Important Year-End Tax Deadlines

There are some important deadlines to remember before this tax year comes to a close. Of course, there are the usual suspects, including the cut-off to make year-end donations and receive a donation receipt; the instalment payment deadline for farmers and fishers; and a new one this year for CERB repayment. It’s an issue that has already caused many Canadians stress and confusion. Here’s a summary of salient tax deadlines remaining for 2020:

CERB Repayments. Although the CRA has not provided a repayment deadline, doing so by December 31 ensures that it doesn’t need to be reported as income on the 2020 tax return. That’s important because over-reporting income will affect other government benefits that may be otherwise available.

Annual Instalment Remittance for Farmers and Fishers.  People who owed $3000 or more on the current tax filing year and in either of the last two immediately preceding tax years must make quarterly tax remittance payments to avoid interest charges.  However, that’s not so for farmers and fishers, who instead do so only once a year, based on 2/3 of net income on December 31.   

Make Your Final Donations for 2020.  It’s getting late to transfer securities for these pruposes on time for the ecember 31 year end deadline, but cash donations by credit card online, are still an option now til the end of the year.   You’ll get a donation receipt to help reduce your taxes payable. 

Adjust Your 2010 Tax Return For Errors And Omissions.  That tax year falls off the adjustment cliff December 31.  So if you missed claiming capital or non-capital losses, medical expenses, charitable donations, disability amount and a host of other tax provisions, it will be too late.

Check it out with a tax pro before the end of the week to save some extra money before saying goodbye to 2020 for good.

Additional educational resources: Train your team now to provide this essential service during what is sure to be a complex tax season this spring: join us at the January 20 Virtual CE Summit for an Advanced Personal Tax Update and earn 10 CE/CPD credits, too.