When to pay taxes – and other things you should know about your 2021 income taxes

    0
    17


    Naturally, when the COVID-19 lockdown forced many Canadians to work from home last year, taxpayers wondered what work-related expenses they could possibly write off. There were questions about applying for masks, office furniture, $ 400 home office credit, and internet / phone usage. Then there were concerns about how government benefits like the Canada Emergency Recovery Benefit (CERB) and its successor, the Canada Recovery Benefit (CRB) would be taxed.

    This year, some of these questions remain as it is unclear whether the 2020 contingency claims will be carried over unchanged, changed, or eliminated. It is also unclear when several new and changed deductions, credits and benefits that the federal government promised in the last budget and / or in the last election campaign will come into force. We will update this story as soon as the information is released. With this in mind, here is the latest information on filing your 2021 tax return.

    When will income tax be due in 2021?

    For most Canadians, the deadline for filing their 2021 income tax and performance return is April 30, 2022. If you are self-employed, then June 15, 2022. In either case, if you pay tax, the deadline for payment is April 30th, 2022. As of this writing, there are no renewals announcements.

    What is the Canadian Worker Lockdown Benefit?

    After winning another minority government in the September 20 election, the Liberal Party announced plans to aid Canadians, including the Canada Worker Lockdown Benefit. The new benefit, which went into effect October 24th after the end of the CRB, gives workers exposed to bans $ 300 a week. This benefit is also available to people who have not been able to take out unemployment insurance. It runs until May 7, 2022.

    Both the CERB and CRB are considered taxable income and must be reported on your 2020 and 2021 income tax returns. The new benefit will likely be treated the same way. Depending on the tax class, this can lead to a higher tax burden in April 2021.

    What expenses can be claimed on a T2200?

    In 2020, eligible employees working remotely were able to deduct up to $ 400 in household expenses from their taxable income without having to keep receipts or obtain a signed T2200 form from their employer. In addition, companies were allowed to reimburse their employees up to $ 500 for home office equipment – such as desks and chairs – as a tax-free benefit.

    “I think it was very helpful for so many employees to have access to the Home Office Deduction, especially since people are still working from home,” said Shannon Lee Simmons, certified financial planner and founder of the New School of Finance. “Having the flat rate was really good legislation, it was easy [to claim], got the job done and realized that people are using their own space and internet. ”

    Government Agrees: Their electoral platform contained a promise to extend the simplified withholding until tax year 2022 and increase the allowable amount to $ 500, although specific details are yet to be announced.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here