As we roll into February, many Canadians are starting to think about putting down their snow shovels and picking up their calculators. That’s right, it’s almost tax season! It might not be the most exciting thing in the world, but we can all agree that its an important and necessary part of the year – and a great excuse to stay inside on the colder nights to come!
The deadline to file your 2021 taxes with the Canada Revenue Agency is technically April 30, however you will have until May 2 this year as April 30 falls on a Saturday. If you or your spouse/common-law partner are self-employed, you’ll have an extended deadline of June 15. But don’t wait until the night before to start getting organized! Begin reviewing the process now to set your self up for success when you are ready to begin filing.
Before getting started, it’s a good idea to start gathering all the information required on your 2021 tax return to ensure you have all the pieces you need. For example, if you received any amounts from COVID-19 benefits such as the Canada Emergency Response Benefits (CERB), Canada Recovery Benefit (CRB), or Canada Emergency Student Benefit (CESB), you will receive a T4A or T4E slip with amounts that will need to be reported on your return. Other slips you may need could be a T5 Statement of Investment Income, T2202 Tuition Enrolment Certificate, and of course, your T4 Statement of Remuneration Paid (employers have until February 28, 2022 to produce T4 statements for employees).
You should also start thinking about different kinds of deductions, credits, and expenses that you can claim to reduce the amount of tax you need to pay. Things like child care expenses, donations and gifts, or tuition could be claimed if they follow the guidelines outlined by the CRA. To explore the different deductions, credits, and expenses outlined but the Canada Revenue Agency, go to https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/deductions-credits-expenses.html to view details.
The Government of Canada has many tools are resources available to you to help you prep for your 2021 tax return. For more information on this process, or how to navigate other tax situations, be sure to visit https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes.html.