What’s new this tax season

IRS Says Key Tax Forms Will Be Ready For Tax Season, But There's No Start  Date Yet

Each year, CRA makes changes that have the ability to impact your Canadian tax filing. While some changes can be minimal, it’s important to be aware of them, because they may still impact your individual tax situation.

Here are some changes that were made for the 2020 tax year.

Additional boxes on T4

If you’re an employee, chances are that you may have already received your T4. You may also have noticed additional boxes on the document. In order to verify eligibility for both CERB and CESB, CRA requires employers to report gross income for specific periods of time on the T4.

When these 2 programs where initially implemented, there was very little way for CRA to check a person was actually eligible for them. I guess there is no such thing as a free lunch….

T4A for emergency benefits

If you’ve received CERB, CESB or any other Covid benefits, the Federal Government will send you a T4A. As a reminder, these benefits are taxable.

CPP and tax rates

While the basic exemption is at $ 13 229.00, both the CPP and tax rates have slightly increased. The CPP rate is now at 5.25% and the overall tax rates jumped by 1.9%.

TFSA and RRSP

The maximum TFSA contribution in 2020 remained at $ 6 000.00. The maximum RRSP contribution is $ 27 230.00.

Filing deadlines

These haven’t changed. For individuals, it’s still April 30th. Self-employed people have until June 15th; however owing amounts still need to be paid by April 30th. Penalties have been reinstated.

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