What's new to taxes
this year ?
Changes rolling out in 2021 include a new tax form and more flexible credits and transfers. Now is the time to understand how they will impact your returns.
Covid-19 Tax Info
- COVID-19 benefit repayment - If you repaid all or part of COVID-19 benefits received in 2020 or 2021, you're able to choose the year to deduct the repayment amount. You should receive a slip reporting repaid amounts for EI (T4E) as well as CERB, CRB, CRCB, and CRSB benefits (T4A). These amounts can be imported through Autofill my return or entered manually in the Income section.
- Work-from-home expenses - If you had to work from home due to COVID-19 closures in 2021, you're able to make claims in the Employment Expenses section on forms T777 or T777S , under the same rules introduced in 2020. Learn more about which expenses you can claim.
- Provincial COVID-19 assistance - One-time provincial payments to help you through COVID-19 are not taxable and should not be reported as income on your 2021 tax return.
Federal Tax law changes in 2021
- Disability Tax Credit - The eligibility requirements for this non-refundable credit have expanded to include an updated list of mental functions of everyday life, a longer list of activities in determining time spent on life-sustaining therapy, and reducing the minimum required frequency of therapy.
- RRSP Limit Calculation - Postdoctoral Fellowship Income will now be considered earned income for RRSP. Taxpayers are allowed to adjust 10 years back
- Canada Workers Benefit - The Canada Workers Benefit has been updated with increased amounts and will now be available to more individuals. Also, the secondary earner exemption was introduced for individuals with an eligible spouse.
Tax Credit for Volunteer Respite and Respite for Caregivers - After the changes to the tax credit for caregivers in 2020, the tax credit for volunteer respite and the tax credit for respite for caregivers has been abolished in tax year 2021.
Tax credit for shares of Capital régional et coopératif Desjardins - The rate of the tax credit for the acquisition of Capital régional et coopératif Desjardins has decreased from 35% to 30% for shares acquired after February 28, 2021.
Labour-sponsored funds tax credit - Fonds d'actions shareholders tax credit rate has decreased from 20% to 15% as of June 1, 2021.
The Seniors' Home Safety Tax Credit - This new credit supports seniors in making their homes safer and more accessible, with a credit of 25% up to a max $10,000 in eligible expenses.
Childcare Access and Relief from Expenses (CARE) Tax Credit - For tax year 2021 this credit will be increased by 20%.
Temporary Ontario Jobs Training Tax Credit - This new credit allows individuals to claim 50% of eligible expenses for 2021 to a max credit of $2,000.
Ontario Apprenticeship Training Tax Credit - This credit has expired for tax year 2021.
Home Renovation Tax Credit - This new non-refundable tax credit allows homeowners to claim eligible home renovation expenses.
The Active Families Benefit - This benefit has been reinstated for tax year 2021.
BC Mining flow through share income tax credit - The eligibility period has been extended.
Equity Tax Credit - This credit has been extended for tax year 2021.
Prince Edward Island
Children's Wellness Tax Credit - This new non-refundable $500 credit for families with children under 18 for eligible activities related to the children's well-being.
Newfoundland and Labrador
Physical Activity Tax Credit - This new physical activity tax credit allows families to claim up to $2,000 in eligible expenses and receive 8.7% back to a maximum of $174.
Manitoba Teaching Expense Tax Credit - This new credit allows a 15-percent refund for up to $1,000 in supplies ($150 maximum refund) with the same eligibility criteria of the existing federal Eligible Educator School Supply Tax Credit.