2021 Tax Policy Updates

What’s new in the 2021 Tax Season?

The following describes some legislative changes which may mostly affect your 2020 personal tax:

For individuals (other than trusts), the return filing due date will be April 30, 2021.  However, the Agency encourages individuals who expect to receive benefits under the GSTC or the Canada Child Benefit not to delay the filing of their return to ensure their entitlements for the 2020-21 benefit year are properly determined.

During COVID-19 outbreak, if you wish to do personal tax remotely, please click TRIPLE J TAX ONLINE (use laptop or desktop), create your account, and upload your slips and recepts online to allow us to process your tax in a new way. For technical support, please call us at 647-388-9717 or email us tax@jjjcanada.com

Basic personal amount (line 30000) – The amount has increased to $13,229.

Age amount (line 30100) – The maximum amount has increased to $7637.

COVID-19 related payments (line 13000) – Payments are reported in T4A slips:

  • Box 197: CERB
  • Box 198: CESB
  • Box 199: CESB for eligible students with disabilities or those with children or other dependents
  • Box 200: Provincial/Territorial COVID-19 financial assistance payments
  • Box 202: Canada Recovery Benefit (CRB)– you may have to repay all or part of CRB if your net income is more than $38,000
  • Box 203: CRSB
  • Box 204: CRCB

Other employment expenses (line 22900) – claim home office expenses in T777S form.

  • Option 1 – Temporary flat rate method (no proof of expenses is required). You could claim up to $400 deduction if you worked more than 50% of the time from home for a period of more than four consecutive weeks in 2020 due to COVID-19.
  • Option 2 – Detailed method (T2200S and proof of expenses are required). You may choose this option if your related expenses are more than $400.
Eligible Expenses Non-eligible Expenses
ü  rent paid for a house or apartment

ü  electricity, water, heat, or the utilities portion of your condominium fees

ü  maintenance (minor repairs, cleaning supplies, light bulbs, paint, etc.)

ü  home internet access fees

ü  office supplies (stationery items, pens, folders, sticky notes, postage, toner, ink cartridge, etc.)

ü  employment use of a basic cell phone service plan

ü  long distance calls for employment purposes

Employees who earn commission income can also claim the following:

ü  property taxes

ü  home insurance

ü  lease of a cell phone, computer, laptop, tablet, fax machine, etc. that reasonably relate to earning commission income

û  capital cost allowance

û  mortgage interest

û  principal mortgage payments

û  capital expenses (replacing windows, flooring, furnace, etc.)

û  office equipment (printer, fax machine, briefcase, laptop case or bag, calculator, etc.)

û  monthly basic rate for a landline telephone

û  cell phone connection or license fees

û  purchase of a cell phone, computer, laptop, tablet, fax machine, etc.

û  computer accessories (monitor, mouse, keyboard, headset, microphone, speakers, webcam, router, etc.)

û  other electronics (television, smart speaker, voice assistant, etc.)

û  furniture (desk, chair, etc.)

Your tuition, education, and textbook amounts (line 32300) – The Canada training credit that the student claims for the year reduces the amount that they can use to calculate their tuition tax credit, transfer to a designated individual, or carry forward to a later year.

Canada training credit (CTC) (line 45350) –Starting in 2019, you can accumulate $250 in your CTC limit each year, up to a maximum of $5,000 in a lifetime, if you are eligible:

  • 25-65 year of old by end of 2020
  • resident in Canada throughout 2020
  • working income is more than $10,100
  • net income is less than $150,473
  • file an income tax and benefit return
  • CTC limit for 2020 is greater than zero
  • tuition or other fees were paid either to an eligible educational institution for courses you took in the year for which you are claiming the credit, or to certain bodies for an occupational, trade or professional examination
  • the tuition and fees are otherwise eligible for the existing tuition tax credit

Digital news subscription expenses (line 31350) – you may be able to claim a non-refundable tax credit up to $500 for expenses you paid in the year for a digital news subscription with a qualified Canadian journalism organization.

Donations and gifts (line 34900) – For 2020 and later tax years, you may be able to claim a non-refundable tax credit for donations made to registered journalism organizations.

Canadian journalism labour tax credit (CJLTC) (line 47555) – For 2019 and later tax years, you can claim this if your are a member of a partnership that is a Qualifying Journalism Organization

Mineral exploration tax credit for flow-through share investors – This investment tax credit is extended for an additional 5 years to March 31, 2024.

ON428: The Ontario apprenticeship training tax credit has been eliminated as of November 14, 2020. The dividend tax credit for dividends other than eligible dividends has been decreased.

How to Register My Account

 2020 Year Tax Brackets (Fed/ON)  
  • At        $13,229         –          20.05%
  • At        $44,740          –          24.15%
  • At        $48,535         –          29.65%
  • At        $78,783          –          31.48%
  • At        $89,482         –          33.89%
  • At        $92,827          –          37.91%
  • At        $97,069       –            43.41%
  • At        $150,000       –          44.97%
  • At        $150,473     –            48.19%
  • At        $214,368       –          51.97%
  • Over   $220,000       –          53.53%
(Triple J provide tax planning services)