10 issues to know earlier than submitting your tax return this 12 months


Jamie Golombek: Tax season is in full swing and individuals who have already filed and claimed refunds are getting a median of $2,145 again

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Tax season is in full swing. Digital submitting started on February 21, and the Canada Income Company has to this point obtained greater than 2.4 million returns, 95 p.c of them filed electronically. Greater than two-thirds of tax filers have claimed refunds on their 2021 returns, with the common refund being $2,145.

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Listed here are 10 issues to remember whereas doing all your job this tax season.

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time restrict

The standard tax-filing deadline for most people is often April 30, however you could have till Might 2 this 12 months to file as a result of April 30 falls on a Saturday. If you happen to or your partner or common-law accomplice had self-employment revenue in 2021, you could have till June 15 to file your return. In any case, you probably have an excellent stability, it have to be obtained or processed at a Canadian monetary establishment on or earlier than Might 2, 2022 to be able to be paid in a well timed method.

COVID-19 Advantages

If you happen to obtained COVID-19 advantages such because the Canada Restoration Profit administered by the CRA in 2021, it’s best to have obtained a T4A tax slip from the federal government in February. (Quebec residents would even have obtained the RL-1.)

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It is very important word that some tax was withheld at supply when COVID-19 advantages have been paid, however chances are you’ll pay extra tax on prime of that. The CRA has acknowledged that this could current vital monetary hardship for some taxpayers. Affected people could want to make the most of CRA’s prolonged fee association, which provides you with extra time and adaptability to pay the tax due, relying in your monetary state of affairs.

A COVID-19 benefit check.
A COVID-19 profit test. Photograph by Peter J. Thompson/Nationwide Publish

Lump sum fee for senior residents

Senior residents who have been eligible for an outdated age safety pension in June 2021 and have been born on or earlier than June 30, 1947 (which means they might flip 75 by July 1, 2022) can be paid a lump sum of $500 in August 2021 fee obtained. All eligible senior residents, no matter revenue degree, obtained a $500 fee meant to “help the upper bills of older seniors”, and was estimated to use to three.3 million individuals.

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Most eligible senior residents could have obtained a T4A slip from Service Canada for this quantity by now, however some slips could also be delayed and can run out in the course of the week of March 14, 2022. A small quantity obtained an incorrect slip, containing duplicate quantities in bins 018 and 205. The revised slip was issued to those people, so be sure to use the proper slip when finishing your return.

local weather motion stimulus fee

If you’re a resident of Alberta, Saskatchewan, Manitoba or Ontario, you not declare your climate-action incentive (CAI) in your tax return. As an alternative, you’ll robotically obtain your CAI funds 4 occasions in a 12 months starting July 2022, offered you file your 2021 return and qualify for the fee. July funds will embody a retrospective quantity for April 2022, and future funds will probably be made on April 15, July, October and January.

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residence workplace bills

should you Work at home in 2021 attributable to COVID-19, chances are you’ll be eligible to assert a deduction of as much as $500 yearly for home-office bills in 2021 utilizing the floating flat fee technique. Or, you might be able to declare your precise bills in an in depth method.

Certified Trainer Faculty Provides Tax Credit score

This tax credit score was expanded and enriched for 2021 to permit academics to assert a 25-percent refundable tax credit score for purchases of as much as $1,000 on eligible instructing provides bought in 2021. The federal government additionally expanded the checklist of eligible instructing provides to incorporate digital gadgets. , reminiscent of calculators, digital timers and instruments for distance studying.

Teachers can claim a 25-percent refundable tax credit for purchases of up to $1,000 on eligible teaching supplies purchased in 2021.
Academics can declare a 25-percent refundable tax credit score for purchases of as much as $1,000 on eligible instructing provides bought in 2021. Photograph by Karl Racine/Reuters

Add your e mail tackle for My Account

As a fraud prevention initiative, offering an e mail tackle to the CRA to entry the net My Account portal is obligatory by February 7, 2022. This enables the CRA to inform the taxpayers of any modifications made to their account in actual time to make sure that such modifications are licensed. CRA has additionally added multi-factor authentication for all customers and you’ll now have to enter a one-time passcode each time you sign up to CRA’s digital providers.

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Taxpayers have the choice of receiving paper mail or e mail notifications when CRA correspondence is offered for viewing electronically in my account. However be forewarned: If you choose the digital notification choice and miss an necessary CRA e-mail, you possibly can ultimately be on the hook for curiosity and penalties, as proven within the 2021 case.

Auto-fill my return

This CRA service has been prolonged for 2022, and might now present downloaded tax slip info, together with Registered Retirement Financial savings Plan (RRSP) contribution receipts for 2021 and the final 5 tax years (as a substitute of 4), that are older. May help whereas submitting returns. ,

automated callback service

If you happen to get annoyed ready on maintain to talk to a CRA agent, a brand new service (“when accessible”) could can help you request a callback. The service could also be accessible to callers on the private tax, profit and enterprise inquiry traces, however solely at sure occasions of the day and solely when the ready time reaches a sure (unspecified) size.

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digital information subscription tax credit score

Lastly, in case you are studying this text on-line and you’ve got paid for a digital newspaper app or web site, you might be able to declare the digital information subscription tax credit score, which relies on the quantity you paid. 15 p.c on eligible bills as much as $500. in 2021. You have to have paid an quantity to an eligible Canadian journalism group for a digital information subscription consisting primarily of written information content material. A listing of eligible digital information subscriptions will be discovered on-line.

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In case your subscription contains each paper print copies in addition to on-line digital entry, solely the price of a standalone digital subscription (or a comparable one) is a certified expense. If there isn’t any standalone or comparable subscription, you’ll be able to declare solely 50 p.c of the price as a certified expense.

Jamie Golombek, CPA, CA, CFP, CLU, TEP is the Managing Director of Tax and Property Planning with CIBC Personal Wealth in Toronto. jamie.golombek@cibc.com

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