Search

What's new for 2021 tax filing (2020 tax returns)?​

Updated: Feb 28








Immediate Support for Families with Young Children - The Government proposed to provide, in 2021, four tax-free payments of $300 per child under the age of six to families entitled to the Canada child benefit (CCB) with family net income equal to or less than $120,000, and $150 per child under the age of six to families entitled to the CCB with family net income above $120,000. Individuals who are entitled to receive a CCB payment in January, April, July and October, will receive these payments for children under the age of six. The first two payments would be based on the family’s net income in 2019 while the last two payments will be based on the family’s net income in 2020. Parents must file their tax returns for these years to receive all four payments.

Home Office Expenses - The Canada Revenue Agency (CRA) provided details of a new additional method that eligible employees could use to claim work from home tax deductions for 2020. This new method — the temporary flat rate method — is only available for 2020. The existing detailed method continues to be available and eligible employees can choose the method that provides them with a higher tax deduction. For more details, you can refer to https://www.ibtax.ca/post/new-home-office-expenses article and https://www.ibtax.ca/post/home-office-expenses-calculator for the CRA home office calculator.

Canada Training Credit - If you were at least 26 and less than 66 years old at the end of 2020 and you have a Canada training credit limit for 2020 on your latest notice of assessment or reassessment for 2019, you may be eligible to claim this refundable tax credit for up to half of your eligible tuition and other fees paid to an eligible educational institution in Canada for courses you took in 2020, or fees you paid to certain bodies for an occupational, trade or professional examination taken in 2020.

Recipients of COVID-19 Emergency Benefits - If you received CERB, CESB, CRB, CRSB or CRCB payments, you need to include the total amount you received on your return. For any such payments, you will receive a T4A (for benefits issued by the CRA) and/or a T4E (for benefits issued by Service Canada) tax slip in the mail. Residents of Quebec will receive both a T4A and RL-1 slip from the CRA.


Source: CRA

For useful periodic updates and tips, "LIKE" Our page on FACEBOOK or sign up to our newsletter on www.ibtax.ca or call us at (613) 800-9838 for free consultation.


246 views0 comments

Recent Posts

See All