Note that tax filing deadlines have gone back to the usual dates (the COVID-19 extensions are not in effect for filing 2020 tax returns).
If you have received ANY COVID-19 government benefits (such as income under CERB or loans under CEBA) it is important to let us know, as many of these are taxable amounts. You may receive tax slips (T4A and/or T4E) for some amounts, but you may not receive a slip. If you received a loan under COVID-19 programs, the forgivable part of the loan is taxable as income in the year you received it. Please complete the section on page 4 of the tax package.
Eligibility for some COVID-19 benefits depended on having a certain level of income in the period before the application. If you applied for benefits having calculated your eligibility, you must let us know so that we can complete the tax return with this in mind. (As an example, we may not claim all of your expenses in order to align with your calculations).
ISSUES RELATED TO COVID —
Canada Revenue continues to review personal tax returns, usually after the original filing has been assessed. A review is not an audit; however, you must submit documentation to support deductions claimed. The most commonly reviewed categories include childcare, medical expenses, donations, and foreign taxes paid.
REMINDER: If you have foreign assets with a cost basis of $100,000 or more, it is important to file Form 1135 by your filing deadline (April 30th or June 15th). CRA levies a late filing penalty of $25/day, to a maximum of $2500. Form 1135 is filed separately from an individual tax return.
See CRA for details about this year's changes.
If you have a query relating to the Notices & Deadlines, feel free to browse through the FAQs. Alternatively you can contact us using the Website query form or call us.
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