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Don’t miss the deadline to file your tax return! Our 2021 income tax guide for Canadians is here to help.
The year 2021 has been a year about money, from the latest crypto to inflation to housing prices to taxes. While money trends can go up and down—or up and up for certain matters—taxes can be more predictable, if you’re prepared. This year’s MoneySense income tax guide includes the things you need to know: the deadline for filing your 2021 return, which tax brackets you fall into, COVID-related tax breaks, often-missed tax deductions and more. (And if you have yet to file for the previous year, here’s our 2020 income tax guide—no judgment!)
Saturday, April 30, 2022 is the deadline for filing your 2021 personal income tax return and paying any tax you owe. (The deadline for filing this year is April 30, 2022, which is on a Saturday, by the way. So you actually have until May 2, 2022 to file.) If you or your partner is self-employed, the deadline to file is June 15, 2022, but the deadline to pay is still May 2, 2022. What happens if you miss your deadline? Filing late means paying interest: 1% per month that you’re late (up to 12 months) and 5% on the balance you owe.
Missed the deadline for filing your 2020 income tax return? Check out our 2020 tax guide.
Tax brackets should be straightforward: you find your annual income on your T4 slip and voilà, you have a rate. Except it’s not that simple—there’s some math to be done, as the federal, provincial and territorial tax brackets work more like a ladder with various tax rates applying at different income levels. So, depending on your annual income, you could be subject to tax rates from two or three brackets.
To save you time, we break down the 2021 tax brackets for Canada and the provinces and territories based on annual income, showing the minimum and maximum tax dollars for each bracket—before tax credits, deductions, etc.
Knowing your tax brackets will help you estimate how much you could owe come April 30, and to plan and prep accordingly. Could boosting your registered retirement savings plan (RRSP) contributions change your brackets? Maybe. You can also see if your employer is taking off enough (or too much) tax from your paycheque. Plus, checking your tax brackets well before the payment deadline gives you time to save up, if you’re expecting to owe.
The past two years have been unpredictable to say the least—and that uncertainty applies to filing our tax returns, too. CRB or T2200, anyone? If you don’t know what those are, we have you covered in our 2021 Canadian tax update, including new tax deductions and programs. Get information on the Canada Worker Lockdown Benefit, home office deductions, how to claim a tax credit for digital news, the minimum 15% tax for high-income individuals, credits for home buyers and more.
Find out what’s new for the 2021 tax season.
You likely know about claiming child care expenses, charitable donations and contributions to your registered retirement savings plan (RRSP)—but what other deductions could you get? We list the most commonly missed tax claims. See if you’re eligible for claims related to medical expenses, working from home, moving, tuition and school, investing fees, political contributions or buying your first home. And for each, we include how to make the claim, too.
Read the full article: What can you claim on your income taxes: 7 deductions not to miss.
If you procrastinate with your tax return, know that you’re not alone: in 2020, over 60% of Canadians didn’t file on time. Being late can be costly, though, so we want to help you conquer procrastination—and avoid penalties and interest charges—this tax season. Get motivated with the psychological hacks in our article: How to do your taxes and beat procrastination.
How much money can you put into a tax-free savings account (TFSA)? Each year has its dollar limit; for 2021, it’s $6,000. But if you haven’t contributed the full amount annually, you likely have more room. Our TFSA contribution room calculator can help you figure that out. And if you’re debating between a TFSA and an RRSP, you’ll find our explainer on the two tax-sheltered investments very useful.
To help you navigate tax season, we’ve rounded up our 15 most popular and helpful tips, from how long to keep tax documents to what happens if you lie on your return. You’ll also find advice for dealing with U.S. investments, how much money to set aside for taxes if you’re self-employed, and much more, with links to our full articles on each topic. There really is something for everyone.
Read all 15 tips: 2021 tax season primer: Our roundup of the best tax tips for Canadians.
While tax scams are nothing new, the pandemic gave rise to a new set of fraud cases, specifically around COVID-related support programs, like the Canada Emergency Response Benefit (CERB). COVID-19 phishing email scams gave hackers and con artists the personal and/or banking information to claim the benefits.
If you suspect you are a victim of fraud, collect any relevant documents, and that can include your T4, T4As, bank statements, receipts of any related transactions, as well as any emails, or text messages related to the scam. Immediately report the fraud or the scam to the Canadian Anti-Fraud Centre (CAFC) and to the police. Also change all of your passwords right away for any financial accounts that you think may have been targeted, as well as your email addresses, too.
Read how one Canadian handled their name being used for CERB fraud: “I’m a victim of CERB fraud—two years later, I’m still dealing with the tax implications”
You want more, don’t you? Check out these articles for more information on income tax.
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Apr. 30, 2022 is a Saturday, so taxpayer has until Monday, May 2, 2022 to file the T1
I have been told the actual deadline is Monday, May 2nd because April 30th falls on a Saturday, so the actual deadline is on Monday.
Thanks,
Malcolm Palmer
Thank you for your comment, and an update has been made.
When is it time to worry about not receiving your OAS and CPP tax slips?
I turn 18 December of 2021
Do I get to contribute 6000. For 2021 and another 6000 for 2022?