Here’s What’s New for the 2021 Tax Season
There’s one more chore to complete before troublesome 2020 can become a distant memory. Thanks to the pandemic, filing your income tax return will offer some interesting twists for this year’s task. However, there can be some useful opportunities available for the strategic tax filer.
Deadlines and deferrals
Unlike last year, there will be no deadline extension for filing your taxes, so it’s time to get busy. To avoid penalties, April 30 is still the date to hit for most Canadians.
If you’re self employed, June 15th is your filing deadline, but any money you owe is due by April 30th. If you aren’t certain that you don’t owe taxes, you must at least finish your calculations by that time.
The late-filing penalties are not negotiable, but there’s flexibility around the interest you could be charged. Canada Revenue Agency introduced a ‘targeted interest relief program’ in February, focused on unexpected taxes from last year’s Covid benefits. No interest for a full year; you might turn this into an investment opportunity.
Be sure to file your tax return on time. Benefits such as the Canada Child Benefit (CCB), GST/HST credit, and Old Age Security pension are based on it.
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