2020 was certainly a difficult year in many ways. Suspension of professional activities for some, work overload for others, particularly health professionals: we all experienced extremes and the uncertainty associated with the health crisis.
And now tax season is fast approaching and you will need to submit an income statement, while being sure to claim all the deductions or tax credits you’re entitled to.
To make it easier for you, we have compiled a non-exhaustive list of the most common deductions, which could save you significant amounts of money. Depending on your profession, other deductions could be added: consult your accountant for this.
First, a review of some important dates regarding your tax return.
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Filing and payment deadlines
To date, the tax authorities have no plans to extend the deadline for filing income tax returns and paying tax.
- If you are an employee, the deadline for filing your return is the same as that for paying the tax amounts due, i.e. April 30, 2021
- If you are self-employed or the spouse of a self-employed person, you have until June 15, 2021 to file your returns. You should still pay your taxes by April 30, 2021, however, to avoid paying interest on the balance owing.
- If you have a tax balance to pay, meeting these deadlines is essential, because any failure to do so will result in late filing penalties as well as interest on the amounts due.
RRSP contributions made in the first 60 days of a given year can be deducted from income for the current year or the previous year.
- If you want to claim an RRSP deduction for 2020, you have until March 1, 2021 to make a contribution.
- If you choose to defer the deduction to 2021, know that you are still required to indicate this RRSP contribution on your 2020 return, even if you decide not to claim the deduction.
- If you have benefited from the HBP program in the past and have started making repayments to your RRSP, you also have until March 1, 2021 to make your repayment for 2020, in addition to your RRSP contribution.
Want more information on these measures or on other measures which could affect you?
Contact your advisor, who can provide you with more details and even set up personalized tax strategies to meet your more complex needs.