The Deadline
The normal tax-filing deadline for Canadians is April 30th, but this year April 30th falls on a Saturday, therefore you have until May 2nd to file your tax return. If you or your spouse/partner had self-employment income in 2021, you have until June 15th to file your return(s). Either way, if you have a balance owing be sure to pay by May 2nd to avoid penalties.
COVID-19 Benefits
If you received Covid-19 benefits in 2021 you should have received a T4 from the government. The slip will show any tax that was withheld; however, you may still end up owning additional tax. The CRA has acknowledged this may cause additional financial hardship for some people. Those individuals may want to take advantage of CRA’s expanded payment arrangements, which may give the taxpayer more time and flexibility to pay the tax owing, based on their financial situation.
One-time Payment to Seniors
Seniors that were receiving OAS in June 2021 (and were over age 75 on July 1st) received a one-time $500 payment in August 2021. By now most seniors that received the benefit will have received a T4A slip from Service Canada. However, some slips were delayed and recently mailed out on March 14/2022. A few seniors received an incorrect slip, with duplicate amounts in boxes 018 and 205. Amended slips were issued and sent out; therefore, before filing your return, double check your slip to make sure you are using the correct one.
Climate Action Incentive Payment
As a resident of Ontario, you no longer claim your climate-action incentive (CIA) on your tax return. Instead, (provided you file a 2021 tax return and qualify) you will automatically receive your CIA payments in April, July, October, and January.
Home-office Expenses
If you worked from home in 2021 due to Covid-19, you may be eligible to claim a deduction of $500 (flat-rate method) or be able to claim your actual expenses using the detailed method.
Eligible Educator School Supply Tax Credit
Teachers can claim a 25% refundable tax credit for purchases up to $1000 on eligible teaching supplies; these now include electronic devices, calculators, digital timers, and tools for remote learning.
Digital News Subscription Tax Credit
If you have paid for a digital newspaper app or website, you may be able to claim the digital news subscription tax credit. The credit is worth 15% on qualifying expenses up to $500.
Add your email address for My Account
As a fraud prevention initiative, as of Feb 7, 2022, it is mandatory to provide CRA with an email address to access your on-line My Account. A multi-factor authentication will also be required for users, in addition, everyone will now need a one-time passcode when they sign into CRA’s digital services.
Auto-Fill my Return
CRA will now download tax-slip information directly to your software program including RRSP tax receipts for 2021, and the previous five years (up from four) which will help when filing older returns.
Automated callback service
Instead of getting frustrated waiting on hold to speak to someone at CRA, you can now request a callback to get answers regarding individual tax, benefits, and business enquiries. However, this service is only available at certain times of the day and only when wait times reach a certain length.
Hope you found this information helpful.
Best,
Mani Fenili (12-April-2022)
Source: Original article by Jamie Golombek posted on JamieGolombek.com, National Post 2022-03-10
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