It’s Tax Season Again!
This past year has been another challenging year, and unfortunately, Covid-19 continues to impact all of us. Although we are an essential service and allowed to open, our office is small and social distancing is challenging with a full sta of employees and many clients visiting us daily. So, we will continue to accept your tax documents by drop-off or online.
We understand that not everyone is comfortable with putting documents through our drop slot or uploading them remotely. Please be assured that the security of your documents is of utmost importance to us. When you put your documents through our drop slot, your documents are safe.
You may not be able to see us working inside the office, but we can see outside clearly and can see clients dropping off. If you choose to upload your documents on our website, we are immediately notified of your upload, and you will also receive a confirmation by email.
You may not be comfortable with dealing with us remotely, but we have adapted to these circumstances. After all, Aldo has been doing this for over 50 years and Cindy over 10 years. We also have an amazing customer service team ready to support you and answer your questions.
The most important thing is to conduct business safely so we can stay healthy and be available to serve you during the tax season.
Our customers have always been the heart of our company. We’re grateful to you, the trust you have placed in us, and that you’re doing your part to flatten the curve.
We wish you and your loved ones a safe and healthy 2022!
Important Dates to Remember
- Tax filing deadline is April 30th
- Self-employed deadline to file is June 15th
- Tax owing is due by April 30th for individuals and self-employed
10 Life Changes that Affect Your Taxes
- New Home Address
- Sale of Principal Residence
- First Time Home Buyer
- Home Buyers Plan Repayment
- Marital Status – Date of Change
- Death Certificate
- CPP Death Benefit
- Birth of a Child – Date of Birth
- Tuition Fees
- Disability Tax Credit
Please attach a written note about any changes with your tax documents
Working From Home?
“Simplified” Deduction Covid-19
The “simplified” home office deduction (flat-rate deduction per day worked at home) has been extended to include the 2021 tax year. This method is available for employees who were required to work from home due to the Covid-19 pandemic. The deduction amount has been increased to $500 (from $400).
Educator School Supply
Tax Credit – Increased!
For the 2021 tax year, the eligible educator school supply tax credit has been enhanced to 25% (from 15%) on up to $1,000 of eligible expenses (expenses can include certain electronic devices).
Employers must continue to certify that the supplies were purchased for the purpose of teaching or facilitating students’ learning, and individuals making claims are required to retain their receipts.
Have You Sold Your Home?
The principal residence exemption is a very attractive feature of the Canadian tax system, as it allows a capital gain realized on the sale of a principal residence to be earned free from tax, provided the residence was designated as the taxpayer’s principal residence for every year of ownership.
The principal residence exemption is reported on your income tax return, along with some basic information:
- Address sold
- Year purchased
- Date sold
- Sale price
- Owner names
Disability Tax Credit (DTC) – T2201
Do you or a family member have a prolonged impairment?
- ADHD
- Addiction
- Anxiety
- Alzheimer
- COPD
- Depression
- Dementia
- Difficulty Walking
- Eating Disorders
- Hearing Impaired
- Irritable Bowel
- Learning Disability
- Mental Illness
- OCD
- Parkinson’s
- Physical Disability
- PTSD
- Sleep Disorder
- Scoliosis
- Vision Impaired
You may be eligible for the Disability Tax Credit.
The DTC amount is a non-refundable tax credit used to reduce your income tax payable on your income tax return. If you do not need the DTC to reduce your income tax payable, the credit can be transferred to a spouse or common-law partner, or someone else.
You may be entitled to refunds, going back 10 years. Ask us for details.
Climate Action Incentive Payments – CAI (Carbon Tax Credit)
The CAI will no longer be paid to you as a refundable credit on your 2021 tax return.
The new CAI payments will be paid to you quarterly as part of the benefits system: July, October, January, and April.
Payments will be increased and start in July 2022 with a “double-up” payment that will include the first two quarters of 2022: January-March 2022 and April to June 2022.
Individuals will still need to file a tax return to receive the CAI payments.
Income Tax Newsletter 2021