News & Publications

News

With a new year brings the same standard deadlines for RRSP Contributions (Mar. 1, 2021) and income tax filing April 30, 2021 (for individuals) & June 15, 2021 (for self-employed individuals). Contact me for your 2020 (or prior year) income tax filing needs.

Income tax filing deadlines for 2019 have passed - But it's never too late! Late filing penalties of 1%/month continue to be charged until the return is filed so why not contact me to file your outstanding tax returns and avoid further interest charges.

2021 Changes

Income Tax:As a result of the unprecedented challenges due to COVID-19 the Canada Revenue Agency (CRA) has simplified the deduction for home office (workspace-in-the-home) expenses by introducing a new temporary flat rate method to simplify claiming the deduction for home office expenses for the 2020 tax year. For more information visit the income tax section.

The basic personal exemption amounts have been indexed for 2020. The basic federal exemption has increased to $13,808 [$13,229 in 2020] and the provincial exemption for Ontario has increased to $10,880 [$10,783 in 2020].

Canada Pension Plan: The maximum pensionable earnings under the Canada Pension Plan (CPP) have likewise been indexed for 2021 increasing to $61,600 [from $58,700]. However, more importantly the CPP contribution continues to to increase annually under Phase I of the government’s CPP enhancements program; the 2021 contribution rate is 5.45% for individuals and 10.9% for self-employed individuals.

Employment Insurance: Maximum insurable (EI) earnings have also been indexed for 2021 increasing to $56,300 from $54,200 [2020]. Ironically, the employee EI premium rate remains unchanged in 2021 at $1.58 per $100. This means that an insured worker who maxes out on EI insured earnings 2021 will pay $889.54 (up from $856.36 in 2020).

The annual TFSA [Tax Free Savings Account] Contribution Limit remains unchanged at $6,000 in 2019 [$5,500 in 2018], which would allow for a maximum cumulative contribution of $75,500 since its inception in 2009.

Publications


As a CPA, I am a subscriber and avid reader of CPA magazine to keep up to date on changes in accounting standards that affect both IFRS (International Financial Reporting Standards) and ASPE (Accounting Standards for Private Enterprises) as well as revisions and Amendments to the Income Tax Act.