I am giving all my clients a big (virtual) hug, 2020 was a tough year. I know it’s been really hard for some more than others. I really feel for those of us who are struggling. Some of us are dealing with our own or our family’s physical and mental health challenges; some of us had to curtail or shut down our small businesses; some of us had reduced or no employment. My sincere hope is that 2021 will be better for all of us.
All you need to know about filing your 2020 tax return
I have changed the format of my annual tax letter and checklist, I hope you find the changes user-friendly. Let me know what you think!
So far, Canada Revenue Agency has not announced any changes to the deadlines. If an extension is announced, I will keep you posted.
You can click here for the 2020 Personal Tax Checklist or go to my website to obtain the checklist.
RRSP Contribution Deadlines
|Regular RRSP contribution||March 1, 2021|
|Home Buyers Plan repayment||March 1, 2021|
Tax Filing Deadlines
|Type of Return||Filing Deadline||Amount owing due date|
|Personal tax return||April 30, 2021||April 30, 2021|
|Self-employed tax returns||June 15, 2021||April 30, 2021|
|HST Returns self-employed (annual filers)||June 15, 2021||April 30, 2021|
Employees working from home during COVID-19
If you worked from home in 2020 due to COVID-19, you may be able deduct employment expenses. Please see my “Employment Expense Determination” worksheet to see if you have a deduction and how to determine the maximum claim. Click here for the worksheet or go to my website to obtain the worksheet or to obtain the Excel version.
Seniors doing home renovations for safety and mobility
Ontario claim: starting in 2021, save 25% in taxes on renovation amount up to $2,500
Existing Federal claim: save 15% in taxes on renovation amount up to $1,500
Combined maximum savings: $4,000
Digital news subscription expenses
For the 2020 to 2024 tax years, you may be able to claim a non-refundable tax credit for expenses you paid in the year for a digital news subscription with a qualified Canadian journalism organization.
COVID-19 related Federal personal support programs
Here’s what’s taxable and what’s not. You will receive a tax slip for the benefits that are taxable.
|Canada Emergency Response Benefit (CERB)||Yes|
|Employment Insurance (EI) program||Yes|
|Canada Recovery Benefit (CRB)||Yes|
|Canada Recovery Sickness Benefit (CRSB)||Yes|
|Canada Recovery Caregiving Benefit (CRCB)||Yes|
|Canada Emergency Student Benefit (CESB)||Yes|
|One-time payment – disability support||No|
|One-time payment – GST/HST credit||No|
|One-time payment – Canada child benefit||No|
|One-time payment – OAS/GIS||No|
If you have not picked up your 2019 tax documents please contact me to make arrangements.
I look forward to hearing from you again this tax season. I appreciate your business very much. Please call me if you have any questions as you gather your tax information for 2020 or if you wish to discuss any other tax matters.