Are you ready for 2020 Personal Taxes?
COVID-19 brought unprecedented uncertainty and change to the world and the tax landscape was no different. A few particular items of importance to keep in mind, for both employers and employees, have been summarized below.
Tax Deadline
The tax deadline for this year has returned to April 30th for individuals. For self-employed individuals it is June 15th - note that this also applies if your spouse or common law partner is self-employed.
CRA Registration
Register for a CRA online account. My Account - for individuals, and My Business Account - for businesses. These accounts will allow you to track CRA Correspondence, set up Direct Deposit, check Carry-forward balances, and many other useful functions.
If you’re a new user, you will need to wait for a Security Code to be sent to you in the mail to approve your access. As this can take up to a week, don’t delay in requesting this.
T4 Slips
T4 slips issued by employers will require additional detail on payments made between March 15, 2020 to September 26, 2020. The intention of these enhanced requirements is to allow the CRA to validate that you weren’t receiving COVID-19 related benefits while being employed.
For employers, T4 slips need to be filed with CRA on or before March 1, 2021. If they are not filed by this date they will be subject to a penalty.
COVID Benefits
If you received CERB or COVID-19 benefits, you will receive a T-slip from the Government and the benefits received will be taxable. The amount of tax owing will depend on your marginal tax rate which is determined by your income and your province of residence.
Home Office Expense Deduction
Work at home deduction will be available if you qualify. Check out our previous post on this topic below.
evolvecpas.ca/blog/working-from-home
The CRA has provided a handy calculator to allow you to make the best determination of which method to choose. Check out our CRA resources section to access it.
As always, reach out to the Partners at Evolve CPAs if you have any questions or if you’d like to have a discussion as to how some of these changes may impact you.
