Last year was a whirlwind when it came to personal finances. The world pivoted into new ways of doing business, which led to many Canadians finding themselves working from home or even unemployed. Needless to say, there are a few new things to consider when filing your taxes for 2020.
In this blog post, will we take a look at everything you need to know about what you can and cannot file during tax season this year.
CERB & CRB
What does this mean? In short, if you received either the CERB or the CRB, you must claim this income on your tax return. You should receive a T4A slip stating how much you need to claim while filing. It’s important to note that the Canada Revenue Agency (CRA) did not withhold taxes for CERB payments; it is up to you to ensure you have set aside the appropriate amount to pay the amount owing.
Work from Home
Many Canadians were fortunate enough to be able to transition over to at-home workspaces. For those who were not already equipped with the appropriate makings for a functional home office, some employers made sure their employees were reimbursed for their expenses or given allowances. If you had to pay out-of-pocket, you can claim these expenses while filing your taxes.
To do this, your employer will need to provide you with a completed T2200 – Declaration of Conditions of Employment form. Once you have this, you’ll then be able to complete the T777 – Statement of Expenses form, which outlines your expenses.
If you did NOT have to purchase anything to be able to work from home in 2020, you’re able to use the Temporary Flat Rate Method to claim $2 per day worked from home if you worked more than 50% of the time from home for four consecutive weeks due to the COVID-19 pandemic.
Don’t miss the deadline!
Unlike last year, where the deadline was extended to accommodate the global pandemic and many uncertainties, individual tax returns and payments are due on April 30th, 2021.
Need assistance filing?
If filing your personal taxes this year sounds like a daunting task, Speedy Cash can help you! Starting on Monday, February 22, 2021, when you drop off your tax documents at any one of our 20 Speedy Cash locations across Canada before 1:00 p.m. PST, we’ll GUARANTEE same-day service! Visit our website, www.speedycash.ca/tax-preparation, to find out more details!
We look forward to assisting you with your return, and as always, if you need a payday loan, we’re here for you too!