Tracy's Taxes
21 Osborn Ave N3t 6p9 Brantford, ON, Canada

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Economical Insurance Demutualized and have sent out slips that need to be included in your income tax. When you report dividend income or a taxable capital gain, your net and taxable income will increase. This may reduce benefits and credits that you may receive, such as the Canada child tax benefit, the GST/HST, provincial/territorial family benefits, provincial/territorial tax credits, and some non-refundable tax credits, such as the age amount, spousal amount, and medical expenses. It may also increase your federal and provincial taxes and you may have to pay minimum tax. You may also have to repay part or all of any employment insurance or old age security benefits you received in the year.

Many taxpayers are unaware of the stiff penalty the CRA will impose on a taxpayer if they fail to report income from a T-slip on their tax return. This penalty is imposed whether the omission was intentional or not. The way the penalty works is the CRA will impose a penalty of 20% on the unreported income for failure to report income twice in a four year period. The amount of income not reported the first time is not relevant the second unreported amount in the four year period will be assessed the penalty. What taxpayers need to be aware of is that the CRA has a sophisticated T-slip matching program whereby they check the amounts and slips reported on your tax return against the slips filed with the CRA. This makes the penalty inevitable if a slip is not reported on your tax return.

The Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB) were intended to support people who lost their job through the outset of the pandemic. However, the Government recognizes that some Guaranteed Income Supplement (GIS) and Allowance recipients may face lower benefit payments because of the income they received from the CERB and CRB. As announced in the Economic and Fiscal Update, the Government will provide up to $742.4 million for one-time pay...ments. These payments will alleviate the financial hardship of those seniors who qualified and received CERB and CRB in 2020 but who subsequently saw that they counted as income and impacted their GIS or Allowance benefits. This automatic, one-time payment will support those who saw a loss of GIS or Allowance by compensating them for the full, annualized loss amount. Seniors would not need to take any action to receive the one-time payment. To ensure that this issue does not reoccur, Canada’s Minister of Seniors, Kamal Khera, introduced Bill C-12 in Parliament today. Bill C-12 would amend the Old Age Security Act to exclude any income received under CERB, CRB, the Canada Recovery Caregiving Benefit, the Canada Recovery Sickness Benefit, and the Canada Worker Lockdown Benefit for the purposes of calculating the amount of GIS and Allowance payable beginning in July 2022. The Government will continue to provide support to seniors who need it most. Source: https://www.canada.ca/home.html

he T2201 form which helps the Canada Revenue Agency (CRA) determine your eligibility. How do I get the Disability Tax Credit Form? You can download the T2201 Disability Tax Credit Form here. It is available in print, digital audio, electronic text, and large print versions. It must be filled out by your doctor. Be sure to tick to box to say to automatically adjust previous returns for the credit.

Payment for children with disabilities If you are the parents of children with disabilities, you should receive the one-time payment. should receive the $600 payment on behalf of the child.

One-time payment to persons with disabilities This non-taxable, non-reportable, one-time payment provides up to $600 in recognition of the extraordinary expenses incurred by persons with disabilities during the COVID-19 pandemic. This payment complements other emergency supports, such as the one-time special payment through the Goods and Services Tax Credit and the one-time payment to seniors.

Because inquiring minds want to know. How long do you have to keep your tax documents? Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep your supporting documents for six years in case the CRA selects your return for review. The CRA may ask for documents other than official receipts, such as cancelled cheques or bank statements as proof of any deduction or credit you claimed. Also, keep a copy of your return, the related notice of assessment, and any notice of reassessment.