March is Anti-Fraud prevention month. I’m sharing this video because it’s such an easy tool to use to spot scam. Basically, if it’s too good to be true it probably is. As the Government of Canada warns “If it raises your eyebrows, it should raise questions.”
Comment below other tips and tricks to prevent being scammed in support of Anti-Fraud Prevention Month!
Tax season has started in Canada, and the CRA is ready to accept returns.
It’s going to be another interesting year as there have been many handouts from the provincial and federal governments. As well as the creation of new credits, benefits, updates and changes to others around the pandemic.
Federal taxes credits can include some (or all) of the following if applicable:
Provincial tax credits are a plenty, especially this year;
In addition to these refundable tax credits;
The deadline to file taxes is April 30th, because that is a Saturday returns can have a post mark on them as late at May 2nd and will still be considered on time if you’re mailing it in.
As it has been said many times before, 2020 was an unprecedented year that proved to be turbulent and unforgiving, but while the calendar year may have ended, you cannot forget about 2020 just yet.
With the deadline to file your 2020 taxes looming, there are many significant additions and updates to this tax year that you will have to keep in mind.
With the help of Jeff Lansing, a spokesperson for the Canada Revenue Agency, we aimed to address topics that had the most significance.
In the early stages of Covid-19, Canada’s unemployment rate peaked at 13.7%, and in an effort to offset the loss of income that many Canadians were facing, the Government of Canada began rolling out benefits such as CERB, CESB, etc.
Recipients of these benefits will have them filed as taxable income and will receive a T4A or a T4E.
“Individuals who received these may owe taxes when filing their personal income tax and benefit returns,” says Lansing.
Because no tax was withheld from these payments, the amount that is owed on them if any will be dependent on the individual’s situation.
While parts of the country have seen some economic recovery, many Canadians are still in an unfavourable financial situation and, as a result, the CRA has altered their procedures to avoid debt from feeling like an avalanche.
“If you cannot pay an existing debt in full, then you might be able to make a payment arrangement,” says Lansing.
He adds that they’ve expanded the parameters that allow them to create flexible payment arrangements to facilitate for people that are struggling.
In addition, recipients of the aforementioned emergency benefits will also see alterations to their payments.
“Once eligible individuals have filed their 2020 income tax benefit returns, they will not be required to pay interest on any outstanding income tax debt from the 2020 tax year until April 30th, 2022,” says the CRA spokesperson.
A large portion of the workforce that was employed still saw their lives change drastically with a transition to working from home.
In the past, you would have been forced to do calculations that include square footage, however, due to the increase in people that will be eligible, the CRA introduced a new flat-rate method to ease the process.
“It allows employees who worked more than 50% of the time from home for a period of at least four consecutive weeks due to COVID-19 to calculate their home office expenses using a flat rate method of $2 for each day they worked from home,” says Lansing.
Now whether your office included a desk and a bookshelf or a couch and a foldable tv stand, so long as you meet the date and time requirements, you will be eligible for the Work from Home Tax Credit.
Lansing believes that the new temporary method will also help employers avoid having to approve hundreds of forms that certify their employee is working from home.
For over 50 years, volunteer-run clinics called the Community Volunteer Income Tax Program have been organized with the assistance of the CRA.
They allow individuals with a modest income and a simple tax return to have their taxes done for them free of charge.
Last year with COVID-19 beginning to impact Canada at the start of tax season, a move to virtual clinics included some issues, but Lansing says this year they are prepared.
“We’re offering free virtual income tax clinics to help taxpayers pay their taxes, and because it is virtual, we’re following those physical distance guidelines.”
This year a simple tax return will also include someone who has received an emergency benefit.
Participants of the clinic will be able to do so through a video conference, a phone call or document drop-off.
This year amid ongoing difficulties with mailing, Canadians are being encouraged to file their tax returns electronically.
There is also an option to choose a direct deposit for any tax refund you may receive rather than wait for a cheque in the mail.
Paper files will still be accepted however, users of this method are urged to do so sooner rather than later to ensure their taxes are filed on time.
Despite the misfortunes that some Canadians have been plagued with, schemes that target vulnerable individuals are still prevalent, with CRA scams being amongst the most popular.
Less than a month ago, CRA locked over 800,000 taxpayers out of their CRA accounts due to compromised usernames and passwords.
To avoid being taken advantage of, the following are things the CRA will NOT do:
Lansing says that there is one way to identify someone who does not work for the CRA.
“The most important thing to know is we will never use aggressive language or threaten you with arrests or by sending the police to your house.”
Unlike last year it appears that the usual tax deadline will apply. Income tax and benefit returns are due on April 30th, 2021, and the deadline to pay any balances is the same time.
Self-employed individuals and their spouses or common-law partners have until June 15th, 2021, to file their returns.
We know many of you have missed out on a lot this past year, but a refund, benefit or credit shouldn’t be one of them! File your tax return so you don’t miss out on what you may be entitled to! https://t.co/HoFtDr8yCA #CdnTax pic.twitter.com/0ii9LMkkAr
— Canada Revenue Agency (@CanRevAgency) March 23, 2021
Provincial Police are warning of the return of the Canada Revenue Agency scam in our area.
OPP have received several reports of the popular telephone scam.
People are targeted by someone claiming to be from the CRA or other government authority being accused of owing back taxes, having unpaid balances or having committed a financial crime.
The fraudster insists of immediate payment threatening the person with arrest, fines or even deportation.
They ask for payment through money service businesses or pre-paid cards and gift cards.
Police stress credible organizations will always provide time to verify personal information.
OPP add you should never be pressured to give money or personal information to someone you do not know.
For more information, visit https://www.antifraudcentre-centreantifraude.ca/index-eng.htm
Good news for those who procrastinate when doing your income taxes.
The federal government is giving you more time to file and pay this year as a result of the Coronavirus.
The Canada Revenue Agency will extend the tax filing deadline for individuals from April 30th to June 1st.
The government will allow all taxpayers to defer, until after August 31st, the payment of any income tax amounts that become owing on or after today and before September 2020.
The Canada Revenue Agency is getting a good response to its website after people started learning there could be unclaimed money awaiting.
A reported one billion dollars in refund or benefit cheques have gone unclaimed over the past several years.
Spokesperson Paul Murphy says they’re only now able to at least let Canadians known they may have money waiting.
“The technology has just developed so that we’re able to quickly and efficiently put that on-line. That option wasn’t available until very recently.”
Murphy says the unclaimed cash could be from wrong addresses or people just not cashing their cheques in time.
He notes Canadians can find out if they’re owed by going to the My Account portage on the Agency’s website at https://www.canada.ca/en/revenue-agency.html
It’s tax time in Canada.
You have until the end of April to file without penalty.
Canada Revenue Agency’s Paul Murphy says there’s a new tax credit available to some.
“There’s a credit called the Canada Workers benefit. It’s an enhancement to the old Workers Income Tax benefit. And what it does is if you have working income, low income, individuals can receive up to $1,355.
Murphy says there’s also a feature on the Agency’s website where you can track the processing time of your claim.
He notes electronic filing is now the most popular method.
Murphy says Canadians can expect to receive their refund in as little as eight days by filing electronically.
If you owe money to the Canada Revenue Agency, there is some good news.
The interest charged on outstanding taxes will remain at 6% until the end of March.
It’s also the same rate charged on Canada Pension Plan contributions and employment insurance premiums.
Interest rates are reviewed every three month
