What you need to know for the 2021 Tax-Filing Season

IMPORTANT TAX INFORMATION YOU SHOULD KNOW!
Monday, November 29, 2021
media.newsitem.imagealternatetextformat

As you begin to get ready to prepare your 2021 tax return, we want to make sure you’re aware of important deadlines and changes so you have everything you need to file your return with minimal hassle.

Filing starts on - February 21, 2021.

Tax filing deadline for individuals - May 2, 2022, as April 30 the usual tax deadline falls on Saturday.

Tax filing deadline for self-employed - June 15, 2022. If you owe, pay by April 30, 2022, to avoid penalties.

RRSP contribution deadline - March 1, 2022.

The maximum RRSP contribution limit for 2021 - $27,830.

TFSA annual limit - $ 6,000 for 2022 matching the amount set in 2021. It means for individual who has been eligible since 2009 can contribute a total of  $81,500.

The maximum pensionable earnings are $61,600 for 2021, which will increase to $64,900 for 2022.

The maximum insurable earnings are $56,300 for 2021 and will increase to $60,300 effective January 1,  2022

First-time home buyers may be able to claim up to $5,000 of the purchase cost and get a non-refundable tax credit of up to $750.00.

For the 2016 and subsequent taxation years, the federal donation tax credit rate for donations up to $200 is 15%. If an individual has a taxable income of less than $200,000 the rate for donations over $200 remains at 29%. However, if the individual taxable income is over $200,000 they can claim up to 33%.       

Basic Personal Amount - $13,808 for 2021 for individuals with a net income of $150,473 or less. The credit is gradually reduced for individuals with net income b/n $150,473 - $214,368. 

Age amount - Individuals who are 65 years old at the end of the tax year can claim $7,713 for 2021. 

OAS Clawback - Individuals whose world net income exceeds $79,054 in 2020 tax return may have to pay back part of or the whole OAS pension received. And will be reflected on July 2021 to June 2022 pay period.

Canada Child benefit - the maximum amount that can be received from July 2021  to June 2022: 

Child under six : $6,833 

Age 6 -17: $5,765

Child Care expense deduction limit - As of 2017, the maximum amounts that can be claimed are $8,000 for children under age seven. $5,000 for children aged seven through 16, and $11,000 for children who are eligible for the disability tax credit. Only low-income parents can claim.

         *If you are a resident of Ontario, you can claim up to 75% of your eligible child care expenses.

 

Federal and Ontario tax rate and brackets -2021:        

Federal: Income Tax Rate    Income Brackets
0%  up to $13,808
15%  $13,809 to $49,020
20.5%     $49,021 to $98,040
26%      $98,041 to $151,978
29%  $151,979 to $216,511
 33%   over $216,511

 

Ontario: Income Tax Rate    Income Brackets
0%  up to $10,880
5.05%$10,881 to $45,142
9.15%$45,143 to $90,287
11.16%     $90,288 to $150,000
12.16%  $150,001 to $220,000
13.16% over $220,000

 

If you have any questions don't hesitate to contact us!!

 

Call us
Quick Inquiry