended to contribute to an RRSP, says McCann. TFSA contributions are recommended if you are in a low-income tax bracket, expect to be in a higher tax bracket in the future, or no longer have any RRSP contribution room.

Changed credits and amounts Tuition, education, and textbook credits As of January 1, 2017, the federal education and textbook credits were eliminated. However, you can still carry forward unused amounts from previous years. Also, with certain conditions, you may now be able to claim the tuition amount for fees you paid to a post-secondary educational institution for occupational skills courses, even if they are not at a post-secondary level. Children’s credits As of January 1, 2017, the children’s arts tax credit and children’s fitness tax credit were eliminated. Public transit tax credit As of July 1, 2017, this credit was eliminated. For this tax year, you can claim the cost of eligible public transit expenses only for travel taken from January 1 to June 30, 2017.

New and improved credits Canada caregiver credit This non-refundable tax credit replaces the family caregiver credit, the credit for infirm dependants age 18 or older, and the caregiver credit. It gives tax relief to eligible individuals who have a spouse or common-law partner, or a dependant, with an impairment in physical or mental functions. Disability tax credit (DTC) certification Nurse practitioners across Canada can now certify the application form for the DTC. Med...ical expense tax credit If you need medical intervention to conceive a child, you may be eligible to claim certain expenses even if you do not have a medical condition. These expenses are the same as those that would generally be allowable for individuals who have a medical condition. If you had fertility-related expenses for any of the 10 previous calendar years and you have not claimed them, you can request a change to your income tax and benefit return(s) to include these eligible expenses. See more

For All Your TAX & Accounting Needs (10+ Years Experience) 1) Maximum Tax Credit/Refunds Where Applicable 2) Personal and Corporation Tax return T1/T2 E-Filing 3) GST/HST, Payroll Preparation & CRA Audit Assistance 4) Child, Disability TAX Credit Applications & Many More

For All Your TAX & Accounting Needs (10+ Years Experience) 1) Maximum Tax Credit/Refunds Where Applicable 2) Personal and Corporation Tax return T1/T2 E-Filing 3) GST/HST, Payroll Preparation & CRA Audit Assistance 4) Child, Disability TAX Credit Applications & Many More