Important Changes to your 2020 Tax Return
There is a lot of confusion this year regarding your 2020 income tax return. With all the changes from CRA, all the talk, and all the news…. there’s no wonder! We are here to help. We will break down some of the changes in our online posts & through our blog, but as always, make sure to ask one of our experienced accountants if you have any questions!
One of the first major topics that we are hearing from clients- is the deadline extended?
The answer is, no. This year CRA has announced that the deadline to file will NOT be extended, so you will need to file by April 30th, 2021.
The next question that follows has been: has the deadline to PAY any taxes owing been extended?
The answer is, yes...for some people. If you received Covid-19 benefits, and had a taxable income of $75,000 or less, CRA is providing Canadians with interest relief. If you are eligible, this relief will be automatically applied on your taxes owing.
According to CRA
Interest relief will be given to individuals who meet all of the following:
- Your total 2020 taxable income was $75,000 or less
- You received at least one COVID-19 benefit in 2020:
- Canada Emergency Response Benefit (CERB)
- Canada Emergency Student Benefit (CESB)
- Canada Recovery Benefit (CRB)
- Canada Recovery Caregiving Benefit (CRCB)
- Canada Recovery Sickness Benefit (CRSB)
- Employment Insurance (EI) benefits
- Provincial or territorial emergency benefits
- You filed your 2020 income tax and benefit return
- You have a balance owing for your 2020 taxes
So make sure to file your income tax return by the deadline (April 30th, 2021) and check your correspondence from CRA for information on taxes owing & deadlines.
For the full CRA link to this information- Click Here.
Finally, if you are worried about your ability to pay taxes owing, make sure to check out the options through CRA. If you cannot pay in full by the deadline, CRA does offer some payment arrangements. Visit this page to see your options for payment.
Over the coming weeks, we will continue to post more about your 2020 tax return, changes, important deadlines, and more. Check back, follow us on facebook, instagram and/or twitter, and contact us if you have any specific questions! We look forward to working with you this tax season (and beyond!).