Final 12 months, as COVID-19 lockdowns pressured many Canadians to do business from home, taxpayers naturally puzzled what employment-related bills they is perhaps allowed to write down off. There have been questions on claiming masks, workplace furnishings, the $400 dwelling workplace credit score, and web/cellphone utilization. Then there have been issues about how authorities advantages just like the Canada Emergency Restoration Profit (CERB) and its successor, the Canada Restoration Profit (CRB) could be taxed.
This 12 months, a few of those self same questions stay, because it’s unclear whether or not the emergency claims from 2020 shall be carried over as is, modified or eradicated. There’s additionally a scarcity of readability on when a number of new and amended deductions, credit and advantages that the federal authorities promised within the final funds and/or through the current election marketing campaign will come into impact. We shall be updating this story as the knowledge comes out. However with that in thoughts, right here’s the most recent information on submitting your 2021 tax return.
When is earnings tax due for 2021?
For many Canadians, the deadline to file your 2021 earnings tax and profit return is Apr. 30, 2022. For those who’re self-employed, you’ve got till Jun. 15, 2022. Both means for those who owe taxes the fee deadline is Apr. 30, 2022. As of the date of this text, there aren’t any bulletins about extensions.
What’s the Canada Employee Lockdown Profit?
After the Liberal celebration received one other minority authorities within the Sept. 20 election, it introduced plans to assist Canadians, together with the Canada Employee Lockdown Profit. The brand new profit, which got here into impact on Oct. 24 following the tip of the CRB, offers $300 per week to employees who have been affected by lockdowns. This profit can also be accessible to individuals who couldn’t get Employment Insurance coverage. It runs till Could 7, 2022.
Each the CERB and CRB are thought of taxable earnings and have to be reported in your 2020 and 2021 earnings tax returns. The brand new profit will probably be handled the identical means. Relying in your tax bracket, that might result in an even bigger tax invoice in April 2021.
What bills could be claimed on a T2200?
In 2020, eligible staff who labored remotely might deduct as much as $400 in dwelling bills from their taxable earnings, with out the necessity to preserve receipts or get a signed T2200 type from their employer. Moreover, corporations have been allowed to reimburse staff as much as $500 for dwelling workplace tools—comparable to desks and chairs—as a tax-free profit.
“I believe it was actually useful for therefore many staff to have entry to the house workplace deduction, particularly since persons are nonetheless working from dwelling,” says Shannon Lee Simmons, licensed monetary planner and founding father of the New Faculty of Finance. “Having the flat charge was a very good piece of laws, it was simple [to claim], bought the job accomplished and acknowledged that folks have been utilizing their very own house and web.”
The federal government agrees: Its election platform included a promise to increase the simplified deduction by way of the 2022 tax 12 months, and improve the allowable quantity to $500, though particular particulars have but to be made obtainable.