2020 Tax Season: Nanaimo Income Tax Filing Dates & Changes
January 31, 2020
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.
Need help planning for the upcoming tax season? Cross & Company Chartered Professional Accountants offers Nanaimo income tax services for both business and personal. Make sure no credits or deductions are missed and book an appointment to speak to our professional accountants today!
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