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.
An Audio Version of this post is available below.
Podcast: Play in new window | Download
