Sunday, January 23, 2022

Tax Time

It’s that time of year again—time to file your tax return. The deadline to file if you owe is May 2, 2022

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Why file on time?

You may be due for a refund! You may be eligible for the Federal Carbon Tax Rebate.

If you owe and are late in filing, interest can add up quickly. The penalty is five percent of your 2021 balance owing, plus one percent of your balance owing for each full month your return is late, to a maximum of 12 months. There are additional charges if you failed to file and owed for previous years.

What if I work part time and don’t make enough to have to pay taxes?

If you don't file your return, your GST/HST credit (including any related provincial credit) and Canada Child Benefit payments (including related provincial or territorial payments) may be delayed.

Do I need documentation for claims?

Yes. Ensure you have documentation for anything you claim such as child care expenses, medical expenses, charitable donations, and RRSP contributions in case the CRA wants to see it.

Tax Rates

The basic personal amount (the amount you don’t pay taxes on) varies from province to province, as do provincial tax rates.

The Federal basic personal amount is $13,808 for 2021. The tax rate is 15 percent on the first $49,020 of taxable income and 20.5 percent on the next $49,020 of taxable income (on the portion of taxable income between $49,020 and $98,040).

Other things to keep in mind

If you received CRSB, CRCB, CERB, EI, or other COVID-19 government benefits in 2021, be sure to claim them on your tax return since they are taxable benefits.

The Canada Child Benefit is tax free, so it does not need to be claimed.

Who can help you file?

Online tax filing services such as TurboTax or Wealthsimple Tax, which is free, help make filing simpler by walking you through the process, asking you questions about your situation, doing the math for you, and uploading your return to the CRA.

Tax Time

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