Featured

Personal Tax Return Checklist

Here at Danielle’s SOS Financial we are committed to providing you with the largest tax refunds you deserve and finding every tax deduction you are eligible for.

To make sure you don’t miss something, and to help you get every deduction and credit you can, we’ve prepared this handy checklist.

Essentials and General Items

  • Current contact information, including SIN numbers, of the entire family
  • Last year’s tax return
  • Last year’s spousal return
  • Last year’s notice of assessments for the entire family
  • Key life events in recent years – marriage, child, new home, etc
  • Child care expenses
  • Investment income T5 slips
  • Medical, dental and other private health care expenses
  • T2202A for tuition and education amounts
  • Public transit passes
  • Details on any matrimonial or child support payments, if applicable
  • Direct Deposit information, if changed from last year
  • TFSA statements and contribution receipts
  • RRSP statements and contribution receipts
  • Confirmation on foreign property holdings
  • Information on any property, stocks or other assets bought and sold
  • T4E for income from Employment insurance
  • Charitable donation receipts
  • Interest paid on student loans
  • Political contributions

Employees

  • T4s, T4As, T4RSPs, T4RIFs and other tax slips
  • T2200 for Home Office eligibility signed by employer
  • Home Office expenses: utilities, mortgage, stationary, other purchases, etc
  • If eligible for motor expenses, details on kms driven for work
  • Professional dues, insurance, union dues (not reimbursed by employer)
  • Moving expenses (not reimbursed by employer)
  • Tools purchases documentation for trades people
  • If commissioned salesperson, documentation for advertising, promotion, meals & entertainment and other expenses
  • New motor vehicle purchase details and other motor vehicle expenses
  • Legal expenses related to employment or child support amounts

Small Business Owners & Sole Proprietors

  • Software backup of bookkeeping records
  • Manual records of sales and expenses if books are not kept in a software
  • Partnership agreement, if applicable, along with profit sharing perentage
  • Vehicle expenses used in business – vehicle cost, mileage, maintenance, etc
  • Key contracts and agreements summary or soft copy of conracts
  • Details on capital assets purchased and sold during the year
  • Home office expenses, similar to employment section above
  • Inventory count records – last year and end of current year, if applicable

Rental Property Owners

  • List of units owned with address and ownership percentage
  • Expenses on each unit, categorized by expense type – such as, mortgage interest, real estate agent fees, utilities, cleaning fees, management fees, property tax, office expenses, etc
  • Copies of all rental agreements
  • Rental income details for each unit
  • Details on capital additions (greater than $500) categorized by unit
Featured

Bookkeeping vs. Accounting

Did you know we do both!

–Bookkeeping vs. Accounting–

If you’re a small business owner, you might be wondering if you need to get a bookkeeper or an accountant – or both.

And now that you understand the need for bookkeeping, you’re might be wondering, “How does it differ from accounting?”

Good question.

The words “bookkeeper” and “accountant” are often used interchangeably. However, there are some key differences that determine the main responsibilities of each role.

–Bookkeeping is a Subset of Accounting–

37883981_2140118849644035_5128132333710344192_n.jpgAn accountant, professional bookkeeper, or an employee of the business can do your bookkeeping.

If you’ve just started a business, chances are you’ll be doing the bookkeeping yourself.

This is no bad thing. When launching a new business venture, it’s crucial that you have an intimate grasp of your financial situation. What better way than to do the bookkeeping yourself?

Essentially, bookkeepers take care of the day-to-day financial work.

They keep detailed and accurate financial accounts and use this financial clarity to help make informed business decisions.

–Accountants are Financial Experts–

Accountants are usually qualified, registered members of a statutory association. So they often have titles like CPA (Certified Public Accountant) or CA (Chartered Accountants).

That’s how they can charge the big bucks.

These experts will use the accounts provided by the bookkeeper. They focus on analyzing the transactions to provide financial advice.

They’ll also use the information in the accounts to file tax returns and other reports.

Whereas bookkeepers handle the day-to-day financial tasks, accountants often step in on a quarterly basis to provide advice and make adjustments.

Before you call CRA – Seeking Updates

NOTICE: COVID-19: Objections, appeals and taxpayer relief 

Dispute resolution and taxpayer relief services are resuming: [CRA and COVID-19: Resuming Business Activities]


Every month, the Canada Revenue Agency (CRA) updates how long it will take on average for an appeals officer to be assigned to an objection and for the CRA to resolve it.

The number of days for the CRA to resolve an objection includes all the time that the objection is within the control of the Government of Canada but excludes the time it takes taxpayers to provide more information, if needed, to support their objection.

