Author: rsamuels@obsidianmortgages.com

Things To Consider When Filing Your Taxes In 2022

As the year 2022 approaches, it is important for Canadians to consider how the tax system will change. In this article, we will discuss what changes will occur and what you need to know to prepare for them.

The first thing that needs to be considered is that the Canada Revenue Agency (CRA) has announced that they will be implementing a new tax regime in the fall of 2021. This will be known as the “Fair Tax System”. The Fair Tax System is a single tax system that combines the federal income tax with the provincial sales tax. The CRA has also stated that this will be the only tax regime in place by 2022.

The Fair Tax System will replace the current system that has been in place since 1985. The previous system was designed to make things easier for small business owners and self-employed individuals. It was based on a three-branch system which included the federal government, provincial governments, and municipalities.

The Fair Tax system will have one tax rate and will be a single tax system that will apply to all Canadians. There will no longer be a separate system for small business owners and self-employed individuals.

The Fair Tax is a single tax system that will include all Canadians. It will combine the federal income tax with the Provincial Sales Tax. The CRA has stated that the system will be simpler and fairer. The Fair Tax System will not be implemented until 2021.

In addition to the Fair Tax System, the CRA has announced that they will be increasing the amount of information that must be disclosed to the CRA. This will include more information about your business activities and personal financial situation. The CRA has also stated they will be taking a closer look at the use of trusts.

The CRA has stated that there will be increased enforcement measures to ensure that people are filing their taxes correctly. They will be using software programs to check your return to ensure that you have reported all the income that you should. If you are found to be over-reporting your income, you may face penalties.

The Fair Tax will also make it easier for Canadians to file their returns online. In the past, Canadians had to fill out paper forms and mail them in. This will be eliminated in the fall of 2021.

The Fair Tax has been designed to help small business owners and self-employed. The CRA has stated that they will provide additional resources to help these individuals. They will also be providing information on how to set up a business so that you can take advantage of the new system.

Things To Consider When Filing Your Taxes In 2021

With the end of 2020 and the beginning of 2021 fast approaching, Canadians have been looking forward to their upcoming tax returns. However, as the year has progressed, many people have found themselves wondering how to file their taxes for the year. This is due to the fact that the Canadian government has recently revised their tax system for the year 2021.

The Canadian government has been known to change its tax laws quite often, and this year’s changes will be no different. In fact, the Canadian government has made a number of changes to the tax system, and it will affect everyone who files their taxes. These changes include:

• The amount of income you can deduct from your taxes has increased. This means that if you earn more than $30,000 per year, you will be able to deduct up to $5,000 of your taxable income. If you earned less than this amount, you will still be able to deduct up to this amount.

• You will be able to deduct your medical expenses from your taxes. This means that if you spent over $200 on medical expenses, you will be able to write off this amount from your taxes.

• Your children will be able to claim the Child Tax Credit on their tax return. This credit will be based on the amount of income that you make. If your income is under $15,000, you will be able to claim the full amount of $2,000 for each child. If your income is over this amount, you will be able to get the full $1,500 credit for each child.

• You will not be able to claim the new tax credit for the purchase of electric vehicles.

• You will need to pay attention to the new tax credits for home renovations.

• You will no longer be able to claim the tax credit for donations to charity.

• You will have to pay attention to the new rules regarding the use of your RRSPs.

• You will also need to pay attention to the changes in the tax rules for the self-employed.

• And finally, you will need to pay attention to any changes in the tax rules for seniors.

It is important to note that all of these changes will take effect on April 1, 2021. Therefore, you will need to make sure that you do your taxes before this date. It is recommended that you hire a professional to help you with your taxes so that you can avoid any problems.

For Those seeking additional information in these matters please feel free to contact an Obsidian Financial Service Representative for assistance.

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Canada Recovery Benefit (CRB)

This is just a reminder that the CRB program is still available for those self employed individuals who are eligible. If you would like to inquire into your eligibility, and submit an application, we would be more than happy to assist. Please contact us today.