1.COVID-19 benefits
If you received COVID-19 benefits, such as the Canada Recovery Benefit, you should have received a T4A tax slip from the government. Even though some tax was withheld from those payments, you may still owe additional tax. If you find it difficult to pay this additional tax, you may wish to take advantage of the CRA’s expanded payment arrangements, giving you more time and flexibility to pay the tax owing, based on your financial situation.
2 .One-time payment for seniors
Seniors who were eligible for the Old Age Security pension in June 2021 and were born on or before June 30, 1947, received a one-time $500 payment in August 2021. This payment is taxable and you should have received a T4A slip from Service Canada for this amount. Service Canada has noted that some slips may have been delayed and will go out during the week of March 14, 2022. Some of you may have received an incorrect slip, with duplicate amounts in boxes 018 and 205. Please note that amended slips were issued.
3. Climate action incentive payment
Unlike prior years, if you’re a resident of Alberta, Saskatchewan, Manitoba or Ontario, you no longer claim your climate-action incentive on your tax return. Instead, you will receive your CAI payments in four quarterly instalments, starting in July 2022 (provided you file a 2021 return and qualify for payments).
4. Home-office expenses
If you worked from home in 2021 due to COVID-19, you may be eligible to claim a deduction of up to $500 for home-office expenses in 2021 using the temporary flat rate method. Or, you may be able to claim your actual expenses under the detailed method.
5.Automated callback service
If you get frustrated waiting on hold to speak to a CRA agent, a new service (“when available”) may allow you to request a callback. The service may be available to callers on the individual tax, benefits and business enquiry lines, but only at certain times of the day and only when wait times reach a certain (unspecified) length.
BONUS INFORMATION
6. Filing Deadline
While normally tax-filing deadline is April 30 (unless you are sole proprietor), you have until May 2 this year to file because April 30 falls on a Saturday. If you or your spouse or common-law partner had self-employment income in 2021, you have until June 15 to file your return(s). But remember - in either case, any amount owing must be paid to CRA on or before May 2, 2022.
7. Add your email address for My Account
As you may know, CRA had some problems with their myAccount. As of February 7, 2021, in an effort to prevent fraudulent access, you are required to provide the CRA with an email address to access the online My Account portal. This allows the CRA to inform taxpayers, in real time, of any changes made to their account to help ensure such changes are authorized. The CRA has also added multi-factor authentication for all users and you’re now required to enter a one-time passcode each time you sign into the CRA’s digital services.
