2020 Tax Filing Advice from your Edmonton CPA
2020 Tax Filing in a Pandemic can be hard with CERB, and other government grants
Filing your Personal Income taxes for 2020, what you need to know:
If you received a subsidy, it is important to make sure you are claiming properly. Let’s set up a time to discuss this year’s tax filing.
The Basic Information You Need to Provide:
- Name, address, date of birth, social insurance number (SIN), province of residence on Dec 31, 2020, (date if changed in the current year).
- Personal status – single, married, common-law, separated, divorced, or widowed. Date of change.
- List of dependents/children including their income, birth date, and SIN.
- Details for residence in a prescribed area which qualifies for the Northern Residents Deduction.
- Details on 2020 income tax instalments, or payments of tax.
- 2019 Notice of Assessment/Reassessment
- Details of foreign property if over $100,000 Cdn
Benefits or Subsidy Documents
- Canada Emergency Response Benefit CERB
- Canada Recovery Sickness benefit CRSB
- Canada Emergency Wage Subsidy CEWS
- Canada Caregiving benefit CRCB
- Canada Emergency Rent Subsidy CERS
- Canada Recovery benefit CRB
- Canada Emergency Student benefit CESB
- Canada Emergency Business Account CEBA (forgivable portion)
Additional Documents That May Be Needed:
2020 Tax Filing Deductions:
T2200 Declaration of Conditions of Employment signed by employer with invoices and receipts
Expenses for self-employment (home office, business kilometres and total kms)
Working from home
Option 1 – Flat Rate Method (Employees Only)
Employees that worked from home more than 50% of the time for at least four consecutive weeks in 2020 due to COVID-19, and were not fully reimbursed for their expenses, can deduct $2/day that they worked from home. Please provide the number of days you worked from home if you met this test. No employer certification is required.
Option 2 – Detailed Method (Employees and Non-Employees)
For expenses related to working from home to be deductible under this method, one of the following has to be met:
- The home was where the individual mainly (more than 50% of the time) did their work (for employees, this test can be met for a four-week period); or
The individual used the space exclusively to earn business/employment income, and used it on a regular and ongoing basis for meeting clients, customers or other people in respect of the business/ employment. Employees must also provide either a T2200 or T2200S (if no other employment expenses are claimed) from their employer.
If these tests are met, even for a portion of the year, a reasonable claim can be made.
To make a claim, provide approx. square footage of work space versus other space. Provide the period that you worked from home and expenses incurred that related to working from home. Such expenses include, for example, home internet access fees, rent, utilities, and office supplies.
Tax filing and payment date extensions
Individuals:
- Personal tax filings are due April 30, 2021
- Self-employed filing date is June 15, 2021
- Payment date is April 30, 2021 for the 2020 tax year
Corporations:
Corporate Taxes are due 6 months after the end of the corporation’s tax year.
Generally, corporations have to pay their taxes in instalments, either monthly or quarterly.
The balance of tax is required to be paid two or three months after the end of the tax year depending on your balance-due day.
Docusign:
We love when you visit, but instead of coming into our office to sign in person, you could try Docusign. Eliminate the extra steps of coming in by scanning and keep your physical distance.
If you have any questions, please reach out! We can help!
Radhika Gauthier, CA, CPA
Contact us at 780-920-0015 or email us at radhika@gauthieraccounting.ca
The post 2020 Tax Filing in Alberta appeared first on Gauthier Professional Corporation.
