For those graduating if you are moving out of your University living quarters and are moving to a new city to get a job, that is a moving expense. If your employer reimburses you for it, then you cannot claim it. The 40 KM rule comes into play here as well.
This year (2020) is a very odd year in terms of submitting your taxes. Thanks to the COVID19 outbreak, the current official date for submitting your 2019 taxes is: June 1, 2020 (check the link for any updates)(you only have to pay on September 1st though). Just remember Taxes Delayed is Money Lost (to you).
September 1st, is the date when you must pay your taxes if you owe money. If you are owed a rebate, what are you waiting for? There are so many good reasons to do your taxes now:
One of the most important things you can have is have a My CRA on-line account with the Tax Folks. How do you do that?
Go to this web site to start the process: CRA Log In Registration Site . Note you will need a copy of last years Tax return to verify you are who you are. Once you register, you wait, because the CRA will then send via Canada Post your log in credentials.
Once this letter shows up follow the instructions and log in. After logging in once, you can then put that information somewhere very secure, and forget about it. Why? Your Bank access for online banking can be used (for most of us) as our log in after that.
Why Get it?
Why is My CRA so good to have? Here are a few things you can get there:
Your TFSA limit for this year. This is calculated at the start of the year, so if you have already deposited money into it, you’ll have to take that into consideration.
Your RRSP limit for the year. See the TFSA for the same cautions about the data.
The Status of your Tax Return or Appeal. I have found this invaluable with my many reviews and such. Typically the CRA will tell you if you have email to deal with from them as well.
Emails from the CRA about your return, or appeal. This is the only way the CRA will contact you, and it will tell you to check My CRA, without any link. They won’t ask for iTunes cards either.
Usually you can download your Tax data into Turbotax and other Tax Prep software, which makes life infinitely easier. I used that this year, very useful.
Lots of other stuff too.
If you are an on-line person, get this access now, it will make your life much simpler.
Make sure to claim your medical expenses even if
you have little to no tax to pay. You might be entitled to the refundable
medical expense supplement credit, which reimburses you for portion of your
expenses regardless of your tax payable.
Are you self-employed and you paid income tax during the year through
If yes, make sure to claim these instalment
payments against your tax payable.
Other items based on recent changes
Are you self-employed and purchased capital assets during the year?
Was your income (or your spouse’s) too low in the prior years for the childcare
expense deduction to have an effect on your tax return?
If yes, Ontario (New CARE credit) and Quebec
offer a refundable credit that can be claimed even if your income and tax payable
are low. Make sure to claim the expenses even if there is little effect on the
Are you a modest income earner with multiple T4s?
This year the federal government has enhanced
the Canada Workers Credit. This is a generous refundable credit, but your
income still needs to exceed a minimum threshold amount to qualify for it. Make
sure to declare all your employment income.
Gerry Vittoratos has been working for Thomson Reuters for over 10 years as a trainer and tax support resource person. In his capacity as head trainer, Gerry has been providing training sessions to tax professionals all over Canada. He has also made several radio and TV appearances on BNN and Global TV as the UFile tax specialist discussing a multitude of tax topics, and is the author of the UFile and DT Max tax blogs. Gerry has also served as the main resource person for the tax support department of Thomson Reuters, resolving complex tax issues and questions for tax professionals using the DT Professional Suite.
Gerry obtained his Graduate Diploma (Gdip) in Taxation from University of Sherbrooke in 2018, and is in the process of obtaining a Master’s of Taxation.
I was delighted to
see a response
on my re-assessment, so quickly after I had called asking for status. After
logging in to look at “My Account” I was a little concerned when I
saw my account balance continued to be $0 (zero dollars).
Going into the Email section, I found out that I had made a bad assumption, and it was going to cost me more time. I had sent my support documentation for my claim that my son’s school fees were a medical expense in December. This package included letters from various professionals agreeing with this claim.
The package was sent
on a Tuesday, however, on the Thursday afterward I received a package from the
CRA. This package was all the supporting receipts for the same claim. I didn’t
think much of it, but that was where I blundered.
This past Friday the CRA granted my claim for my son’s school fees as a medical expense. They pointed out, however, that since they didn’t have any receipts, they could not actually refund me any money.
After an obscenity filled few minutes, I calmed down, and realized how the sequence of events had worked against me.
What I Should Have Done?
I should have gone
back on-line and submitted the receipts (again) to the CRA, with my supporting
documents. The receipts have been sent again, however, I am back in the CRA
queue, and I will need to follow up with them until they finally refund me my
money (from 2017).