As you begin to get ready to prepare your 2021 tax return, I wanted to ensure you’re aware of important upcoming dates and what you need to compile so you have everything you need to file your return with minimal hassle.
March 1 is the RRSP contribution deadline. As mentioned in my last column, the final date for your RRSP contributions to be eligible for the 2021 tax year is March 1, 2022. Refer to your Notice of Assessment (NOA) or access the CRA “My Account” to confirm your total RRSP contribution limit for the 2021 tax year.
May 2 is the tax filing deadline for individuals. The deadline to file your 2021 personal income tax return is May 2, 2022, unless you're self-employed. I appreciate many Canadians try to file well ahead of this deadline but it’s very important to wait until you have all of your tax related documents before doing so.
June 15 is the tax filing deadline for self-employed individuals. The deadline for self-employed people is six weeks after the normal deadline which is due to some of the extra complexities their filings can face. But since they can be more complex, it’s a good idea to get started earlier.
What do you need in order to file? – While not an exhaustive list, most people should, at a minimum, compile the following:
1) “Rest of 2021” RRSP contribution receipt—A statement of all RRSP contributions you made between March and December 2021.
2) “First 60 days” RRSP contribution receipt—A statement of RRSP contributions made from Jan. 1 to March 1, 2022.
3) Non-Registered tax slips for both individual and corporate accounts (T3, T5, T5008, etc)—These slips will be issued if you have earned any interest, dividends or capital gains in a personal, joint or business account, depending on the investments you hold in those accounts.
4) Income tax slips (T4s, T4Es, etc)—Detailed tax slips for employees earned income that include contributions made to things like employer pension plans, union dues, etc.
5) Retirement tax slips (T4A, T4RSP, T4RIF, etc)—These slips confirm the amounts that have been withdrawn from retirement accounts such as RRIFs, pensions and annuities and have been reported to the CRA.
6) Advisory fees for investments—Most investment managers these days have now switched to an “un-embedded” advisory fee model where the fees you pay for their management services is broken out and can be deducted against gains earned. These fees are often found on your December 2021 client statement.
Currently, it is also important to gather slips for any COVID related income programs too.
When should you file?—As mentioned above, I appreciate that many Canadians want to get the unpleasant task of tax filing done early but the organizations responsible for providing all of the above slips and receipts need time to put them together.
It is your responsibility to make sure that you have all necessary information before filing your return so be sure to put together a list of everything you should be receiving and reach out to the appropriate party by the end of March if you are missing one.
And when you do have everything you need, make sure to not miss the deadlines.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.