Click below for a great summary of the 2020 Tax, Tips and Traps 2020 Tax Trips and Traps [ … ]

CRA released new rules for employees working from home during COVID-19. Some items include: New Temporary Flat Method – $2/day (to a $400 max) if you worked at home for at least 4 consecutive weeks during the pandemic. New Optional Detailed Method – You obtain a simplified T2200S from your employer and claim specific eligible [ … ]

Understanding that the COVID-19 pandemic has forced many employees to carry their work out from home, the liberals announced today that Canadian taxpayers working from home in 2020 may be able to deduct a $400 simplified home office deduction. This was much anticipated as the current legislation around work space in home expenses are difficult [ … ]

Interest rates for the fourth calendar quarter The Canada Revenue Agency (CRA) announced today the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. These rates will be in effect from October 1, 2020 to December 31, 2020. Due to COVID-19, certain payment [ … ]

Interest rates for the second calendar quarter The Canada Revenue Agency (CRA) has announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. These rates will be in effect from April 1, 2020 to June 30, 2020. [ … ]

Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2018 are listed below. RRSP deduction limit increases The RRSP contribution limit for the 2017 tax year [ … ]

Credit amount ($)  Tax credit ($) Basic personal amount 11,809  1,771.35 Spouse or common law Partner amount 11,809 1,771.36 Eligible Dependant amount 11,809 1,771.35 Age Amount 7,333 1,099.95 Net income threshold for erosion of credit 36,976 Canada employment amount (maximum) 1,195 179.25 Disability amount 8,235 1,235.25 Adoption expenses credit 15,905 2,385.75 Medical expense tax credit [ … ]

The Canada Pension Plan contribution rate for 2018 is unchanged at 4.95% of pensionable earnings for the year. The maximum pensionable earnings for the year will be $55,900, and the basic exemption is unchanged at $3,500. The maximum employer and employee contributions to the plan for 2018 will be $2,593.80 each, and the maximum self-employed [ … ]

The Quebec Pension Plan contribution rate for employees for 2018 is 5.4%. The maximum employee premium for the year is $2,829.60, and the employer contribution is equal to the employee contribution. [ … ]

The Employment Insurance premium rate for 2018 is 1.66%. Yearly maximum insurable earnings are set at $51,700, making the maximum employee premium $858.22. As in previous years, employer premiums are 1.4 times the employee contribution. The maximum employer premium for 2018 is therefore $1,201.51. [ … ]