Objections are resolved on a case-by-case basis. There are three levels of complexity for objections – low, medium, and high. The timelines for each level of complexity are listed below.

Note: Our processing times may be longer than usual due to a backlog of certain workloads that accumulated during the COVID-19 situation from March 2020 until the full resumption of all objections program activities.


Income Tax Objections:

Low complexity income tax objections

Low complexity income tax objections resolved in April 2021 were completed in an average of 99 days from the date the objection was submitted. These objections include issues with individual tax credits, personal deductions, the Canada child benefit, and the disability tax credit.

The majority of low complexity income tax objections now being assigned to an appeals officer were received in January 2021.

In the 2020–2021 fiscal year, the CRA met its low complexity objections service standard 76% of the time.*

Medium complexity income tax objections

Medium complexity income tax objections resolved in April 2021 were completed in an average of 303 days from the date the objection was submitted. These objections usually include issues with business expenses, partnerships, more complex individual income tax issues, and small and medium corporation (T2) related issues.

The majority of medium complexity income tax objections now being assigned to an appeals officer were received in June 2020.

In the 2020–2021 fiscal year, the CRA met its medium complexity objections service standard 71% of the time.*

High complexity income tax objections

High complexity income tax objections take much longer to resolve than other objections because of their technical content. These objections usually involve large corporations, complex business transactions, international transfer pricing, general anti-avoidance rule assessments, and tax avoidance schemes.

They represent only 2% to 3% of the CRA’s total Objections Program workload. On average, it may take over 690 days to resolve high complexity income tax objections.

During this time, CRA representatives are in regular contact with the taxpayers who submitted the objections.

Status of your objection

If you or your authorized representative have questions about the status of an objection that you have already filed and you do not have the contact information for your appeals officer, call the objection enquiries phone line.

Objection enquiries toll-free line: 1-800-959-5513

Objection enquiries when calling from outside of Canada (collect calls accepted): 613-940-8563

*Please note that our processing times for the 2020–2021 fiscal year were influenced by the coronavirus (COVID-19) pandemic.


GST / HST Objections

Low complexity GST/HST objections

Low complexity GST/HST objections resolved in April 2021 were completed in an average of 106 days from the date the objection was submitted.

Few GST/HST objections are considered low complexity. They may involve issues such as the CRA making GST/HST assessments when returns have not been filed.

The majority of low complexity GST/HST objections now being assigned to an appeals officer were received in July 2020.

In the 2020–2021 fiscal year, the CRA met its low complexity objections service standard 76% of the time.*

Medium complexity GST/HST objections

Medium complexity GST/HST objections resolved in April 2021 were completed in an average of 330 days from the date the objection was submitted.

These objections include issues with new housing rebates, input tax credits, and imposition of GST/HST.

The majority of medium complexity GST/HST objections now being assigned to an appeals officer were received in July 2020.

In the 2020–2021 fiscal year, the CRA met its medium complexity objections service standard 71% of the time.*

High complexity GST/HST objections

High complexity GST/HST objections take much longer to resolve than others because of their technical content. They involve large corporations, complex business transactions, and general anti-avoidance rule assessments. They represent only 2% to 3% of the CRA’s total Objections Program workload.

On average, it may take over 500 days to resolve high complexity GST/HST objections. During this time, CRA representatives are in regular contact with the taxpayers who submitted the objections.

Status of your objection 

If you or your authorized representative have questions about the status of an objection that you have already filed and you do not have the contact information for your appeals officer, call the objection enquiries phone line.

Objection enquiries toll-free line: 1-800-959-5513

Objection enquiries when calling from outside of Canada (collect calls accepted): 613-940-8563

In the province of Quebec

Revenu Québec administers the GST in Quebec. If the physical location of your business is in Quebec and you don’t have the contact information for your appeals officer, you can get information on the status of your GST/HST objection by contacting Revenu Québec directly unless you are a person that is a selected listed financial institution (SLFI) for GST/HST or QST purposes or both. If you are a SLFI, go to GST/HST and QST – Financial institutions, including selected listed financial institutions.

*Please note that our processing times for the 2020–2021 fiscal year were influenced by the coronavirus (COVID-19) pandemic.

CRA Processing Times – Links

Self Check CRA processing times HERE

Please note that the coronavirus (COVID-19) pandemic may influence our standard processing times. The Government of Canada has announced a series of tax measures to help support those affected by the COVID-19 virus, some of which affect tax-filing and payment deadlines.

Find out the standard processing times for tax returns and other tax-related requests sent to the Canada Revenue Agency (CRA). The information provided here is the same you would receive by calling the CRA.

If you would like to learn more about our online services, go to [E-services ].

