Important things to remember for your 2021 Canadian tax return

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Here are a few important items that may be relevant to you for the upcoming 2021 tax filing.

Did you receive COVID or other benefits during the 2021 tax year?

2021 saw many individuals continuing to lose employment due to COVID all across Canada, as such many received COVID related benefits throughout the year. It is important to remember that these COVID related benefit payments are considered as income which must be declared on your 2021 tax return. The benefit related income will be reported on either a T4A or a T4E and must be included when submitting your tax return to CRA (Canada revenue agency). 

Were you required to work from home during the 2021 tax year?

As with 2020, there have been a lot of workers who have been forced to carry out their role from home offices. CRA has announced that it will continue to allow the simplified working from home deduction for the 2021 tax year. Good news, the deduction has increased to a maximum of $500 which is a $100 increase from the maximum allowed on the 2020 tax return. If you were required to work from home (in Canada) for longer than 4 weeks continuously then you will be able to make the simplified working from home deduction claim on your 2021 tax return. 

Did you arrive in Canada during the 2021 tax year?

Vancouver, Toronto and other cities around Canada are very popular for temporary foreign workers. If you are a newcomer tax resident to Canada it may be daunting filing your first tax return. Here are a few important things to consider when filing your 2021 tax return:

  • Record your date of entry to Canada to ensure your tax credits are correctly calculated
  • Receive T4s from all 2021 employers in Canada and report all income on your tax return
  • Tax filing deadline is April 30 (After this date CRA may impose late filing fees depending on your tax situation)
  • Make sure you file using an address to which you have access to the mail as sensitive personal information will be mailed to that address by CRA
  • Set up direct deposit refunds at the time of filing your tax return, this means you will never have to worry about cheques being lost in the mail

Did you emigrate from Canada during the 2021 tax year?

If you emigrated from Canada during 2021 here are a few important things to keep in mind:

  • You must file a tax return for the final tax year in which you earned Canadian income
  • An emigrant tax return cannot be filed online, it must be submitted to CRA via mail
  • CRA will mail refund cheques to foreign addresses
  • If you continue to receive GST/HST credits after the date you left Canada, it is most probable that CRA will request that these payments be returned to them.

(Ontario/Manitoba residents only) Did you make accommodation rental payments or pay property tax during 2021?

If you resided in Ontario or Manitoba during 2021 and paid rent or property tax on your accommodation, do not forget to apply for the credit on your 2021 tax return. The application for the credit is submitted as part of your tax return. 

Questions and tax filing services

If you have any questions about the items noted above, about tax in general, or would like assistance with your 2021 tax return filing, please do not hesitate to contact us via email – team@jackstaxback.com or stop by our Vancouver office located in the Vancouver West End**. Our team will be more than happy to assist you, tax doesn’t have to be taxing. 

**At the time of publishing our Vancouver office is not accepting in person meetings due to COVID-19. Please reach our team via email – team@jackstaxback.com