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Has COVID-19 derailed your tax preparation plans? Here’s a few things you should know before filing your 2019 taxes in Canada.
The recent events with COVID-19 have left us all in a difficult situation. Some of us have put off on filing our taxes and the Canadian government has extended filing dates to help ease the burden on us all. Some of the stuff that gets put out by the government can be a little confusing to understand. That’s okay, we’re here to help guide you through all the government lingo so you can understand what they’re trying to say. Let’s look at some of the changes that the Canadian government made for filing 2019 taxes below.
Extra time for individuals
The deadline for you having to file your taxes has been put off until June 1st of 2020. So you have up until then to actually do your taxes. This also stops any new income taxes or installments from building interest or penalties until August 31 of 2020. This is great because it gives you a bit of breathing room until things get back to normal.
Extra time for businesses
If you own a business or work for yourself you also get some nice breaks. You don’t have to file until June 30, 2020, and you can hold off on paying the GST/HST and customs for imports for amounts owed in the months of March, April, and May. Now while this all seems great for individuals and businesses there are some things to consider.
Some things to look out for
Let’s go over some unique situations that might apply to you.
- RRSP for the Home Buyers’ Plan– You can now withdraw up to $35,000 instead of $25,000
- Canada Emergency Response Benefit (CERB)– These payments are taxable so be mindful of that
- If you don’t owe taxes, should you file?– You might be missing out on tax credits and a decent return if you don’t file. Check with a tax professional to see if something like the Climate Action Incentive credit applies to you.
COVID-19 changed a lot for us and has put many in a difficult situation. Tax deadlines have been extended to give you a helping hand in dealing with this crisis.
Sometimes life happens and we need a little support to figure it all out. Visit our blog for more helpful tips on saving money and other interesting stuff.