T2 Tax Returns [Submitted April/May 2021] Roughly 5-6 Weeks from the date it is e-filed

T1 Tax Returns [Submitted May 2021]: Roughly 2-3 Weeks from the date it is e-filed


Free accounting software

Banish those messy spreadsheets and towering stacks of invoices with these free accounting software options. There’s no need to manage reams of paper and total up receipts on a recurring basis, just hand the job over to software.

ZipBooks

Key features

Generate custom invoices and quotes, handle your tax calculations automatically, and track your income and expenses with ZipBooks‘ free plan. ZipBooks lets you accept payment over PayPal or credit card, making it equally suited for freelancers and larger businesses.

Why ZipBooks?

ZipBooks is a beautifully simple app in an industry that has long been in need of the same focus on usability that comes with something like a CRM or email tool. For a fresh, simple feel and a product that scales with your business size, ZipBooks is the one to go for.

Wave

Key features

Wave isn’t just an accounting tool. Its services cover payment processing and payroll as paid add-ons in case you need these systems to stay compliant in your state or country. Wave offers reporting, income and expense tracking, tax calculations and invoicing — all for free.

Why Wave?

Unlike ZipBooks, Wave is completely free for accounting services. It makes its money with payroll and payment processing add-ons, which is great if you need that too.

Pandle

Key features

Pandle was created for UK-based small businesses, so unlike Zipbooks and Wave, it complies with UK-specific laws and regulations. It features invoicing, VAT management, banking, and comes equipped with a full suite of accounting tools.

Why Pandle?

Businesses that need to obey UK tax laws should go with Pandle to ensure compliance.

Free payroll tools

Manage your company payroll, benefits, and tax compliance with these two free tools. Since different countries have different compliance laws, I have included options for both the U.S. and the U.K.

Payroll4Free

Key features

For U.S-based businesses that pay under 25 employees, Payroll4Free is completely free of charge. It lets you pay employees and contractors, set up tax calculations and forms, track vacation time, and let you generate detailed reports.

Why Payroll4Free?

Small businesses in the U.S. with fewer than 25 employees get payroll managed for them, absolutely free, with this tool.

HMRC’s Basic PAYE Tools

Key features

This tool for U.K businesses from HMRC allows users to execute the majority of payroll tasks, including tax calculations and National Insurance. Its features include sending Employer Paymeny Summaries (EPS), Earlier Year Updates (EYU) and National Insurance Number checks.

Why PAYE Tools?

HMRC’s PAYE tools are specifically for U.K businesses, so in order to comply with national regulations this software (or a paid equivalent) will be necessary.

Public Notice: Apology and Explanation

Attention all customers, affiliates, associates, friends, and family of Danielle’s SOS Bookkeeping Services, I hope I may implore you to please kindly take a few minutes to read this service update. We stand here May 2, 2021 and you are all overdue for an explanation in regards to the status of Danielle’s SOS Bookkeeping Services. There have been many rumors, nasty stories, and bad publicity about my company popping up all over social media and it is time I cleared them up. My hope is that moving forward we can mend bridges and work to clean up TLC and catch up on your files if needed and re-form our business partnerships moving forward. 


Timeline:

I will first start by providing a timeline and an explanation for each time period. 

December 2020

At the beginning of December, I had to make a very difficult decision to let go of several of our staff members and an external contractor. For those who have been dealing with us for many years, you will know their names. If you were previously dealing with them in any capacity inside my business this is the official notice that they are no longer part of the business. The parting of ways came about due to budgetary restrictions, and a few personal conflicts. There have been no fraudulent activities or crimes that have taken place to warrant the dismissal. One was our senior bookkeeper handling a portion of our corporate book of business, another, was our Personal Tax specialist and the third was contracted to assist with Payroll, Accounts Payable and Accounts Receivables. These roles have been absorbed by me at the moment as we look to bring on new staff.

January 2021

For the last 4 months, I have been driving the ship along with our 2 remaining staff members Mohamed and Jocelyn. Additionally, we have continued to operate with our external partnership with Peter Friesen who assists me in preparing our client’s financial year-end documents and corporate tax returns.


Meet our current staff:

Mohamed, is currently working in a bookkeeping capacity taking care of his portion of our book of business. As of May 6th Mohamed will be working virtually for us from another location. We are so pleased that he has a chance to continue doing his post secondary studies while spending some time with family during these hard times. He will be best reached by email. Phone calls will be returned weekly around his split schedule of working and studying. This will be given out to his clients as soon as everything is finalized. 

