It's that time of year again! Welcome to the 2020 Personal Tax Season. There is a lot of information to remember for tax time. The team at Clearly Financials would like to share some resources and reminders to help individuals and families in our local Edmonton community prepare for their 2020 personal taxes.
What's New?
Working from home?
Read our Working from Home (WFH) post for valuable tips
Received COVID-19 Aid?
Read our Tax Implications for COVID-19 Aid Recipients post for valuable tips
Relatively New (2019 Updates)
Climate Action Incentive
Residents of Alberta (as of December 31, 2020) may be eligible to receive the Climate Action Incentive.
Basic Amount $490
Spouse or common-law partner amount $245
Qualified dependant amount $123
Single parent's qualified dependant amount $245
Canada Training Credit
Starting in 2019, If you met certain conditions, you may have qualified to accumulate $250 per year (maximum of $5,000 per lifetime) to be used to calculate your Canada Training Credit. This credit may be used if you attend an educational institution in Canada, for a value of up to 50% of your eligible tuition.
Home Buyer’s Plan (HBP)
The maximum amount that you can withdraw from your registered retirement savings plan (RRSP) under the HBP increased to $35,000 for withdrawals made after March 19, 2019.
The HBP is now available to individuals who experienced a breakdown in their marriage or common-law partnership.
Reminders
Eliminated Credits
The child fitness, child arts, and public transit tax credits are no longer available.
The Federal Education and Textbook credits have also been eliminated. Existing credits may still be used or carried forward.
Unclaimed CRA Cheques
Setup your CRA “My Account” to look for unclaimed CRA cheques. The “uncashed cheques” link may be found in other “related services.”
Disposition of Principal Residence
Starting with 2016 tax returns, the CRA requires taxpayers to report the sale of their principal residence. This applies even if there was no gain on the property. It is very important to let our office know if you disposed of any real estate.
Clearly Financials Resources
2021 Personal Tax Rate Guide
Click here for a free copy of our updated 2021 Tax Guide. This valuable guide lists out the tax brackets for Alberta and is full of useful tax information.
Spreadsheet Templates
Visit our resources page for spreadsheet templates.
PDF Checklists
Our resources page has PDF tax checklists.
· Personal Tax Checklist – If you prefer to print out a copy rather than using our online form.
Canada Revenue Agency (CRA) Administrative Updates
CRA Processing Times
Click here to view CRA processing times.
CRA Telephone Numbers
Please note that telephone wait times have been extremely long so far in 2021. We recommend that you use your CRA “My Account” rather than calling the CRA if possible.
Individual Inquiries: 1-800-959-8281
Businesses Inquiries: 1-800-959-5525
COVID-19 Benefit Program Inquiries: 1-833-966-2099
Click here for the CRA’s Contact Page.
In Closing
We understand that these are challenging times for many individuals and families in Edmonton. We are working diligently at Clearly Financials to support our local communities through these unprecedented changes.
Realize that you are not alone, that we are in this together and most importantly that there is hope.
Follow us on Facebook for updates.
Clearly Financials offers Smart Accounting and corporate tax services to small businesses in Edmonton, AB. We provide a full suite of services including: Bookkeeping, Payroll, GST filing, Notice to Reader Financial Statements, and Corporate Tax Returns.
We enjoy helping small business owners get setup and hit the ground running. We offer Business Foundation Services which include business plan creation and business structure selection (e.g. to incorporate a business, or operate as a sole-proprietor).
Our Business Performance Management services help small business owners grow their companies, and their profits through goal-setting, budgeting and forecasting.
Our office is located in Old Strathcona in Edmonton, Alberta.
Disclaimer
This is a summarized version of complex matters that are rapidly changing. The preceding information is provided for general, educational purposes only. Speak with one of our team members if you have any questions about your specific accounting or tax situation.