Income Tax 2020: Everything You Need To Know To File

Before we get into the meat of this article, we must confess that it doesn’t contain everything you need to know to file; we’d need to know your exact financial situation to help with that. Rather, this is a quick overview of some of the most relevant tax changes in 2020.

New Deadline

This might be the most important change, and it’s why this article is being posted now. The tax deadline for 2020 is June 1st; this is an extension of about one month (the regular deadline is April 30th). This is as a result of the COVID-19 pandemic. Those of you who receive GST/HST cheques or the Canada Child Benefit who don’t file by the deadline may continue to receive those cheques until September 2020; read more here

New Tax Benefits and Credits

Depending on your exact financial situation, there are a number of changes to Canada’s tax policy that might lower the amount of taxes you owe or increase your tax return. These include:

  • Medical marihuana can now, in some circumstances, be claimed under the medical expenses tax credit
  • The Climate Action Incentive is now available in Alberta, Ontario, Saskatchewan, and Manitoba; the benefit amount should be larger than it was last year
  • The Home Buyers’ Plan withdrawal limit has increased from $25,000 to $35,000. You may also be eligible for the Home Buyers’ Tax Credit of up to $5000.
  • The Working Income Tax Benefit is now called the Canada Workers Benefit (CWB). The maximum benefit for individuals and families has increased, the reduction threshold has increased, and the reduction rate has decreased. You can learn more here

Filing Your Taxes

Some advice doesn’t change from season to season: Make sure you have physical and digital copies of any information relevant to your tax return. Scan T4s. Keep receipts. A paper trail is always essential.

There are all kinds of expenses that you might be able to claim on your tax return. Payments to post-secondary institutions, work-from-home expenses, medical expenses, and more, may entitle you to certain tax benefits. Naming all of these benefits here would be next to impossible.

That’s why it’s very important to get professional accounting services to help you with your taxes. Accountants know about benefits you didn’t even realize existed. What’s more, they can also assist you for future tax seasons by helping you plan your finances to access all the tax benefits you’re entitled to.