The 2020 Nanaimo income tax filing season is fast approaching. To help you get organized and prepared, we’ve compiled a list of essential dates, changes and links to help Nanaimo income tax filers get the best tax reduction or tax refund possible in the 2019-20 tax season.
2020 Canada Tax Season Key Dates:
- The deadline for individuals and most businesses to file their 2019 tax returns is April 30th, 2020.
- If you are self-employed in Canada or have a spouse/partner who is self-employed, the filing deadline extends until June 15, 2020.
- If you’re already organized and ready for that refund, the Canadian Revenue Agency (CRA) will start accepting electronic returns on February 24, 2020.
Avoid late tax-filing penalties:
Don’t incur additional charges because of a late tax return submission. The late penalty is 5% of your tax balance owing, plus 1% of your balance owing for each month your return is late (up to 12-months).
If you were charged a late tax-filing penalty in previous years, the CRA can increase your late-filing penalty for 2019 to 10% of your tax balance, plus 2% of your balance owing for each month your return is late (up to a max. of 20-months). For more information on interest and penalties, please visit the CRA website.
Tax Changes for 2020:
Plan ahead and save money by staying up-to-date on some of the tax changes coming into effect before the tax filing deadline of April 30, 2020.
- Basic Personal Amount (BPA) is a non-refundable tax credit that can be claimed by all individuals for their income tax, known as the personal amount. The Basic Personal Amount is proposed to increase to $13,229 for 2020.
- Home Buyers’ Plan (HBP) helps first-time homebuyers finance their down payment on a home by allowing them to make a withdrawal of up to $35,000 from an RRSP/RSP without paying any tax. Begining in 2020, individuals who make a withdrawal in the same year of experiencing a breakdown of a marriage or common-law partnership (or in the four preceding years) can access the Home Buyers’ Plan even if they are not considered a first-time homebuyer.
- Employment Insurance (EI) premium rate will decrease from $1.62 to $1.58 per $100 of insurable earnings in 2020.
- Canadians can claim up to $500 in costs towards eligible digital news subscriptions for a maximum tax credit of $75 annually.
- Not-for-profit journalism organizations can now register under a new category of the tax-exempt qualified donee to receive donations from Canadians (individuals or businesses) who can then claim the amount for a charitable donation tax credit.
For more information on other tax changes taking effect in 2020, visit the CRA website.