Did You Know?
On December 14, 2021, the federal government released the 2021 Economic and Fiscal Update. The Update referenced some proposed changes that may impact 2021 personal tax returns and your T1 checklist.
Working from home deduction - The government announced that they intend to extend the ability to use the temporary flat rate method for 2021 and 2022 and increase the annual limit to $500 (from $400 in 2020). Details from CRA were not available as of December 17, 2021, including whether, for example, the T2200S would be used this year.
Eligible educator school supply tax credit - This refundable tax credit is proposed to increase to 25% (from 15 %), effective for 2021. Eligible expenses are proposed to be expanded to include certain electronic devices such as calculators, webcams, microphones, headphones, multimedia projectors, external data storage devices, wireless pointer devices, electronic educational toys, digital timers, speakers, video streaming devices, printers, as well as laptops, desktops, and table computers provided that these items are not made available to the eligible educator by their employer for use outside of the classroom. The limit of $1,000 of eligible supplies will remain unchanged.
Northern residents’ deduction - The travel component is proposed to be expanded such that eligible individuals can claim a standard amount for eligible trips take by that taxpayer.
For more details regarding the 2021 Economic and Fiscal Update, please subscribe to our newsletter where we keep you up to date with the latest available information.