Tax Time Tips
Under normal circumstances keeping your tax records in order can be challenging. Now factor in COVID-19. The activity could even become more complicated.
Our top tip is to get your 2020 taxes in order sooner than later. If you’re one of the few that are ultra-organized and you got things in order before the year ended — our hats off to you. If you’re like many other Canadians here are some top tax tips for 2020.
- If your household took advantage of the Canada Emergency Response Benefit (CERB) during 2020, it is taxed as income. Don’t forget about this income when doing your calculations.
- The CRA will be sending you T4A slips if you received federal support related to COVID-19 so keep your eyes open for that. The tax slip will confirm the amount of taxable income and should be sent by the end of February.
- March 1, 2021 is your deadline to make RRSP contributions for the 2020 tax year. RRSPs are a great way to leverage tax deduction and make an investment in your future.
- If your household was able to provide charitable support this year that’s fantastic! Don’t forget about any charitable giving you might have done in 2020.
The 2020 tax year will likely be like no other for taxpayers. It’s also going to be like no other tax year for the CRA as well. If you do your own taxes, it’s important to keep up with changes. If you’re uncertain, it might be a good year to pay for the services of a tax professional.