“If you choose the flat rate method, you don’t have to fill out a T-2200 form or keep any documents to support your claim,” said Plumb. “Taxpayers can also use another addition and subtraction method that is more detailed but might work better for them as it reflects the actual home office expenses paid.”
Once the dust settles, some Canadians may be lucky enough to get a tax refund from the credit rating agency that they can either reinvest or use to pay off debt. From a purely mathematical point of view, repaying a loan at an interest rate higher than the expected return on your investment would be the better decision. But those who work with a financial planner may also find investing money in debt payments a good choice, even if they only have low-interest debt.
“It’s worth having a financial planner to talk to and say, ‘I know that mathematically this year I’ll be a little further behind when I pay off my debt, but I would still like to do it. ” Said Plumb. “It does two things: it may prepare them better for the future when an unexpected financial event occurs, and it can help them feel more comfortable and at ease in their lives. Who cares about math on this point? “
On the flip side, some Canadians who have relied heavily on CERB, CRB, or other benefits might be owed the CRA for the first time due to unexpected taxes. For those who made less than $ 75,000 in the past year, according to Plumb, the rating agency has set up a website where they can apply for interest rate relief so they can make payments on their taxes owed without interest until 2022 to have to pay.
“If you think you will end up owing money, make sure you file before the deadline so you can qualify for this interest rate relief,” he said.