By Karine Dufour-Cauchon
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The season of accountability with both levels of government is on the horizon. With fiscal year 2020 causing twists and turns right down to taxpayers’ wallets, here are a few situations you could face.
I lost my job or stopped working for a while. I received an emergency benefit or employment insurance. Is this income taxable?
Employment insurance benefits and emergency benefit checks like the Canada Emergency Benefit (CEP) or Economic Stimulus Benefit (CEP) are part of taxable income.
You will receive a T4E – Statement of Employment Insurance and Other Benefits slip showing your total benefits and the amount of deductions. For employment insurance, tax may have already been withheld by the Canada Revenue Agency (CRA) at the level of 10%.
Emergency benefits were paid without withholding tax. The amounts will therefore be taxed as part of your 2020 income tax return. The amount to be reimbursed will be indicated there.
You will receive a T4A slip reporting your PCU income in box 197. Enter this amount on line 13000 of your tax return. If you worked in 2020, the new T4 slip will divide the employment income into periods that correspond to the PKU payment periods. The new T4 slip is intended to inform the CRA of the amount of PKU you received while you were still employed.
That being said, it is recommended that you set aside some money in case you have to pay tax as a result of your tax return.
I teleworked. What are the deductions to which I am entitled?
If you worked from home because of the sanitation measures, chances are you needed some supplies. If you do not receive an allowance from your employer for this purpose and he does not reimburse you directly for these expenses related to the exercise of your profession, you can deduct some of them in your income tax return. Two methods are available to you.
There is the “easy” method. She does not ask for receipts or supporting documents other than the employer’s certificate. It provides a fixed rate of reimbursement according to the number of hours worked at home. This method allows you to request $ 2 for each day of teleworking, up to a maximum of $ 400.
You can also choose the second method, where you must itemize your expenses. This is the preferred option if you want to have a reduction that corresponds more to the amounts spent on teleworking tasks. Your employer must complete and sign a Form T2200 – Declaration of Conditions of Employment. This form will allow you to complete form T777 – Statement of Employment Expenses, in which you will detail your expenses. Make sure you have kept all of your receipts. If you hesitate between these two methods, Revenu Québec has developed a “Decision Support Tool”. To access it, type the name of the tool in the platform’s search bar.
Is the deadline for doing my taxes always the same?
The deadline for filing income tax returns and personal income tax payments is still April 30, despite the health situation. The deadline for filing self-employed income tax returns is June 15. In some “extreme” cases, the Revenue Agency may extend the deadline. The new date will then be announced. Still, make sure you file your return by the appropriate deadline and pay your taxes by April 30, if applicable.
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