Every year, taxpayers file a tax return to calculate their tax payable and report their income to the government. This return will include an Income Tax and Benefit Return along with other forms and schedules to help itemize income and expenses and calculate credits.
Allen Koroll
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There are often misconceptions about what sources of income need to be reported on tax returns in Canada. So today I want to talk about income that must be included on your tax return and income you don’t have to report.
Amounts Included In Income
Here is a listing of many of the incomes you’ll be required to report:
Unlike other countries, Canada uses residency instead of citizenship to determine tax obligations. That means you need to know what your residency status is before you can determine what your filing requirements are.
From a tax perspective, individuals in Canada fall into one of three categories.
Koroll & Company welcomed Michael Falcone, CPA, CGA, LPA to the company in February, 2021. We are excited to share the announcement with you, and to introduce you to Michael, a most valued new member of our team.
The Government of Canada has announced that some self-employed Canadians who were ineligible to receive the Canada Emergency Response Benefit (CERB), and received it anyway, will not be forced to repay the money.
In a statement released in February, the federal government said that self-employed Canadians who applied for, and received CERB payments based on their gross income instead of their net income would not be required to repay the benefit on their 2020 tax year return - as long they also met all other eligibility criteria.
If you were affected by the 2020 COVID-19 lockdowns and received the CERB (Canada Emergency Response Benefit) you may have a large tax bill coming your way.
When you receive employment income, taxes are deducted at the source and sent to the government on your behalf. This pay as you go program stops you from owing large amounts come the new year.
The Department of Finance Canada has announced the automobile income tax deduction limits and expense benefits rates for 2021, which will remain largely the same as 2020 with the exception of one change that came into effect on January 1, 2021.
Employees working from home is not a new phenomenon, but with COVID-19, it has become less of a perk and more of a necessity.
In response, the government has introduced a simplified process for claiming home office expenses. But before we get to that, let’s look at the home office deduction that was claimed in past years.
