There are new rules this tax season, courtesy of COVID-19. Here's what you need to know

Those who worked from home may get money back while those who collected benefits may get tax bill

Heads up, Canadians: Due to the COVID-19 pandemic, this is going to be a tax season like no other.

If you collected COVID-19-related benefit payments last year, you might end up owing more money than in previous years. However, if you spent part of 2020 working from home, you could wind up with a bigger tax refund than usual.

Here's what you need to know about filing your taxes this season, including important deadlines.

Has the deadline been extended?

Despite this being a more complex tax season, the Canada Revenue Agency (CRA) has not extended the tax filing deadline. The due date is still April 30 for most Canadians, and June 15 for self-employed people. 

To avoid interest charges, Canadians need to pay any taxes owed by April 30. However, not everyone has to comply with that rule this year.

Those who had a total taxable income of $75,000 or less and received one or more of the COVID-19 benefits listed below don't have to pay their taxes until April 30, 2022. 

Eligible benefits:

• Canada emergency response benefit (CERB).

• Canada emergency student benefit (CESB). 

• Canada recovery benefit (CRB).

• Canada recovery caregiving benefit (CRCB).

• Canada recovery sickness benefit (CRSB).

• Employment Insurance benefits.

• Similar provincial emergency benefits.

Qualifying Canadians "will have that full year after the filing deadline of April 30th [2021]" to pay any tax debt without facing interest charges, said Francesco Sorbara, Parliamentary Secretary to the Minister of National Revenue.

Those who qualify for the payment deferral still need to file on time if they owe taxes — or they'll face a late-filing penalty.

Will I owe taxes on my government benefits?

The benefits listed above are considered taxable income, so the federal government introduced the tax-payment deferral to help out the many Canadians who will have to pay taxes on their benefit payments. 

"[Many] lost jobs and collected benefits, and they may have some amounts owing," said Sorbara. "We're giving some flexibility there." 

CBC

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