It’s time to start thinking about your 2019 tax filing (if you’re not already), as the deadline is nearing. As a refresher, and because there are some changes for this year, here are some tips to file your income taxes for 2019.
Deadlines
The deadline to file your 2019 income tax return is April 30, 2020. Without filing on time, you can face late-filing penalties as well as interest charges that can add up daily. If you owe money that you cannot pay by April 30th, still file on time because you can avoid penalties if you at least file the return on time.
If you are self-employed, you have until June 15, 2020, to file your income tax return for 2019.
What you need to file
- Employment and income slips (ex: T4)
- Disability certificates, mortgage and property tax statements
- Rental income and expense information
- If you’re self-employed: income and expense information
- If you’re a student: tuition and interest documents
- Charitable donation receipts
- Childcare or medical receipts
“Income sometimes gets missed because people don’t understand how much they’ve earned on their investments each year,” he said. “This is generally the most common area where individual taxpayers are reassessed.” You should have received an annual statement from any investments you held in 2019 showing the total income you earned during the year and the total expenses incurred, such as investment adviser fees (which are deductible). [CTV News]
What’s new?
- CPP: You can now claim a deduction for any enhanced contributions to the Canada Pension Plan.
- Canada Workers Benefit: this allows families making below the income threshold to qualify for a tax refund. The maximum benefit is $1,335 for individuals with earned income of $12,820 or less. For families, the maximum refund is $2,335 with an income threshold of no more than $17,025.
- Home Buyers’ Plan: the RRSP withdrawal limit increased from $25,000 to $35,000. New homeowners also qualify for a $5,000 first-time buyers tax credit if they purchased a home in the tax year.
- Cannabis as a medical expense: if you have a prescription and receipts, medical cannabis is now considered a medical expense in most cases.
The best place to start is to login into My Account through the CRA website, which will you information on your account as well as important how-tos and instructions.