Jocelyn, has personally spoken with 99% of you, as she is our lead administrator, receptionist, and office coordinator. She has been working diligently in this role for the last 2 ½ years. She is responsible for greeting and speaking to each one of you who comes to the office physically and she has largely been the contact person on the phone and behind the admin company email. I would like to take a moment to acknowledge how much she has done for the company this year and I would ask that extra kindness and understanding is extended her way when reaching out to the office. She may be dealing with over 100 clients per day and has managed to juggle pretty much all physical and digital paperwork coming in and out this tax season. 

Peter has been my external business partner since I started my business back in 2014. He has spent the last 30+ years working hard to provide clear, concise, accurate and affordable accounting services to Edmonton and area clients and has been a vital part of my business’ successes over the last 7 years. As needed, in addition, we have a small crew of contractors also assisting with completing personal tax returns this year.


Personal Explanation

Now comes the part where I explain what has been going on with me. First, let me say that if I have not had the pleasure of meeting with you in person I want to extend a sincere thank you for supporting my business and trusting us with your financial and taxation needs. Since I started this business back in 2014 I have worked hard to cultivate strong connections with all of our clients. Our mission statement has always read “Do not strive to be successful, strive to be valuable.” This fundamental idea allows us to focus on providing not only basic accounting, bookkeeping, and personal taxation services but also allows us to spend time and invest in educating our clients about how to make their money and finances work for them. We pride ourselves in having access to tools, programs, and resources that are freely available to our clients which help contribute to better financial planning, long-term strategizing, and business development.

Up until recently, this has been a strong statement I have been dedicated to upkeep. However, in the last few months, this has noticeably slipped with longer deadlines than anticipated on client returns, lags in communication, and a tight-lipped mentality where little to no details have been disclosed, leading you to feel we are not living up to our prior established “value”. This is incredibly understandable and I humbly accept that some of you have had your trust broken and our business relationship will not continue forward. I stand for everyone’s right to choose who they deal with at any time and there is no resentment. I do need to clarify though, we are not in the business of holding client paperwork hostage, threatening customers, or purposely ignoring and avoiding our clients despite the claims made by former clients online. It is disappointing to see people lie so blatantly about us online. Yes, we have had moments of falling behind, yes, our communication has been unacceptable, but we have never gone out of our way to cause harm to our clients like this.

I am the first person to say I am very humbled by my mistakes and shortcomings in dealing with the current situation and sincerely apologize for the poor service.” This ends now. Moving forward we are more comitted than ever to get back to a place of “Value” for each one of you.


Before I continue I want to state clearly that I normally do not mix personal and business life is at all possible. When we own businesses it is so easy to meld your prior personality and ambitions into the business and you can really lose yourself. In my situation, I can honestly say the personal dealings I am handling have reached a level as I’ve never experienced before. Please be aware the next few paragraphs will outline a few unpleasant activities and a few topics that are uncomfortable for most on the best of days. I can empathize but I feel due to the severity of the backlash we have experienced on social media, in order to restore any part of our reputation I must make it clear why I would choose to neglect my business in favor of external affairs. 

Since December I have been working with the Edmonton Police Service in partnership with the Zebra Center, to establish several cases and seek judgment against my ex-boyfriend for physical, sexual, and emotional abuse, not only in regards to myself but more importantly my two young daughters. We only recently uncovered the latest portion regarding our daughters in early March. Due to the highly sensitive nature of these accusations and activities, I have not been able to disclose or discuss any details with any of you. This has been a truly horrendous experience and despite my best efforts, I have simply not been able to fully juggle our extremely (fortunately) busy business and the new and ongoing obligations in regards to these matters. 

I have had many questions regarding why some of our social media accounts were taken offline about a month ago and the simplest answer I can give you is that it was a decision based on legal counsel as my ex-boyfriend has also been targeting and attempting to attack my business and the reputation I have spent so long creating in this city. Removing platforms for hate speech and death threats was the only sensible option. 

Currently offline: Facebook Business Page, Facebook Tax Group,Twitter (Dormant) and Instagram (dormant). 

Currently online: Our Website.

We hope to have our social media back up and running within the next month. This timeline will depend on the progress of the external criminal investigations. The safety of my staff, family and close friends is my top priority.

This information has been shared for administrative purposes only. I am not available to answer questions or concerns regarding my personal matters. This is an ongoing police investigation and no details will be disclosed further to this. If you would like to speak to me about your business and/personal taxes you can coordinate with Jocelyn by calling 587-754-2910 or emailing admin@daniellesosbookkeeping.com


I am sorry

I am truly sorry for the major inconvenience it created for all of you. I am able to finally post a public update and due to the large volume of clients, we serve I chose a public forum as I thought it would be the cleanest way to share this information. We are still dealing with this issue and don’t anticipate a close to it any time soon however, I am refocusing and recommitting back to my business starting immediately. I have worked too hard to fold this business and I am done letting all of you down. I am re-evaluating my schedule, reviewing all of your deadlines, and working hard to get another few individuals hired in our office who can assist with getting some of our additional workloads off my plate so I can go back to assisting all of you in my regular capacity.

