As 2021 begins – and we enter into likely one of the busiest tax seasons we have encountered – with various new government income streams to declare and many new income tax deductions that are still being rolled out… Our main priority is to ensure all of our clients are prepared, organized and ready!
Below, we have put together a few lists – both for individuals and businesses – to help you prepare for an effortless tax filing season:
For Businesses – We recommend to get all your 2020 slips filed to CRA to avoid any penalties by end of February 2021, here are a list of examples:
- T4 slip preparation for your employees
- T5 slip preparation for any dividends received for your corporation
- T4A slip preparation for management fees/fees for services
- T5018 slip preparation for any subcontractors you hired throughout the year
For Businesses – Work at getting your bookkeeping and filing requirements up to date. Ensure you are filing on time to avoid any penalties/interest. Here is a list of things to work on now:
- Accounts Receivable Review – Determination of any invoices to be written as bad debt in 2020
- Getting up to date with Monthly/Quarterly/Year End HST preparation and filing
- Getting up to date with any necessary WSIB filing requirements
- Assistance with any overdue payroll requirements
- Make year end adjusting entries now if you are able
- Remember T2 Corporate Tax Return Filing deadline (6 months to file after year end, 3 months to pay after year end)
- Remember T1 Income Tax Return Filing deadline (if you or your spouse have sole proprietor/partnership income to declare – due date to file is June 15, 2021 but payment is due April 30, 2021)
- For Individuals – End of February will be here before you know it. Here are some things to prepare for
- Do some number crunching with your 2020 income. Determine your RRSP contributions that you may want/need to make in the first 60 days of 2021 to apply to the 2020 tax return
- Gather and organize all receipts for deductions: medical expenses, child care expenses, donations, rent receipts..to name a few
- Remember T1 Personal Income Tax Filing deadline (deadline to file and payment due by April 30 2021)
As always, all of us here at SheDo Tax are more than able to assist with any of the above items and more.
We ask that when you do file with us this year to disclose ALL government Co-Vid related programs that you participated in throughout the 2020 taxation year (both business and individual programs) so that we can ensure all income is reported correctly.
We understand it is going to be a difficult filing season for most…rest assure…SheDo Tax has your back for the 2020 filing season!