Not up to speed on the changes Canada has made to personal income taxes this year due to the COVID-19 pandemic? Our Chestermere accountant outlines them all in the article below. Read on to find out more.
The federal government has enacted numerous measures to help Canadians weather the economic damage wrought by COVID-19. One of those measures includes changes to how personal income taxes will be handled this year. For more information on what’s different for this filing year, be sure to read the article below courtesy of our Chestermere accountant.
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What You Need to Know About Canada’s COVID-19 Personal Income Tax Changes
By and large the biggest change the feds have made to personal income taxes this year in light of the COVID-19 pandemic is the extension of the filing and payment deadlines for Canadian taxpayers. But there are other changes afoot at the CRA that you should be aware of too. Read on to find out what they are.
Extended deadlines for 2019 tax year
The CRA has pushed back the deadlines for Canadians to both file their personal income taxes and pay any money they owe as a result of their filing for the 2019 tax year. The date changes are as follows:
- Filing date extended from April 30 to June 1
- Payment deadline for taxes owing extended from April 30 to September 1
In addition to the extended deadlines, there will be no penalties (including late-filing penalties) or interest applied to any amounts owing so long as your return is filed and payments are made by September 1, 2020.
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Extended payment deadline for self-employed individuals and their spouses
While the tax deadline for sole proprietors is remaining the same for the 2019 tax year (June 15, 2020), the payment deadline for those individuals and their spouses has been pushed back from April 30 to September 1. Like above, so long as their payments are received by September 1, 2020 there will be no penalties (including late-filing penalties) or interest applied to their amounts owing.
Other important changes
While the extended deadlines for personal income taxes are indeed the biggest changes made by the federal government for the 2019 tax year due to COVID-19, there are some other important measures being carried out by the CRA in response to the pandemic that you should be aware of. These include:
- An increase to the GST/HST credit amount (maximum increase from $443 to $886 if you’re single, $580 to $1,160 if you’re married or living common-law)
- Processing delays for T1 paper returns (CRA is advising Canadians to file electronically this year)
IAPC has you covered
If you’re concerned about the state of your personal taxes or finances in light of the ongoing pandemic, book a free consultation with one of our trusted Chartered Professional Accountants today and let us help guide you through this uncertain economic time.