We have open job postings on Indeed, Facebook & LinkedIn. I will post links to those shortly.

We are currently hiring for “Accounting Technicians” (2 openings)

The restaffing process is not instantaneous. As an office, we are hoping to have another dose of patience from you as we keep working away on completing personal income tax returns, and corporate year ends.


Deadlines – Interest & Penalties

The April 30, 2021 deadline may have passed, however, CRA accepts personal income tax filings all year. While they have not extended the deadline despite many desperate pleas from accountants and tax preparers Nationwide, they have committed to postponing the “INTEREST ONLY” portion of any 2020 tax filings for those who claimed at least one COVID benefit payment in 2020. (See full release here with rules and eligibility) https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes/pay-taxes-owing.html 

The next upcoming deadline is the sole proprietorship deadline of June 15, 2021. If you or your spouse have a small business in your household you qualify for the delayed filing deadline.

If you normally get a refund, there is NO tax deadline for you. CRA interest & penalties only apply if you owe taxes.

Please see below some resources in regards to how penalties and interest are calculated, and finding relief if you qualify:


Tax Payer Relief

If you are in need of assistance with putting in a claim for relief of interest and penalties please let me refer you to Frank Flynn. Frank’s business is all about assisting Canadian tax payers find relief of CRA interest and penalties and I can personally vouch for him being the best in the business. The best part is that his rates are incredibly reasonable.

Links: https://taxpayerreliefletters.ca/about-us/

“I understand that not everyone has the time, legislative knowledge, or language skills to put together a compelling taxpayer relief case. I can help.”


Moving Forward: Next Steps

Thank you if you have managed to reach through this entire document. I am grateful to have your time and attention. I am truly sorry that this year could not be a bit more like business as usual considering the crazy year we had in 2020. I am very optimistic, however, that moving forward we will rapidly adjust and move back into a place of trust, dependability and efficiency we have been known for in the past. 

We understand the phone lines have been busy and our inbox has been full repeatedly. This is simply due to the high volume of individual personal income tax return clients we service and it is the thick of tax season. In addition to our regular workload there have also been over 70 changes to personal taxes. We have had to learn these new programs and where last year it took us roughly We can get up to 200 calls in a day and our emails are also very busy. I would urge you if you have sent an email and/or left a voicemail to please be patient for a few days while we work through everyone’s requests and inquiries. 

May 2021: 

I am pleased to announce we have partnered with a local Edmonton company that will be assisting us with our administrative phone and email tasks. This means when you call in it may not be Jocelyn who answers your calls now. She is however still the hands-on person at the office. We have listened to your concerns and this is the simplest way to get more contact time in with all of you. 

Our website is still a great way to contact us as well. I personally again want to say thank you for your patience and understanding as we continue to navigate this as the situation unfolds. 


Final Note

On my personal Facebook I have also posted information about my ex partner. He is currently under investigation and has been charged with several different crimes pertaining to the abuse of my daughters as of April 15, 2021. He is prohibited as a condition of release pending court of staying 100 meters or more away from myself, my family, and my daughters. Additionally, he is not to be within 100 meters from any parks or recreation facilities that would have kids under 16 present. 

With COVID already devastating our families and taking our loved ones away we hardly need another pandemic on our hands. This is a very serious pandemic sweeping our country in the last few years and we need to take a stand to stop it from happening to anyone else. Our kids are our future, they deserve the best chance, resources, tools and education we can reasonably afford to provide them. 

Here are some links for more information and how to help stop this current fight:

From an Accountant’s perspective – May 2021

Posted Apr 26, 2021 6:37 am PDT – Source Article HERE

Last Updated Apr 26, 2021 at 6:42 am PDT

  • An online petition from accountants is asking the Canada Revenue Agency to extent the income tax deadline
  • Accountants say they are overwhelmed with filings, including new COVID-19 relief tax breaks
  • CRA has said it is not extending the deadline, despite doing so last year

More articles like this:

VANCOUVER (NEWS 1130) – Accountants from across the country are pleading to the federal government for an extension on this year’s tax deadline because the pandemic has stretched resources and added new tax rules.

