What to Expect from the upcoming 2020 Tax Season
Originally Published on CBC News
December 29, 2020
Here’s what to expect from the upcoming 2020 tax season:
The year 2020 was full of changes for everyone. Many lost their job, had a decrease in income, were forced to work from home, and had to deal We can only expect the tax season to feel just as disorienting.
“I think for a lot of people if it hasn’t already felt and looked like chaos, it will probably feel that way,” said Sandi Martin, partner and financial planner at Ontario-based Spring Financial Planning Inc. “I think a lot of people this year, more so than most, are going to feel just a little bit worried that they’re not doing all the right things or have all the right slips.”
CBC shares with us the changes and what to expect for the 2020 tax season:
- According to Evelyn Jacks, president and CEO of the financial education institution Knowledge Bureau, The Canada Emergency Response Benefit Income, or CERB, may be the biggest change when filing income tax.
- There are also changes in the Basic Personal Amount which is a non-refundable tax credit that can be claimed by all individuals. The maximum BPA climbed from $12,298 to $13,229 for individuals with a net income of $150,473 or less.
- The Canada Revenue Agency will also allow eligible Canadians who worked from home last year to claim up to $400 as a tax deduction for the 2020 tax year.
Overall, we’re anticipating a more complex tax season than we’ve seen for some time.
– Evelyn Jacks, Knowledge Bureau
Sandi Martin says “A lot of people will miss out on tax savings just because of the lack of clarity.” Therefore, Sandi recommends that people carve out 15 minutes each week to organize papers ahead of tax time so it’s not a last-minute task.
Read the full article for more insights on the New Expenses to Claim and How to get ready for the upcoming 2020 tax season.