Filing your taxes this year might feel a bit daunting, especially if you collected any COVID-19 government benefits, but we’re here to help! Here’s some useful information to help you start preparing now, so you’ll be ready to file in April.
2020 was a challenging year for all of us, and while it will be nice to put it in the past, there are still some loose ends to take care of. Filing your taxes this year might feel a bit daunting, especially if you collected any COVID-19 government benefits, but we’re here to help! Here’s some useful information to help you start preparing now, so you’ll be ready to file in April.
One of the most significant changes many Canadians have to consider this year is the role the Canadian Emergency Response Benefits (CERB) will play in their return. First and foremost, it’s important to note that your taxable income will include any CERB payments you collected, and you’ll receive a T4A tax slip that indicates the amount you’ll need to pay.
CERB payments were issued weekly for a maximum of 28 weeks, or $14,000. Because no tax was deducted when the payments were issued, you will need to pay tax on the amounts you received when you file your return. It’s also crucial that you make sure that you met all the eligibility criteria for all payments received, as the Canada Revenue Agency now requires you to pay back anything you didn’t qualify for.
The total tax you owe depends on your tax bracket, which is calculated from your total taxable income. That’s any money you earned this year from employment (including self-employment or commissions) and income from other sources (like interest earned on investments).
Tools like an online Canadian tax calculator will help you get a better idea of what you might owe, then schedule an appointment to speak with a member of our team. We can help you set up a plan to start setting aside money now for the taxes you may owe in April.
To get started, give us a call at 204-949-7744 or email email@example.com. We’re here to help!
Friday | January 29, 09:35 AM