A change.org petition with more than 75,000 signatures is calling for Canada Revenue Agency to extend the deadline to file from April 30 to June 15. Many signatures are from people who say they are accountants and are physically and mentally exhausted from a year that has been filled with non-stop work and new tax breaks to navigate.

“Small accounting firms have really struggled and been overwhelmed,” income tax consultant Hugh Woolley said “For the past year with helping their clients. Prepare a lot of new materials, in addition to what the work they were already done, which includes wage subsidies and rent subsidies so these are taking huge amounts at a time, and they’re very high priority for their clients because they’re really the life line that’s keeping these businesses afloat.

Last year, the federal government extended the tax filing deadline to May 31, but officials have said this year, it will not be the case.

“During April, you know, it’s 18 hour days for most accountants, so you know you add on a little bit of a marginal extra bit of work and if you just can’t meet the deadline,” Woolley “I mean we’re always touching go to the last minute every year. So with this additional workload that’s been there, it’s it’s really impossible to meet these deadlines.”

Related articles

While Ottawa has said it is not extending the deadline, Quebec has taken a different approach by suspending penalties and interest on tax returns filed after the April 30 deadline for the entire month of May. On the CRA website it states, it is important to file on time if you receive COVID-19 recovery benefits, such as the Canada Recovery Benefit Canada Recovery Caregiving Benefit or Canada Recovery Sickness Benefit. Failing to do so could mean your payments could be stopped.

“[Accountants are] very scared their clients are going to be subject to penalties, and they’re very scared that their clients are going to hold them responsible for not getting their information done in time,” Woolley said. “And I think that’s why so many accounts are really really concerned and and and you know it, causing a lot of mental stress and anguish for them.”

Canada Revenue Agency did not return a request for an interview.

May 2021 Update: COVID-19 benefits and your taxes

The Canada Revenue Agency (CRA) is committed to putting people first and providing the income support that Canadians need during the COVID-19 pandemic. Please see below quick links to essential resources and FAQs.


T4A: Report COVID-19 amounts

CERB from CRA, CESB, CRB, CRCB, CRSB, provincial or territorial COVID-19 benefits, issues on T4A slips, report amounts

T4E: Report COVID-19 amounts

CERB from Service Canada, EI benefit payments, issues with your T4E slip, and how to report amounts

Interest relief if you received COVID-19 benefits

Interest relief for individuals with a taxable income of $75,000 or less in 2020 and received a COVID-19 benefit

If you meet all the eligibility criteria below, you will get interest relief on your 2020 taxes owing. You still need to file your tax return by the due date to avoid paying any late-filing penalties.

Eligibility criteria

Interest relief on 2020 taxes owing will be given if you meet all of the following:

  • Your total 2020 taxable income was $75,000 or less
  • You received at least one COVID-19 benefit in 2020:
    • Canada Emergency Response Benefit (CERB)
    • Canada Emergency Student Benefit (CESB)
    • Canada Recovery Benefit (CRB)
    • Canada Recovery Caregiving Benefit (CRCB)
    • Canada Recovery Sickness Benefit (CRSB)
    • Employment Insurance (EI) benefits
    • Provincial or territorial emergency benefits
  • You filed your 2020 income tax and benefit return

You need all the above to be eligible for interest relief.

If you do not meet the criteria, review other options in Taxpayer relief provisions.

If you meet all the criteria

If you meet all eligibility criteria and have filed your 2020 tax return, the CRA will automatically apply interest relief on your 2020 taxes owing.

You will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022.

Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.

Late-filing penalties still apply

File your tax return early or before the due date to avoid being charged a late-filing penalty and disruption of your benefit and credit payments such as the Canada Child Benefit (CCB) and the GST/HST credit.

The late-filing penalty is 5% of your 2020 balance owing, plus an additional 1% for each month you file after the due date (up to a maximum of 12 months). Penalty charges still apply and are different from interest charges. Penalty charges are not included as part of this interest relief.

The CRA can work with you and find flexible options to pay your balance owing. Find ways to pay your 2020 taxes owing.

Paying your 2020 taxes owing

Pay taxes you owe, options if you cannot pay, or arrange to pay over time

If you cannot pay in full

If you are not able to pay the full amount:

  • file on time to avoid paying a late-filing penalty
  • make a partial payment to reduce the amount of interest you need to pay on unpaid amounts

You can set up a payment arrangement to give yourself more time and flexibility to repay what you owe. For details: Arrange to pay your personal debt over time

If you are unable to pay, you can discuss your options with the CRA.

Repay COVID-19 benefits

Why you may need to repay a COVID-19 payment, how to return a payment, and how it impacts your taxes

COVID-19: Objections, appeals and taxpayer relief

Dispute resolution and taxpayer relief services are resuming.

