To help support businesses through this difficult time, the Canadian Federal government is allowing for deferrals that will help ease the financial burden and give businesses time to focus on the matters at hand.
With all of the changes that have come our way as a result of measures put in place to reduce the spread of COVID, many businesses are facing reduced revenues. To help support businesses during this time, prevent additional job loss and encourage the hiring of previously laid-off individuals and new employees, the Canadian Federal Government has introduced as a wage subsidy program.
A number of non-essential service workplaces, from libraries to casinos, have been mandated to shut down in Ontario in an attempt to curb the spread of COVID-19.
We are three months into 2020 and while many Canadians are still concerned with their 2019 tax return, we must also remember how important it is to plan and strategize our taxes for the year ahead.
Registered Retirement Savings Plan (RRSP) contributions - the one tax planning strategy you have left in your toolbox to ensure you make the most of your 2019 income tax return.
You see, when you contribute to your RRSP, you can reduce your taxable income by the amount of the contributions made, reducing your tax owing. Unlike other tax planning tools, however, contributions made until March of this year can be applied to last year’s tax return (except for those who turned 71, which is discussed below).
To help you make the most of your RRSP contributions, here are some important considerations for the 2019 and 2020 tax years.
It’s that time of year when you should be considering last minute steps to optimize your 2019 income tax return before the April 30, 2020, deadline (June 15 for self-employed individuals).
To help you on your way, Koroll & Company has listed some common tax credits and tips on how to maximize their effect on your tax owing.
Each year, the government adjusts existing tax credits and introduces new ones. These new introductions help taxpayers minimize their tax obligations and decrease the burden of necessary expenses, while also encouraging people (and businesses) to make a difference.
This year, there are four newly introduced tax credits and strategies for individuals and businesses to be aware of:
Unlike tax deductions that reduce your taxable income, tax credits reduce your tax owing (your taxable income multiplied by the applicable tax rate).
Non-refundable tax credits are tax credits that can only be used to reduce your tax owing to $0. If there are still credits remaining once your tax owing equals $0, you will not be refunded the remaining amount.
