Another year has gone whizzing by. As of February 22, 2021 CRA, has opened their servers to accepting e-filing of personal tax returns. It is important for everyone to file their income tax and benefit return on time, since it is necessary to receive benefits and credits you are entitled to. Here is what you need to know about filing your personal tax returns for 2020.
Interest relief if you received COVID-19 benefits:
Interest relief will be provided to individuals who meet all the following:
- Your 2020 taxable income was $75,000 or less
- You received at least one COVID-19 benefit in 2020l:
- 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
Taxpayers who satisfy the above conditions will be granted interest relief on 2020 tax owing. This means no interest on amounts owing until April 30, 2022! Careful! Late filing penalties will still apply (5% of the tax balance owing) so make sure you file on time to avoid unnecessary penalties and interest.
T4A Issued to Report COVID-19 amounts:
You may have already received a T4A and are wondering what to do with it. The T4A slip indicates the type of COVID-19 benefit you received and should be reported on your personal tax return. Please make sure the amount on the T4A is correct. If you find an error with your T4A, call CRA immediately to resolve it at 1-800-959-8281.
If you cannot pay your taxes in full:
To avoid additional penalties, always file your return on time. If you can make a partial payment, this will reduce the amount of interest you will pay. The CRA has also expanded payment arrangement options to give taxpayers more flexibility.
Tax filing deadline:
As far as we now, the deadline to submit your 2020 personal tax return is April 30, 2021.
If you need assistance with filing your tax returns, contact Argento CPA and we will help you with your tax situation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.