CRA and COVID-19 Resuming business activities

Video: Taxpayer Relief

Cancel or waive penalties or interest

The Minister may grant relief from penalty or interest when the following types of situations prevent a taxpayer from meeting their tax obligations:

  • extraordinary circumstances;
  • actions of the CRA;
  • inability to pay or financial hardship;
  • other circumstances

For more information about the circumstances that may warrant relief from penalties or interest, see Cancel or waive penalties or interest. To submit your request for relief, we recommend you use Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest.

Late, amended, or revoked elections

The Income Tax Act and its Regulations contain many election provisions that give you the opportunity to decide on an alternative tax treatment in conducting your financial affairs for income tax purposes. Most election provisions do not:

  • permit you to file an election once the due date for making the election is missed; or
  • give you the ability to modify or cancel an original election that was filed on time.

For details about the income tax elections that can be filed late, amended, or revoked, and how to send your request, see Late, amended, or revoked elections.

Refund or reduce the amount payable beyond the normal three-year period

For individuals (other than a trust) and graduated rate estates, the Income Tax Act sets a three-year limitation period from the:

  • end of the tax year to file an income tax return to claim a tax refund
  • date of the original notice of assessment to request an adjustment to an assessment issued for a previous tax year

As of January 1, 2016, a testamentary trust that is not a graduated rate estate can no longer file an income tax return or ask for an adjustment for a refund or reduction in tax payable after the normal three-year period has expired for the 2016 and later tax years. Testamentary trusts can file a return or ask for an adjustment for the 2015 and previous tax years.

To get more information about filing an income tax return to claim a refund or requesting an adjustment to a return beyond the normal three-year period, see Refund or reduce the amount payable beyond the normal three-year period.

Public service employees affected by Phoenix payroll system issues

If you believe that the penalties or interest assessed by the Canada Revenue Agency (CRA) for your 2016, 2017 or 2018 tax year are a direct result of Phoenix payroll system errors, you can submit a claim under the Phoenix Claims Process administered by the Treasury Board of Canada Secretariat. Each claim will be considered on its individual merits and settled based on valid receipts and other supporting documentation.

If you are not reimbursed through the Phoenix Claims Process for the penalties or interest assessed by the CRA, you can submit a request for review under the taxpayer relief provisions. Go to Cancel or waive penalties or interest for more information. Be sure to include the decision letter from your department or agency and any relevant documents when submitting your request.

For more information on the tax implications of Phoenix payroll issues, go to Frequently Asked Questions.

The Canada Revenue Agency (CRA) administers legislation that gives the Minister of National Revenue discretion to:

  • cancel or waive penalties or interest
  • accept certain late, amended, or revoked income tax elections
  • issue a refund or make an adjustment to refund or reduce tax payable beyond the normal three-year period for an individual, a graduated rate estate, and for certain tax years, a testamentary trust

This legislation is commonly called the taxpayer relief provisions.

Publications

Personal income tax: Get ready to do your taxes

Find out what’s new for 2020 and your filing and payment due dates, gather your documents to report income and claim deductions, and choose how you want to file and send your completed tax return to the CRA.

There are still 2 more weeks until April 30, 2021’s deadline! if you’re still waiting to file your taxes make sure to check out all the essential CRA links you need here!

Understand your rights as a taxpayer and who should file a tax return.

Steps to get ready for 2020 taxes

  1. Find out what’s new
  2. Be aware of key dates for 2020 taxes Filing and payment due dates for taxes, contributions, instalment payments, and any amounts you may owe Filing dates for 2020 taxes
    • Apr 30, 2021: Deadline to file your taxes
    • Jun 15, 2021: Deadline to file your taxes if you or your spouse or common-law partner are self-employed
    Payment date for 2020 taxes
    • Apr 30, 2021: Deadline to pay your taxes
  3. Know what to report and claim
    • Report your income What to report as income, including COVID-19 benefits, self-employment income, foreign investments, assets, or other earnings
    • Claim deductions, credits, and expenses Find tax deductions, credits, and expenses such as home office expenses for employees to reduce your tax owing
    • Get your tax slips Understand your tax slips like T4 and T4A, when you will receive them, and how to get copies
  4. Keep your CRA information up-to-date
  5. Find a way to file your taxes File your taxes online or by paper, or find other options to have someone else complete them for you:
    • Certified tax software (electronic filing)
    • Authorize a representative
    • Community volunteer tax clinic
    • Discounter (tax preparer)
    • Paper tax return
    • Automated phone line (File my Return)
  6. Send us your completed tax return File your tax return electronically or send your completed tax return by mail
  7. Make a payment or wait for your refund

After you file your tax return

Get your notice of assessment, find out the status of your refund, or make a change to your tax return

CRA 2021 Personal Tax tips

Looking for quick help with your Personal Tax Filing this year? Check out CRA’s handy Tax Tip list below!

