Canada's NDP

NDP

March 25th, 2021

2020 Tax Guide For residents of St. John's East

2020 Tax Year—Frequently Asked Questions

What is the deadline to file and pay this year?

The deadline for most, including those who owe a tax debt, is April 30, 2021. Individuals can file online as early as February 22, 2021.

Can I still file on paper?

Yes, although filing online is the fastest and most secure way. Constituents who filed a paper return last year should be mailed the 2020 Income Tax Package by February 19, 2021, but there may be delays due to COVID-19.

If you need a paper copy we can send one to you. Please call us at 709-772-7171 or email: jack.harris@parl.gc.ca

Do you need help with your tax return?

You may be eligible for help at a free tax clinic if you have a modest income and a simple tax situation. Scroll to the bottom to see definition of modest income.

The Community Volunteer Income Tax Program (CVITP) may be able to complete and file individuals’ taxes virtually by videoconference, by phone, or through a document drop-off arrangement. Click here to find a tax free clinic.

Virtual - St. Mark's Church Free Tax Clinic Drop Off
230 LOGY BAY RD
ST. JOHN'S, NL
Drop-off General public/All persons

Virtual - MUN Tax Clinic. Contact: taxclinic.mun@gmail.com
PO BOX STN C
ST. JOHN'S, NL
By appointment Club/association members, General public/All persons, Indigenous, Newcomers, Persons with disabilities, Residents/patients, Resides within local community, Seniors, Social assistance recipients, Students, Youth

Virtual - Free Tax Clinic by CPA NL.

Contact: phone (709) 753-3090 Ext: 201 Email address: jhillyard@cpanl.ca

95 BONAVENTURE AVE
ST. JOHN'S, NL
By appointment, Drop-off Seniors

The HUB Free Tax Clinic
21 MERRYMEETING RD
ST. JOHN'S, NL
Drop-off General public/All persons

Buckmasters Circle Community Centre Free Tax Clinic
129 BUCKMASTER'S CIR
ST. JOHN'S, NL
Drop-off General public/All persons

Virtual - A.C. Hunter Public Library Free Tax Clinic

contact: taxclinicc@outlook.com
ST. JOHN'S, NL
By appointment General public/All persons

For those who are self-employed: the Liaison Officer service helps small business and self-employed individuals with tax-related questions, explains business deductions, common tax errors, provides an overview of helpful tools, and offers advice and help with setting up an effective bookkeeping system. For more information click here: Free tax help for small business owners and self-employed individuals

What changes have been made to the home office expenses deduction?

The CRA has introduced a Temporary flat rate method to calculate the deduction. Eligible employees can claim a deduction of $2 for each day they worked from home in 2020 due to COVID-19, up to $400 maximum for the year. This can only be used for the 2020 tax year.

Employees with larger claims can still choose to use the existing detailed method to calculate their home office expense deduction.

More information on the process for claiming home office deducations:

https://www.canada.ca/en/revenue-agency/news/2020/12/simplifying-the-process-for-claiming-a-deduction-for-home-office-expenses-for-employees-working-from-home-due-to-covid-19.html

How do I report emergency and recovery benefit income related to COVID-19?

Income from these benefit payments are taxable. Some provinces or territories may have sent out pandemic related payments that are considered taxable income, these amounts should be included on your tax return.

If you received COVID-19 recovery benefit payments from the CRA, you should have received a T4 slip.

To find out how to report these amounts click here.

How is the CRA helping with tax debt this year?

Targeted interest relief is being provided to Canadians who are facing income tax debt for the 2020 tax year as a result of having received COVID-related income support benefits. These individuals will not be required to pay interest on any outstanding income tax debt for 2020 until April 30, 2022. This interest relief will automatically be applied for individuals who meet these criteria.

The Government of Canada is also taking steps to allow self-employed individuals who applied for CERB based on their gross income from self-employment to keep their payments, provided they met all other eligibility requirements. The same approach will apply whether the individual applied through the Canada Revenue Agency or Service Canada.

Some qualifying self-employed individuals whose net self-employment income was less than $5000 may have already voluntarily repaid the CERB. The CRA and Service Canada will return any repaid amounts to impacted individuals.

Additional Supports:

Canada Revenue Agency Toll-Free Line:

For individual tax information, call: 1-800-959-8281

For business-related tax information, call: 1-800-959-5525

You can check wait times here: https://www.canada.ca/en/revenue-agency/corporate/contact-information.html

Check the status of your refund:

If you reside in Canada, wait 8 weeks before contacting the Canada Revenue Agency for an update on your tax return and refund status. If you reside outside of Canada, wait 16 weeks. To access the details of your tax return, visit: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/refunds-status.html

To find out the standard processing times for tax returns and other tax-related requests sent to the Canada Revenue Agency visit: https://www.canada.ca/en/revenue-agency/corporate/contact-information/check-cra-processing-times.html

Please note that the COVID-19 pandemic may be impacting the standard processing times

Modest Income:

Use the suggested income levels shown in the following table as a guideline to determine if an individual is eligible for the CVITP. In general, a modest income means the total family income is less than the amount shown in the chart below, based on the size of the family.

Family Size Total Family Income

1 person $35,000

2 persons $45,000

3 persons $47,500

4 persons $50,000

5 persons $52,500

More than 5 persons $52,500, plus $2,5000 for each adult