Things to Remember This Tax Season

1. File your income tax and benefit return

It’s important to file your return on time so that you can get any benefits and credits you may be eligible for! The CRA uses the information from your return to calculate your benefits and credits.


You should file your return on time every year, even if you don’t owe tax on your income or if you had no income at all. If you have a spouse or common-law partner, they should also file an income tax and benefit return.


2. File your return online

This year, the CRA encourages you to sign up for direct deposit and to file your return online to get your refund faster and avoid any delays.


If you chose to file electronically using NETFILE, you will be asked to enter an eight-character alphanumeric access code before filing. This unique code can be found on your Notice of Assessment (NOA) in the top right area of the first page.


3. Claim all your benefits, credits, and deductions

There are tax deductions, credits, and expenses you may be able to claim on your return. These include the Canada child benefit, the goods and services tax / harmonized sales tax (GST/HST) credit, and other related provincial or territorial benefits. Benefits and credits can provide payments to help you throughout the year, so you have more money in your pocket!


You may be able to claim:

· non-refundable tax credits for your medical expenses

· student loan interest

· deduction for child care expenses

· home office expenses deduction


4. Enter all your income and COVID-19 benefit payment amounts

You should get your T4 slips from your employer by the end of February. You may also get slips from other payers, such as pension providers and financial institutions.


If you received the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), or Canada Recovery Caregiving Benefit (CRCB) payments, these are considered taxable income, and you will have to enter on your return the total of the amounts you received.


Some income you earn may not be included on a tax slip. You should report other types of income such as:

  • Tips earned at your place of work

  • Money earned through the platform economy

  • Income from sales of goods or services (e.g., side jobs)

  • Sharing economy – Leveraging personal assets to earn revenue (e.g., Airbnb, DoorDash)

  • Gig economy – Short-term or short contract-based work (e.g., Clickworker, Crowdsource, Fiverr)

  • Peer-to-Peer (P2P) – Selling of goods and services from one person directly to another, either through a retail or wholesale platform (e.g., Etsy, eBay, Craigslist)

  • Social media influencers – Income earned through the use of social media platforms via advertisement revenue, subscriptions, product placement, product promotion, “gifts”/”donations”. (e.g., YouTube, Instagram, Twitch)

5. Make the right claims

Make sure you know what you can and can’t claim. Sometimes people mistakenly claim costs that are not eligible for tax deductions. If the CRA finds a mistake, we will adjust your return.


Common adjustments are made for things such as:

  • funeral expenses

  • wedding expenses

  • loans to family members

  • reimbursed medical expenses (such as prescription drug claims)


6. Simplify your life with My Account

My Account helps you easily manage your taxes from the comfort of your home. Register for My Account to easily:

  • view and update your personal information

  • see what you owe to the CRA

  • view your limits for a tax-free savings account or registered retirement savings plan

  • view the status of your return

7. File and pay on time

If you have a balance owing, paying it in full by the deadline will ensure interest is not charged. If you cannot pay in full, file your return by the deadline to avoid late-filing penalties. If you file your return by the deadline, you may be able to make a payment arrangement. This lets you make smaller payments over time for the debt and interest until you’ve paid the entire amount.


8. Keep receipts and documents

You should keep all your receipts and documents for at least six years starting from the end of the last taxation year to which they relate.


Source: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/eight-things-remember-tax-time.html?utm_source=mediaroom&utm_medium=eml


Need assistance or have a tax related question? Click here and contact a member of our Tax division.


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