Winnipeg Free Press
Just like 2020 itself, tax filing this spring likely to hold disappointment, stress for many of Canadians By: Joel Schlesinger
Lisa Bircham is a little miffed about the lacklustre work-from-home tax deductions.
Lisa Bircham has been fortunate to work from home for most of the pandemic, only taking a small amount of government financial supports available.
Lisa Bircham has been fortunate to work from home for most of the pandemic, only taking a small amount of government financial supports available. I took CERB (Canada Emergency Response Benefit) for a couple of weeks, and then I was back at work, she says about the first pandemic financial support program from the federal government.
The Globe and Mail Evelyn Jacks Published March 16, 2021 /iStockPhoto / Getty Images
Get ready for a complex tax season. Aside from the challenge of filing taxes during a pandemic, Canadians face a basic T1 Income Tax and Benefit Return form with various Schedules totalling more than 40 pages for the 2020 taxation year. Although that makes the task more arduous for financial professionals, it can lead to new opportunities.
Against the backdrop of the most significant public health crisis in a century, astute financial advisors can help their clients uncover gaps in their tax and investment strategies as well as engage the whole family in financial planning.
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Like most Americans, you probably want to get through your taxes as quickly as possible. Since the Tax Cuts and Jobs Act (TCJA) was passed in 2017, fewer of us will itemize, and those who do may find fewer deductions available. However, do not rush through your return so quickly that you simply take the standard deduction and ignore deductions that can bring you a healthy refund. Consider these commonly overlooked tax deductions.
1. Charitable Contributions – You may not feel that you give enough to charity for it to matter, but every little bit helps when itemizing deductions. Any gift to a qualifying charitable organization may be deducted. The IRS website has an online search tool to verify the qualified status of any organization, but the receiving organization should be able to provide you with proof. For tax year 2020, you may deduct donations worth up to 60% of your income.
9 Crucial Tax Deductions kxly.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kxly.com Daily Mail and Mail on Sunday newspapers.
Was required to work from home by their employer.
The employee was required to pay for expenses related to the workspace in their home.
One of the following applies:
The employee’s home workspace is where they worked more than 50% of the time for a period of at least four consecutive weeks. This can be either a common area of the home or a designated room; or
The employee only uses their workspace to earn employment income
and the employee also uses it regularly and continually for meeting clients, customers, or other people in the course of their work. Note: the CRA has previously taken the position that a “meeting” means an in-person meeting (therefore a telephone call would not suffice). To date, the CRA has not announced any changes to this interpretation in light of COVID-19, particularly whether videoconference calls would be considered “meetings”, but it is anticipated some clarification will be provided prior to the filing deadline for 2020 income tax returns.