Currently, there are no known extension to the tax return filing deadline – individuals need to complete by April 30, 2021, and self-employed individuals by June 15, 2021, to avoid late filing penalties
Any tax balances owing are due April 30, 2021
Relief measure – CRA announced eligible taxpayers who file their 2020 tax return will not be required to pay interest on any outstanding income tax debt for the 2020 year until April 30, 2022. To be eligible, individuals must meet the following:
Taxable income $75,000 or less in 2020
Received special COVID benefits (ie CERB, CRB, CRSB, CRCB)
Must file on time
Income and Deductions
COVID related income
Taxable programs received relating to COVID – recorded as income and will receive tax slip (ie T4A, T4E)
CERB, EI, CRB, CRSB, CRCB, CESB
Taxes were not withheld on all of these benefits which may impact the balances owing on your personal tax returns for 2020.
Individuals who typically get a refund may find themselves in a balance owing position if received benefits with no taxes withheld
COVID benefit repayments – if you received benefits in error, you will pay tax in the year you receive it and get a deduction in the year it is repaid
Contact CRA if receive tax slips that are incorrect related to COVID payments
COVID related business income (CEWS, CERS, CEBA)
CEWS/CERS is deemed to be received on the last day of the claim period even if payments were not received till later
ie CEWS period 10 claim ended December 10, 2020, and should be reflected in 2020 income even if not received until 2021
A forgivable portion of the interest-free CEBA loan is taxable and included in income when the loan was received
Ability to still apply for these programs – talk to your accountant
Home Office Deductions
Two additional options for claiming employment expenses related to COVID
In the past, allowed to deduct office in home expenses if your employer signed T2200. This is still an option for 2020.
If you were required to work from home due to COVID-19 more than 50% of the time over a period of at least four consecutive weeks in 2020:
Temporary Flat Method
$2/day worked from home; max $400
No form required from the employer
Simplified Detailed Method
Claim actual expenses on a prorated basis
Require T2200 form signed by the employer
Consider which method is best for your situation
Non-Refundable Tax Credits
Basic personal amount $13,229
Digital news subscription max $500
Credits Available
Canada Training Credit
Starting in 2019, if you were eligible, you could accumulate $250 per year in Canada Training Credit (CTC) limit up to a max of $5,000 in a lifetime
In 2020, this credit accumulated in 2019 may be claimed with eligible training fees paid
