When the pandemic hit, the Canada Revenue Agency (CRA) adopted measures to help Canadians cope with the global crisis. To do this, they extended both the deadlines for filing taxes and to make any payments that were owed. The CRA also did not charge penalties or interest on tax returns filed by September 1, 2020.
However, for the time being, the CRA appears to be sticking to its usual deadlines for tax returns for 2020. These deadlines are:
Individual Tax Returns – Returns as well as any taxes owing, are due April 30th, 2021.
Self-Employed Tax Returns – If you or your spouse/common-law partner is self-employed, the deadline to submit is June 15th, 2021. However, it should be noted that if you have any taxes owing, these are due on April 30th, 2021.
Corporate Tax Return – The deadlines for corporate taxes are much different than personal tax deadlines. In general, corporate tax returns are due 6 months after their year-end. This is where things can get a little bit tricky, as a corporation’s year-end does not necessarily always fall on December 31st.
In order to get yourself prepared for the 2020 tax season, here are some tips to help you be ready to submit your taxes on time.
Review your Prior Tax Return – Going over your previous year’s tax return will help you to see what information and income slips (T4, T5, etc) you will need to complete your taxes. This will ensure that you do not miss anything on your 2020 tax return. As it should be noted that the CRA charges penalties for any income slips missed!
Make Sure Your Information is up to Date – If your address has changed, marital status, and/or have new dependents, make sure to update the CRA. Some of these changes can cause adjustments to the benefits and credits you receive.
Organize Your Receipts – The more organized your information is, the easier your tax return can be filled out. As well, you need to keep all receipts and supporting documentation for at least 6 years. The reason being is the CRA may audit a past tax return and ask for the documentation as proof of any deductions or credits you claimed.
Claiming Medical Expenses – It is always a good rule of thumb to keep records and receipts of all medical expenses through the year. A good tip to save some time is to ask your pharmacy or doctor for an annual statement. This will get you all the information you would need for your expenses. For more details, visit the CRA’s website here on what medical expenses you can claim on your tax return.
While you can file your return online beginning on February 22, 2021. If you need further assistance planning and filing your 2020 tax return, Keenans Accounting Service is here for you. Just give us a call at 705-526-7628 to arrange a consultation by phone or via Zoom meeting. Secure contactless document dropoff and pickup are available. We are practicing social distancing while working remotely, and with reduced staff so please leave us a message, and we will get back to you as soon as possible.