The personal income tax deadline in Canada is fast approaching and we would like to share some information about CERB and CRB benefits for individuals and on CEBA support for business owners.
If you prefer reading, follow the transcription below the video. Enjoy!
Personal Income Tax deadline is at the end of april
Good afternoon everyone. It’s Irfanali here with RMI Professional Corporation once again. I know we are at the beginning of April and so I just wanted to provide some more information today on personal taxes.
I know we are still living in a pandemic world and we’ve been blessed here in Canada, where we have been given some benefits from the government so I’ll just quickly touch on the tax treatment for some of these benefits.
The first one is the CERB payment that we initially were qualifying for at the beginning of the pandemic. It was a $2000 a month benefit.
Taxes were not withheld on this money, but it is taxable income. Many people who did receive it may find themselves in a position where you’re not getting a significant refund or you might even owe some taxes when you do your tax filing, so just be prepared for that.
In September 2020, this benefit changed to the CRB. The dollar amount was still the same at $2000 a month, but taxes were withheld and so if you did get deducted and therefore you will be able to claim that on your personal taxes this year.
Just keep in mind as well the CEBA payments for businesses. The government has asked that you do take that as an income for the portion that will be grant, provided you repay the remainder of the loan by December 31st 2022.
That income portion has to be claimed in the year you received the loan, so for many people that will be in your 2020 fiscal year, so just keep that in mind when you’re preparing your corporate tax returns.
don't forget your regular tax deductions
Other than that, keep an eye out for your regular tax deductions.
Make sure you get your tax payments in on your personal taxes by the end of April. For many people that is also the filing deadline.
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