  1. Do you file your taxes on paper? Due to COVID-19, paper filing may delay your assessment
  2. Seniors: Tips to help you this tax season!
  3. Students: Put more money in your pocket with benefits and credits!
  4. Tax preparers and professionals: Here’s what you need to know for the 2021 tax-filing season
  5. Can I file my tax return by phone?
  6. What you need to know for the 2021 tax-filing season
  7. Tax information for Indigenous peoples – Canada.ca
  8. Get free, virtual help with your taxes!
  9. Questions about your T4A? Here’s what you need to know
  10. Donate to a charity? Claim your tax credit!
  11. New to Canada? Learn about the benefit of doing your taxes
  12. Going digital makes it easier and safer to do your taxes!
  13. Did you buy, build, sell or renovate a home in 2020? Here’s what you need to know
  14. Eight things to remember at tax time
  15. Before you call; How to get the answers you need during the 2021 tax-filing season
  16. Are you self-employed? Know your tax obligations
  17. Tax information for northern residents
  18. Last-minute tax-filing tips
  19. Are you a social media influencer? Here’s what you need to know
  20. Do you work in the sharing economy? Here’s what you need to know
  21. There is still time to file your taxes by April 30, 2021

April 15th CRA Personal Tax Update

Quebec Tax Filing Deadline Extended to May 31st

On April 15, 2021, Revenu Quebec announced that their tax filing and payment due date has been extended to May 31, 2021.

Federal Tax Return Deadline Still April 30th

Although federal tax returns still must be filed by the Friday April 30, 2021 due date, some (not all) taxpayers who received CERB, CESB, CRB, CRCB, CRSB, EI benefits, or similar provincial emergency benefits will not required to pay interest on any outstanding tax debt for the 2020 tax year until April 30, 2022.

For more information see:

New Features: QuickBooks Online Q2

New features in QuickBooks

Everything you need to know about our latest features and updates.

NEW features as of: January-March 2021

Employee Self Setup

for: QuickBooks Payroll

Save time and improve accuracy with self-setup. New employees can now provide their information directly via the QuickBooks Workforce portal, and have ongoing access to their paystubs and T4/RL-1.

Learn more


We’ve also added these features:

Cash Flow Planner enhancements

You can now forecast cash flow up to 24 months ahead. You can also add recurring transactions to the cash flow planner to get a more accurate view of your finances. To top it all off, you can download your forecasts as a PDF to easily share with team members, stakeholders, or your accountant.

Year-end forms filing tool

Track contractor payments, run reports, and file T4A and T5018 slips right from QuickBooks Online—that means you can generate and file contractor tax forms all in one place. Learn more

Work-papers now in the left navigation

For: QuickBooks Online Accountant

Workpapers is now accessible in the left navigation under Books to Tax within your client’s QuickBooks Online file. Workpapers offers accountants and bookkeepers year-end tools for their client engagements. Keeping track of documents, reviewing financials, and preparing financial statements is all in one place.Year-end tasksQuickBooks Online Accountant

Coming soon: we’re adding a new year-end task list in Workpapers so you can collect and organize all of your year-end to-dos. Status flags will show what tasks are in progress, completed, or waiting to be done. Having your tasks right where the work makes it easy to keep track of where you’re at and easily show your progress with your engagement.

Client letters

For: QuickBooks Online Accountant

Client letters are now available in QuickBooks Online Accountant. With this new feature, you can now create your client letters in the same place you do your books to tax work — simplifying your year-end process. Check it out


Payroll overview page

QuickBooks Payroll

The overview page is your one-stop source for everything Payroll. Keep track of deadlines, important employee dates, and your most commonly used reports, forms, and settings all in one place. Visit the Payroll tab to view the Overview Page.

QuickBooks Time

TSheets time tracking software has been rebranded to QuickBooks Time. Sign up for an easy way to keep your team on task and add accuracy to your invoicing. Staff can clock on and off using any device and approved hours integrate with QuickBooks Payroll.

Learn more


New features as of: October-December 2020

Vacation Policy

QuickBooks Payroll

Automatically include each employee’s accrued vacation liability to your chart of accounts. Set up (or edit) an accrued vacation policy and QuickBooks will automatically calculate the associated annual hours.

Learn more


We’ve also added this feature:

Year-end contractor forms – reports

Track subcontractor payments, run reports, and get your T4A and T5018 forms ready to file.

Learn more